If you are close to the tech world, you probably have already heard about or even studied generative AI. As the next step in AI advancement and complexity, generative AI also raises many questions and concerns.
Even so, it can be advantageous for a great number of industries, as it provides more personalization, data analysis and automation. This is especially true for the e-commerce industry, that is already digital and used to applying innovative solutions throughout the entire supply-chain.
What is different with generative AI?
Before jumping into what generative AI can do specifically for online commerce, let us dive deeper into why it has received so much attention and what does the term “generative” means.
“Generative AI” refers to a category of artificial intelligence technologies that uses advanced machine learning techniques to generate new content, data, or information that is original and not merely a reapplication of previously existing data.
This contrasts with traditional AI, which typically focuses on analysing data, recognizing patterns, and making decisions based on existing information. The key difference lies in the creative aspect of generative AI, which is where the term “generative” originates from.
How can generative AI increase e-commerce sales?
This technology can be an asset in different parts of the supply chain.
Personalization of Customer Experience:
Generative AI can analyse customer data and offer personalized product recommendations, improving the buying experience and increase the chances of making a sale.
Data Analysis and Insights:
The processing and analysing capabilities for large volumes of data can provide online retailers with a better understanding of market trends, consumer behaviour and optimization of business strategies.
Inventory management:
Generative AI can predict sales trends and help on stock management, reducing excess of products and avoiding product shortages.
Logistics Optimization:
Generative AI can optimize delivery routes, warehouse management, and predict logistical issues, improving the efficiency of the entire supply chain.
Fraud Detection:
AI systems can detect fraudulent patterns in online transactions, offering an additional layer of security to both consumer and retailer.
Product Development:
Generative AI insights can inform the development of new products, ensuring they meet consumers’ quality standards and needs at all times.
These are just a few examples of how generative AI is reshaping the e-commerce industry, making it more efficient, personalized, and innovative. As this technology receives more attention and develops even more, we might find new applications that will generate an even more significant impact on sales.
Any online retailer that is not using generative AI for at least some of the above-mentioned activities, is losing precious time in the run for competitivity. Don’t be left behind! Talk to our experienced team of consultants and learn how generative AI can deliver exclusive value for YOUR business.