E-commerce retail is abuzz about artificial intelligence (AI), and for good reason: Revenue generated from the direct and indirect application of AI software will grow from $1.38 billion in 2016 to $59.75 billion by 2025, forecasts Tractica. And the retail sector is one of the main drivers of growth.
AI-powered assistants and beyond, how will retailers and consumers benefit from artificial intelligence? Let’s take a look at the trends and some of the most important current and future applications of artificial intelligence in e-commerce retail.
Trend 1: Hyper-Targeting with Machine Learning
Many media outlets reported in 2016 and 2017 that machine learning reached mainstream status. Today, it is one of the most common applications of artificial intelligence, across industries.
Machine learning emulates the human approach to learning and problem solving, but at a massive scale and with tremendous volumes of complex data. Its applicability within retail—and more specifically, e-commerce marketing—comes as no surprise.
Smart retailers aren’t determining if they will transition their e-commerce systems to machine learning models—they are determining how.