Artificial intelligence has revolutionized e-commerce and online business across the globe. There are different artificial intelligence tools that are helping consumers in making their shopping decisions and even placing orders for them. The increase of online shopping due to factors including improved technology and pandemics have led to an increase in the use of artificial intelligence among business people.
Therefore, the integration of technology and the human resources is essential for the increase in productivity and profitability in organizations and businesses. Most business organizations are incorporating artificial intelligence in their operations for several purposes. Some of the reasons for the installation of artificial intelligence include the improvement of consumer experience, smooth operations of the business and improvement of security of consumer’ information.
Applications of Artificial Intelligence in E-commerce and Online Business
There exists different artificial intelligence technologies that helps in the smooth operations of business. Some of these applications include the following:
Chatbots acts as the virtual assistants to help consumers with their business inquiries about the good s and services of a given company. According to Song et al. (2019), the chatbots and other virtual assistants provide consumers with a 24/7 assistance throughout the week. The Chatbots provide a nice experience to consumers in several ways apart from the 24/7 assistance. Some of the benefits of the chatbots include interpretation of natural languages. The interpretation of natural languages enable the chatbots to process voice-based interaction with customers. Therefore, it makes it easier for consumers to conduct their businesses with the organization.
Similarly, the chatbots have self-improvement capabilities. They improve overtime with the interactions with consumers thus providing better services to consumers. Other capabilities of the chatbots include processing of consumer needs through deep insights and customizes/personalizes the needs of consumers for ease of doing business between the consumer and the organization.
Voice Recognition Applications
Artificial intelligence has enabled consumers to use their voices in making online orders. These applications recognize the voices of consumers and makes online orders on their behalf (Song et al., 2019). However, Kalia indicated that the voice recognition application only captures vital information. The application is still under development and cannot capture every word spoken by consumers.
Visual algorithms enable consumers to post pictures of the products they desire thus enabling visual searching. For instance, google lens enable prospective consumers to touch and hold on online pictures thus triggering visual search of the pictured item in the online stores.
The facial recognition application could help e-commerce and online businesses in identifying their target consumers. The facial recognition application can estimate the age, gender and other physical attributes of a consumer. Therefore, facial recognition application could help online business and e-commerce in grouping and sorting out their targeted consumers for business purposes.
Augmented reality application allows potential consumers to test company products virtually before settling on one. For instance, the augmented reality could help consumers in identifying the best color for their dream car.
Product Recommendation Application
The product recommendation application predicts the necessary products and services to consumers based on their browsing history and demographic information. The information collected by this artificial intelligence application improves with time thus providing better recommendations for consumers in their future endeavors.
According to Song et al. (2019), product recommendation application help online businesses in various ways including ensuring loyalty of consumers. The consumers would keep returning to the specific online business/ e-commerce due to the recommendation of the products and services. Similarly, the product recommendation application creates a good consumer experience thus ensuring retention of consumers. Moreover, the good experience among consumers ensure higher productivity and profitability of the online businesses and e-commerce.
Data protection Application
The data/fraud protection applications enables online business and e-commerce to detect several anomalies in their operations. For instance, online/ e-commerce businesses could use CAPTCHA re-CAPTCHA method to distinguish human beings from robots. However, one of the limitations of the fraud protection application is that people with visual impairments would be unable to use it. Some of the CAPTCHA re-CAPTCHA methods require the identification of specific images, thus, making it difficult for the blind to use it.
Inventory Management Application
The management of inventories of business ensures that business owners add their stocks appropriately. It prevents business owners from increasing idle stock. The artificial intelligence allow business owners to manage their inventories based on factors including the trends of sales over the previous financial years and the projection/anticipation on the changes of products in the market. Additionally, the artificial intelligence uses projected issues related to the supply of products and services to help business owners manage their inventories. Therefore, the artificial intelligence helps online business owners to manage their inventories for maximum profitability.
Internet of Things (IoT)
The internet of things refer to the collection internet devices that provides efficiency in the operation of organizations and businesses. Artificial intelligence enable the internet of things to connect various departments of online businesses including inventory management, supply chain and warehouse managements. Internet of things sensors enable online businesses to monitor inventories thus minimizing and or eliminating human errors. Similarly, the internet of things, through artificial intelligence, could improve consumer experience through the suggestion of trending/latest products in the market.
Internet of Things
The operations of ecommerce and online business are on the rise. Increased online businesses/e-commerce demands for an increase in same day/next day delivery of goods to consumers. Verma et al (2021) posited that it is becoming hard for businesses to operate the traditional system of managing warehouses. Therefore, online businesses and ecommerce are opting for the automation of warehouses to meet the increasing demands of orders that translates to higher deliveries.
The business people in online business and e-commerce are using artificial intelligent robotics to ensure the processing and deliveries of orders from the consumers. Some of the other advantages of the automation of warehouses includes improved accuracy in managing orders and deliveries of goods to consumers. Additionally, the automation of warehouses help in reducing and or eliminating injuries among employees of in a warehouse, minimizes the operating cost of businesses and reduces the chances of stock damages. Finally, the automation of warehouse using the artificial intelligence helps in fastening the retrieval and stock addition in the warehouses.
Advantages of Artificial Intelligence in Online Businesses and E-commerce
Artificial intelligence provides several benefits to online business and e-commerce. Some of these benefits include the following.
Improved Security in Business Operations.
The artificial intelligence, through fraud protection, provides additional security to business and consumer information. The fraud protection application has the capabilities to protect sensitive information from access by unauthorized persons. Therefore, the artificial intelligence provides additional security in online businesses and e-commerce.
The use of artificial intelligence in the online businesses and e-commerce cuts on the operating cost. For example, the automation of the warehouses ensures that businesses cuts on the employment cost in warehouse management. Additionally, the use of artificial intelligence in business minimizes human errors that would have been costly to the business. Finally, artificial intelligence helps in the monitoring of business throughout the business operations. The monitoring of the business operations ensures that the artificial intelligence gather vital information needed by the management to improve future operations of the business.
Improvement of Customer Experience
Artificial intelligence ensures constant communications and interactions with clients thus ensuring loyalty of consumers to the given business/ organization.
Disadvantages of Artificial intelligence in Online Businesses and E-commerce
The installation of the artificial intelligence applications is costly to many online businesses and e-commerce. Similarly, the maintenance of the applications of the artificial intelligence might increase the operating cost of a business. Therefore, small business might find it hard to install and maintain the applications of the artificial intelligence.
The applications of the artificial intelligence has the creativity of its inventor. However, it becomes harder to improve on the creativity whenever there is a business program demanding higher creativity. Therefore, its lack of creativity could cost businesses in its future operations.
Computer programs are not exempted from errors, just like human beings. The programming of the applications of the artificial intelligence could cause errors. Similarly, there might exist loopholes in the various applications that might cause security concerns. Hackers might take advantage of the existing loopholes in the security measures and alter with the normal operations of the artificial intelligence operations. Therefore, it is essential to counter-check the results/information provided by the artificial intelligence applications.
Other disadvantage of the artificial intelligence include high dependency rates. Most business operating using the artificial intelligence have higher dependency rate on its applications. Therefore, such businesspersons would experience difficulties conducting their businesses in case of defects in the applications.
Artificial intelligence continue to improve the ease of operations in online businesses and e-commerce. There are different artificial intelligence applications that have revolutionized the operations of online businesses and e-commerce over the years. Some of these applications include fraud protection, facial recognition, automated warehouse, and internet of things. Artificial intelligence has reduce errors, cost of operations and efficiency of operations in online businesses and e-commerce. However, some of the disadvantages associated with artificial intelligence include high cost of installation and maintenance and security concerns. Despite all the drawbacks of the artificial intelligence, it is one of the inventions that has really improved the effectiveness and efficiency of operations of online businesses and e-commerce.