Do you know the global AI market size is expected to increase by $266.92 billion by 2027?
Artificial Intelligence is the game-changer for e-commerce stores. Artificial Intelligence has been a hot topic in the e-commerce industry across the globe.
Machine Learning and its subset of Artificial Intelligence have improved the e-commerce industry.
The e-commerce industry is getting revolutionized.
Irrespective, whether you run a small business or an established eCommerce store, then the Magento platform can easily incorporate artificial intelligence in your store to drive sales.
Magento is one of the commonly used platforms for eCommerce, and it has artificial intelligence that makes selling exciting and easier.
Many eCommerce businesses are using forms of artificial intelligence to understand customers, generate new leads and offer an improved customer experience.
Through this article, let’s look at Artificial Intelligence's growth in one of the most prominent platforms, i.e. Magento.
What is Artificial Intelligence in e-commerce?
Artificial intelligence in the E-commerce industry is utilized by online e-commerce to offer chatbot services, analyze consumer comments, and offer customized services to online consumers.
Artificial Intelligence has started to be established in all domains of life. Therefore, it is extensively anticipated that Artificial Intelligence was already investing more in new Artificial projects.
Advantages of artificial intelligence in Magento e-commerce
One of the best things about Artificial Intelligence is that it seamlessly integrates its business strategies.
1. Targeting potential customers
Targeting potential customers get more difficult, especially for sales and marketing teams to analyze possible leads.
To resolve this matter, more and more eCommerce companies are taking assistance from Artificial Intelligence.
To track consumer behavior by observing in-store behavior using facial recognition software and online customers through different offers.
2. Efficient logistics
Artificial Intelligence in logistics assures a seamless and hassle-free delivery process. Machine learning algorithms are used for automated warehousing functioning and warehousing uses automation to a great extent.
Most of the eCommerce giants, others are making use of AI to a great extent in machine learning and robotics. The speed and efficiency will be improved and it will deduct the costs.
3. Personalization
Artificial Intelligence is an E-commerce business that can create customized marketing campaigns to interact with consumers.
A customized intelligent automation system is based on customer history, current requirements, and specific tasks. According to the customers' needs, you can make product recommendations, create personalized emails and set prices.
4. Better sales process
Sales processes have changed and e-commerce retailers use different kinds of digital platforms.
Artificial Intelligence is combined in CRM systems that serve consumers. Furthermore, Artificial Intelligence answers customer queries, solves problems and even identifies new sales opportunities.
5. Search optimization
To integrate Artificial Intelligence thrives in the search capability of your E-commerce website.
When search optimization makes it easier for the customer, they are inclined to browse more on the website. The search has become so easy and simple that Artificial Intelligence gives suggestions by acknowledging personal characteristics.
Applications of Artificial Intelligence in Magento eCommerce?
The globe is serving more businesses that introduce Artificial Intelligence and machine learning in other aspects of their e-commerce operations.
Here are ten Artificial Intelligence Applications in Magento to boost your business.
1. Inventory Management
Artificial intelligence can streamline the process of inventory management businesses while increasing efficiency.
When it is about inventory management, efficiency here implies maintaining the right stock levels without ending up with dead-stock in your warehouse.
AI-powered inventory management can examine a website’s sales trends and anticipate possible changes in the product’s demand.
This helps avoid overcrowding and remarkably reduces the possibility of running out of stock of best-selling products.
2. Marketing
When you use Artificial Intelligence to support the marketing efforts, you can live into your campaigns by personalizing your audience more precisely.
For example, a customer is questionable whether a marketing email is quite infuriating if it entails content relevant to their curiosity.
Email marketing powered by Artificial Intelligence pulls data and consolidates all information to come up with better insights.
With insights, you can create customer segments on your Magento store to target using personalized promotions.
3. Customer Service
Retailers can use Artificial Intelligence to help with customer service on their Magento stores.
In recent years, the development of Artificial Intelligence-based has seen rapid growth.
As a result, E-commerce websites have adopted an innovative way to satisfy their customers and provide the best customer services by using AI.
The customer’s queries are attended to immediately and responses are given based on their queries.
A human is unapproachable in the picture. A customer can interact with the company 24*7 and 365 days a year.
4. Magento Product Recommendations
This tool displays other additional information also along with the suggested products. This tool will easily customize the frequently bought together products block layout and the admin can freely select the product's position within the page.
Magento 2 Frequently Bought Together traffic and drive sales extensions to increase conversion rate by exhibiting frequently bought products to customers on the product page based on customer behavior for the selected product.
5. Product Trails
Product returns and refunds due to incorrect sizing are targeting e-commerce businesses.
The latest innovations in augmented reality have guided the application development capability and allowed customers to try on products virtually.
6. Cybersecurity
Artificial intelligence has improved the cybersecurity of E-commerce websites.
It can easily detect any fraudulent activities. E-Commerce deals with many transactions daily. Cyber hackers can easily hack the user account to gain unauthenticated access.
This can lead to the private data’s exposure to online fraud.
The business’s reputation and to prevent this, Artificial intelligence and machine learning algorithms are developed to mitigate the chances of fraud activities over the website.
7. Chatbots
The fundamental reason why E-commerce websites are live 24*7 is that chatbots are programmed to provide solutions to all customer queries.
In turn, it helps the customer make purchase decisions and communicate with prospective customers.
According to the latest Business Insider Intelligence research, approximately 40% of users globally prefer interacting with chatbots over virtual agents.
8. Customer Relationship Management (CRM)
Customer Relationship Management depends on the huge amount of data and collecting the data and serving the clients.
Artificial intelligence can foretell which customers are likely to make a purchase. Artificial intelligence applications can assist in identifying trends and plan actions. Using machine learning algorithms, advanced CRM can learn and enhance.
9. Sales Improvement
Artificial intelligence applications generate and predict the accurate forecast of the E-commerce business.
The historical data, data analytics, and latest trends can help build a healthy pipeline and examine team performance. This can give better insight into the recent trends in sales. In this way, one can analyze the latest trends and improve sales by making strategies.
10. Fake Reviews
Reviews play an important role in helping customers make purchasing decisions.
According to a survey, about 87% of consumers read online reviews for local businesses in 2020. However, people are getting more skeptical, using artificial intelligence to analyze large volumes of user-generated content.
Reviews help the customers see the truth and be used by ecommerce stores to leverage the opinion instead of inviting fake reviews on their ecommerce store.
How can we apply artificial intelligence (AI) to Magento websites?
The use of ai for magento 2 is transforming the E-commerce industry to predict shopping patterns based on the products of consumers.
For example, suppose online consumers frequently buy a particular brand every week. In that case, the online seller could send a personalized offer to these shoppers and use machine learning.
E-commerce AI tools or AI-enabled digital assistants such as Siri, Google Assistant tools are developing capabilities.
Some other Applications Of Artificial Intelligence in Magento
Virtual Shopping Assistant
AI modifies virtual shopping by improving the shopping experience. This helps to acquaint the shoppers with the discounts, deals, services, and new products.
Safe and Secure Platform
Integrating the Magento e-commerce platform with the Artificial Intelligence tool will assist in identifying any fraudulent activities.
The transactions, online payments, and important activities are always risky for a customer. Artificial Intelligence in Magento saves time and identifies any unsafe third-party platforms.
Great Shopping Experience
Magento is used by both B2B and B2C customers because it offers advanced search options and several such extensions for a better consumer experience.
Hence, Artificial Intelligence-based search and navigation make it more user-friendly and improves customer's shopping experience.
Personalization
Recommendations are given to users for customized deals, which are purely based on their previous online behaviors.
When artificial intelligence and machine learning are integrated into the Magento platform, it improves personalization and manages a fast-growing e-commerce platform. Hence, connect with customers easily.
What is the future of AI in Magento?
The scope of Artificial Intelligence in Magento is just not limited to the sales and advertising, however it is another important way of managing a successful e-commerce business.Implementing Artificial Intelligence into their business is expensive and isn’t meant to be a short-term investment.
Artificial Intelligence has a huge influence on the eCommerce sector, with data showing.
ECommerce is one of the Artificial investments and guarantees that customers enjoy an easier, more seamless, more convenient, more personalized and faster shopping experience than ever before.
Conclusion
Artificial intelligence has helped E-Commerce websites in providing a better user experience.
Artificial intelligence research in the field of E-commerce is influencing the sales of E-commerce websites too.
Artificial Intelligence is a well-built e-commerce store and is a long-term investment. If you implement it in the right manner and use the appropriate approach to incorporate it into a Magento store, then it will save your business money.
E-commerce websites are witnessing an exponential surge in their sales. Hire Magento 2 Developers to build a Magento Store for your ecommerce business.
