Sentient AI – Ecommerce Personalization

Artificial Intelligence (AI) is used to uncover hidden patterns in large sets of data that are not obvious. The use of AI allows the software to go through multiple reiterations (scans) of massive amounts of data, appropriately called “Big Data.” Then, by applying an algorithm, which is a set of decision-making strategies, the AI programs can both produce results for further analysis and learn from the results produced.

The more advanced applications of AI now include predictive capabilities. This is very useful when dealing with consumers. Predicting buying intent is an excellent way to convert customers and/or potential customers into sales. In fact, AI programs can often predict when a consumer is ready to buy something even before the consumer has any clear idea about it.


Using AI for Predictive Analysis

Prior to using AI in a marketing strategy, the predictive needs for consumer marketing fell solely on the shoulders of humans who are specialists in consumer behavior. However, when AI is used, the amount of fine-tuning that can be done to marketing campaigns makes the analysis very valuable. The AI software does all the heavy number-crunching and then humans review the analysis results. Humans are also involved in creating the algorithms that the AI software uses to make decisions.

The real benefit of using AI is that massive amounts of data can be processed, which would be impossible for people to do without computer/software support. Sometimes, unusual and surprising patterns appear from such massive data analysis. These provide powerful insights that cannot be discovered in any other way. Read more at Wikipedia about Sentient.

Using AI for Ecommerce Personalization

A research study conducted by Gartner made some interesting predictions in regards to the use of AI in eCommerce personalization. First of all, the expectations are that by 2020 about 20% of the CIOs of major corporations will be focused on AI as a top-five priority. Moreover, about 85% of the interactions with customers of most organizations will be conducted using AI and will not need human interaction.

Rather than feeling neglected by the lack of human contact, consumers will experience enhanced services supported by AI that will create a more personalized experience. Products and product recommendation will be customized for each consumer by using what AI learns about that person’s interests and tastes.

Boston Consulting Group reports that when AI is engaged to create a personalized customer journey, sales go up by as much as 10%. This increase happens 2 to 3 times more quickly than sales increases experienced by retailers who do not have the benefit of using AI for their marketing purposes.



AI is extremely beneficial to marketers, especially those in retail sales because of its powerful predictive analytics that comes from pattern recognition in large amounts of data that humans would never be able to see without using AI to find it.



3 ways artificial intelligence (AI) will transform ecommerce in 2018

3 ways artificial intelligence (AI) will transform ecommerce in 2018