It happens a lot of times! You log into your Amazon account to buy, say, a refrigerator. A month later, you log into the same platform and purchase a cooker. The next time you visit the site, you surprisingly discover that your feed is filled with different types of home appliance recommendations.
At this point, you’re probably wondering if some shadowy character has been monitoring your online activity. The truth is that someone (or something) has been keeping tabs on your online shopping trends. That’s why your feed is bombarded with products similar to what you’ve purchased before. And that entity is none other than AI.
However, you don’t need to fret, as your online security is not necessarily threatened. Although some e-commerce platforms may break all the rules while deploying AI in their systems, most reputable companies implement this technology to make their clients’ shopping experience seamless and hassle-free.
Let’s look at what AI is and how online retail outlets use this technology to influence your buying behavior.
What Is AI?
Artificial intelligence, commonly abbreviated as AI, is among the most fascinating technological inventions.
The simplest definition of AI is a computer-based technological system designed to perform tasks that previously required human intelligence. Examples of such tasks include speech recognition, visual perception, language translation, machine operation, and decision-making.
Artificial intelligence has revolutionized virtually all major industries in the recent past. For instance, homeowners can install speech recognition technology that only allows persons whose voices are pre-stored within the home security system to access the property. We’ve also seen robots replacing the need for human personnel in the military, traffic control centers, and healthcare facilities. E-commerce websites haven’t been left behind in the frantic adoption of artificial intelligence technology.
How Do E-Commerce Websites Use AI To Control Their Clients’ Buying Behavior?
1. Analyzing Buyer Information from Other Websites
The scope of artificial intelligence programs installed in one e-commerce website is not necessarily limited to that platform. That’s especially as far as data collection is concerned.
AI tools like Finixio AI utilize machine learning algorithms to collect large volumes of data from various sources. These include social media platforms and dating websites.
The data is then crunched further to hone in on what a web visitor is likely looking for based on their past activities.
So, if you’ve been clicking on specific pop-up ads on a dating platform, don’t be surprised if your Amazon account’s feed is filled with related products.
2. Suggesting On-site Personal Recommendations
We’ve already painted a picture of how e-commerce companies can deploy artificial intelligence to display products their clients may be interested in. But exactly how does this happen?
When you sign into an e-commerce store that implements artificial intelligence, your every move is monitored. That includes making a purchase or simply clicking on a product to check it out.
AI tools record your behavior patterns in some virtual database, the same way your doctor would store your medical profile. These tools are also smart enough to detect your online activity merely based on your sign-up credentials.
The next time you visit the platform, AI will quickly fill your feeds with information you’re likely to be interested in.
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3. Streamlining the Shopping Experience
E-commerce platforms are continually wary of bounce rates. Most customers will exit a website if they’re unable to find what they’re looking for within 10 seconds.
To address the scourge of bounce rates, e-commerce stores deploy AI-powered customization tools to streamline their clients’ shopping experiences.
As a potential customer, AI systems eliminate the hassles of looking up a product on the search bar. The items you’re looking for will likely pop up in the list of recommendations, from which you can directly click on them and complete your purchase.
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4. Creating Enticing Product Descriptions
Not all online product descriptions are created by real people. For manufacturers churning out thousands of similar products daily, it makes little economic sense to engage human personnel to write every product description. And that’s where AI comes in.
Many e-commerce stores can now use artificial intelligence to generate product images. It’s not surprising that most online product recommendations appear as pop-up images.
AI tools compare a product’s image and description with similar pre-existing items in its database. This ensures that the automatically generated descriptions are as accurate as possible.
5. Analyzing Buyer Demographics
As already mentioned, artificial intelligence systems are smart enough to discern the identity of an online user merely based on their sign-up credentials. But that’s not all. These tools also deploy powerful machine learning technology to analyze buyer demographics.
Now, most e-commerce companies will need you to sign up for an account on their platform before buying anything. Usually, the account creation process would include filling in your personal information, such as name, age, gender, and geographic location.
Once these details are captured by an e-commerce website, the site’s AI tools can use them to filter your searches even further.
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There’s no limit to how artificial intelligence will continue revolutionizing the e-commerce industry. As a buyer, it’s important to note that AI in itself isn’t a privacy-invading tool.
However, some companies can deploy these systems to gain unauthorized access to your sensitive information. That underscores the importance of shopping from reputable e-commerce websites.