As stated in the PwC prediction, AI has the power to contribute up to $15.7 to the global economy by 2030.
See this impressive graph by Statista showing what the AI-driven future will bring us (in million US dollars).
Impact of smart tools for e-Commerce
By 2035 AI has the potential to boost 38% higher profitability rates according to Accenture.
But what use has macroeconomic data for small businesses? You are probably asking yourself, will these numbers actually be about some corporate giants, and not my online shop?
It seems that individual retailers are getting their profits as well.
Personalization strategies trigger 6-10% sales growth for retailers that implement them – that is 2-3 times faster than for other retailers, says BCG report.
So what exactly is being changed by AI and how?
In his book Sales Ex Machina Victor Antonio explains how artificial intelligence is changing the world of selling. There are five major aspects where algorithms help businesses grow.
Price Optimization
AI can suggest your customers an optimal discount according to their purchase history and other demographic data. This way you won’t lose an important lead and will also keep the maximum amount of revenue.
Analytics and Forecasting
Based on the customers’ data, it’s much easier for the machine to predict what’s coming and sometimes deliver unexpected results and pointing to the trends that are easily missed by a human eye.
Upselling and Cross-Selling
Recommending the right items to the right customers at the right time is key. While you can’t always guide them yourself through your website a Smart Recommendation System can always point them into the right direction.
Managing for Performance
Having all your internal data at a glance, AI can make your decision-making processes easy by recommending to focus on the right problems and optimizing the areas that demand it. That includes both the sales staff and procurement management, inventorization and supply chain processes.
Lead Scoring
Analyzing and scoring leads based on their interaction history, social media postings and other historical data gives your sales team a strategic advantage on closing the deals successfully.
Now that we’ve covered the main areas of AI impact for e-Commerce, you might want to check the practical guide to the tools that can help you implement all of it to your store fast and easy.
