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AI Use Cases

A collection of over 250 uses for artificial intelligence

A continually updated list exploring how different types of AI are used across various industries and AI disciplines,including generative AI use cases, banking AI use cases, AI use cases in healthcare, AI use cases in government, AI use cases in insurance, and more

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Virtual shopping assistant and chatbot

Introduction

In the cross section between E-commerce and Artificial Intelligence, Natural Language Processing has changed the process of shopping and engaging with websites. This has been made possible by NLP AI where virtual shopping assistants and chatbots have become a common feature in the e-commerce sector. These technologies not only allow the users to have a more enhanced and efficient shopping experience but also enable the businesses to enhance and improve their work flow. With the growth of e-commerce, it is anticipated that the application of AI and NLP will also grow.

Challenges

Although it presents numerous opportunities, the application of NLP AI in the e-commerce context is not without issues. A major challenge is understanding and dissecting the various languages and dialects of human communication. This is further made difficult by language factors such as slangs, acronyms, and colloquial terminologies. Another challenge is to ensure the correctness of AI answers particularly when dealing with difficult questions. There are also issues of data privacy since such technologies involve the collection of large amounts of information about users. Also, such technologies are costly to develop and maintain, which is a hindrance to many businesses.

AI Solutions

These challenges can be addressed by AI solutions especially NLP technologies. For example, there are current state-of-the-art algorithms in place that are able to provide better language processing capabilities as they are able to identify and understand different aspects of language. Some of the machine learning algorithms are also being used in an effort to improve the quality of AI responses. In regard to data privacy, the developers of AI are creating ways through which user data can be properly analyzed without infringing on the privacy of the user. With regards to the cost barrier, the current trend that is being embraced by many companies is the provision of AI as a service so that businesses can access the AI technologies without having to incur huge costs. Some of the companies which provide cloud based NLP services include Google, Amazon and IBM which allow businesses to incorporate AI in their activities at a cost.

Benefits

There are numerous advantages of applying NLP AI in the e-commerce sector. For the users, it offers a more convenient and efficient way of shopping, it helps to filter the products more easily and provides immediate customer service. For businesses, it increases productivity, enhances the quality of customer service and generates a better understanding of customers’ behavior. Also, it may result in higher sales and customer satisfaction. It can also help to alleviate the burden on customer service teams, so that they can concentrate on dealing with more challenging issues.

Return on Investment

The ROI from NLP AI can be variable depending on the particular application and the way it has been integrated. There are, however, a number of research that has been conducted which have revealed tremendous returns. For example, a research done by Accenture revealed that AI could boost profitability within the retail industry by up to 60%. Also, a study by Juniper Research stated that chatbots can decrease the operational costs by as much as 30%. In addition, as identified by Gartner, the companies that have already applied AI in sales have been able to increase the number of leads and appointments by 50% while cutting the costs by 40-60%.

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