Why is search centric AI changing the e-commerce landscape?

It is very common for customers to abandon shopping experiences because the product results shown are irrelevant. Many e-commerce platforms are trying to enhance the part AI plays in searches to the extent, where the e-commerce search engines should be thinking the way humans do. Now that there are multiple platforms in the market and the race is to be better than your competition. The search results need to narrow, contextualise and ultimately improve the outcome. Lately, plenty of search results are increasing their visual elements. The basic idea is to configure AI and machine learning in such a way that it starts contemplating as you do. The leveraging of machine learning and AI to automatically prioritize and label content based on the features of the image or description. These labels can also be modified to read and use assets like keyword tags. 

Technologies like AI are giving the e-commerce business a competitive edge and it is at the dispersal of developers and businesses of smaller and larger magnitude. The most common visual recognition platform is Google Lens, where you can take an image and find similar results. One of the latest examples of visual recognition is also used by Pinterest. You can select any image and then ask Pinterest to show you similar results. The image recognition helps its AI to configure and procure similar images. The shopping experiences are becoming more refined, the shoppers are rapidly saying bye to impulse control as the innovative visual search capabilities are motivating them to search more.  

Ai is helping shoppers to find complementary products regardless of size, shape, material, color and even brand. The capabilities of these softwares is astounding. These softwares collect visual imagery from the uploaded product and collect visual cues to find products that match. AI provides an ease to a level where the shoppers don’t have to search for their desired products specifically. The top results for their past searches and habits accumulate to provide a logical list that matches their search history and product search. For example, if you like a pair of shoes on someone, and you have a visual, you can easily search with the AI, as it enables you to find similar items through online/e-commerce stores. 

With the dawn of the new shopping era, the expectations of shoppers is increasing by the hour. They want the time between demand and supply to be minimized. It is becoming more and more difficult to satisfy customers without compromising on quality. 

In India, many big names such as Flipkart are also experimenting with AI and machine learning. They are navigating through qualities of catalog, size recommendations, and even avoiding fraud orders. The recommendation algorithm has to work like the best salesman in the company i.e. the one who is great at upselling. The buyer’s behavior is playing a major role in these search results. These outcomes are helping to elevate the customer experience which can help in increasing sales. There are also options to compare prices, features, and descriptions. These comparison helps you to put together all the product variants you are interested in and choose the best option. 

With endless categories on e-commerce websites, it becomes a tad bit difficult for any business to keep an eye on the live inventory. AI is changing the ways of inventory management. You can easily understand it this way, as soon as the last item is purchased, the system deems it out of stock. With the help of AI, organizations can keep a track of all the orders, it can help in managing the inventory in warehouses and ensure that the organization has enough stock, particularly in the cases of products which are in high demand. 

Security has always been a concern while shopping online. Many customers fear that their data can be misused. The importance of cyber-security in the e-commerce industry is the need of the hour. AI is helping to a great extent by identifying red flags and eliminating the chances of fraud.

AI is being used by various e-commerce platforms like Amazon, Flipkart and Taglr in the form of the chatbox, inventory management, behavioral insights, strategizing and contextual messaging. We at Taglr firmly believe that AI and machine learning will bring a great difference in profits and growth. We are excited to see how the Indian e-commerce platforms will be procuring new techniques to incorporate AI and make it a part of their business. 

Is AI Conceived To Be A Threat Or Convenience To The Fashion Industry?

A well established industry like fashion is still on the lookout for modernizing itself. AI is inherently changing the fashion industry at every level of the supply chain(design, manufacture, logistics, marketing or sales). AI is transforming and adding more value to the way apparels are manufactured or the way they are being sold. The global value of the fashion industry is amongst the largest, estimated at around 3 trillion dollars as of 2018 and with a market share of 4% globally. One of the major reasons for this is the individuality that buyers connect with, while purchasing clothes. As AI is helping the industry grow it is also raising a few challenges. In this blog we will understand the changes AI has brought and the challenges it has created.  

 

The convenience of AI: 

Fashion industry has to give weightage to demands and brand management as much as it gives to designing and manufacturing fashion products. Many brands are regularly finding innovative ways to get their products for buyers to see and create brand awareness to generate demand. Plenty of brands using AI and machine learning to increase their buyers’ shopping experience, refine the sale systems with automation, and grow the sales procedure with predictive analytics and guided process. Plenty of fashion sites are using AI like chat boxes and automated response to FAQ’s which are making the user experience better and helping them with post sale services. These conversational interfaces also help brands to collect data and understand patterns, trends and suggestions that help in upselling. The chat boxes are capable of solving small and generic problems providing customer satisfaction.        

AI is also helping the E-commerce fashion brands with the help of Augmented reality. The buyers can shop with smart image recognition system where they can take pictures of clothing and try on their virtual self. 

The constant changes in the designing of apparels are also making the most of AI. The designers and retailers have to keep in mind the upcoming trends and fashion waves to predict and design accordingly. They have to also be careful that while being in production the trend should not go out of style. This is where AI comes into play, it help manufacturers and designers to understand the seasonal trends and plan accordingly based on the data of purchases and searches. It is not always accurate as the sale can be dependant on many factors and can vary from the predicted numbers. However, it is estimated that with the help of AI the errors can be reduced up to 50%, in hindsight that are good odds for the designers and the manufacturers.    

 

The Challenges: 

As AI is making lives easy it has also raised a few new challenges for the industry to face. As for the designing field, it often includes the intricacies of the artistic works. The hand woven materials, embroidery and regional designs. With the dawn of AI, many brands are opting for machine made designed as they are affordable and require less manpower. As for big labels, they still opt for hand made designes and work so that the brand value increases. It catapults the prices and makes the product premium stating the amount of hours individuals have put in the product. Since it is not an economic option, it is not possible for common retail sellers to source their apparels from artisans. Hence, it is putting people out of jobs and somewhat compromising on the value of the art that had made it famous in the first place. In addition to that it is also increasing the prices as anything hand-made makes the product exotic in the global market. 

 

Conclusion:

It is crystal clear that in the future of fashion industry, AI will be involved for its advancements and machine learning technology. Manufacturers, designers and retailers will  leverage AI to uplift cost efficiency and give a better shopping experience to the shoppers. If implemented correctly AI does provide a competitive advantage by using every data at its disposal. There is a slight worry as where it is taking the art of designing and is it making it completely artificial by eliminating the human touch. We have to wait and observe.   ')}