Amazon’s Uses of AI to Serve its Customers Better
Source: Artificial Intelligence for the Real World
The term AI (Artificial Intelligence) is the “most” discussed topic in this current business landscape. AI is transforming the business universe rapidly. It has changed the way businesses serve and communicate with their audience. AI has been an incredible assistance for all the industries worldwide.
Mainly, AI can support three important business needs: automating business processes (typically back-office administrative and financial activities), gaining insight through data analysis, and engaging with customers and employees. AI has this incredible capability to process vast amounts of data and use this data for various purposes that allows businesses to significantly enhance their customers’ experiences and offer products and services to the customers to satisfy their persistently changing demands.
What is AI???
AI a service or system that can perform tasks that usually require human-level intelligence such as visual perception, speech recognition, decision making, or translation.
Amazon, a leader in customer experience innovation, has taken things to the next level by reorganizing the company around its AI and machine learning efforts.
Amazon is using AI extensively to enhance customer experiences, to better understand customers’ needs and desires, and serve them better. For instance, AI plays a significant role in Amazon’s product recommendation engine which generates 35% of the company’s revenue. “Using data from individual customer preferences and purchases, browsing history and items that are related and regularly bought together, Amazon can create a personalized list of products that customers actually want to buy”. Amazon tracks customers’ purchases habits, product preferences etc. They gather enormous amounts of data to get a “360-degree view” of an individual customer. That allows them to offer personalized products based on their needs as well as offer new products. Amazon heavily concentrated on applications of AI to better understand their customers search queries and the reason behind a customer searching for a specific product.
It is critical for Amazon to understand what their customers search for and why they are searching to enhance their existing products and define new products.
Certainly, it is worthwhile application of technology that will help to advance Amazon. The advancement of technology is rapidly changing the current business landscape; therefore, it is critical for businesses to stay on top of it to find competitive edge and ensure sustainable growth and profitability. E-commerce companies like Amazon it is critical to understand customer intention and their needs and desires to recommend relevant products and create new products. For Amazon to keep emerging with encouraging innovations to enhance customer experience there is no alternative to AI. This is the TIME of technology, businesses must pace with this trend to ensure their existence in the industry and keep improving their customer experience.
