How Amazon Uses Artificial Intelligence in E-commerce

Have you ever wondered how Amazon is so accurate about its consumer preferences and puts up recommendations according to your needs? It is because Amazon uses artificial intelligence in its e-commerce platform.

Amazon is an e-commerce giant that has always tried to keep up with new trends in technology. Amazon looks upon artificial intelligence as one such trend. Since it was an early adopter of artificial intelligence and automation, Amazon always had a leg up in adopting AI to increase the efficiency of its business operations. It has been putting a lot of efforts internally while also utilizing AI to improve its consumer experience.

To better comprehend customer search queries and the reasons behind their product searches, Amazon uses continuous AI in a number of different ways. It's essential for an e-commerce company to understand why a client is searching for a product, in addition to knowing what the consumer searched for, in order to provide pertinent recommendations to the customer.

In research done by one of the students at an MBA college in Kolkata, it was found that Amazon.com is the most visited e-commerce site in India with more than 295 million visits across desktop and mobile devices. With such a huge search volume, Amazon has outnumbered the other e-commerce platforms.

Let us now look at how Amazon employs artificial intelligence in its e-commerce platform.

1. Personalised Recommendations

By effectively anticipating customers' requirements through personalised product recommendations, Amazon is able to maintain customer satisfaction while gaining a larger part of the market. For this feature to function, Amazon uses item-to-item collaborative filtering.

The concept behind collaborative filtering is that people who have previously purchased an item will do so again and that they will like the same kinds of things. Recommendations are generated by the algorithm solely based on data from rating profiles for various people or objects.

2. Voice-enabled shopping experience through Alexa

Instead of clicking or touching a screen, Amazon claims that its voice assistant, Alexa, enables users to browse products, make purchases, and navigate the checkout process. According to Amazon, this enables users to manage their checkout process without having to use their hands.

By allowing users to create shopping lists and receive Alexa recommendations, this AI application seeks to make Amazon shopping more convenient for users and give its consumers an offline shopping experience.

3. Amazon Go

The latest usage of artificial intelligence in the Amazon world is Amazon Go. More effectively than any other business now in operation, these stores automatically record each purchase made by a customer.

Customers' smartphone cameras collect information about their shopping trips, which not only benefits Amazon Go but can also be shared with the machine learning team for further advancement. This data is further used to enhance the customer shopping experience on its e-commerce platform.

4. AI in Amazon Warehouses

By automating the ability to predict consumer demand, evaluate product availability, optimise delivery routes, and customise customer communications while tracking the entire supply chain, Amazon uses AI to increase supply and make sense of the data and maintain its warehouses.

In this way, Amazon eases the process of delivery and gives a delightful shopping experience to its e-commerce consumers.

5. Use AI to improve customer relationships

Whenever we purchase something from Amazon, there is continuous communication that takes place between Amazon’s team and you. Here’s where AI plays its part.

With its strong data analytics solutions, they are easily able to track online sales analytics and customer profiles. Additionally, these AI-solutions of Amazon deliver consumer-tailored communications.

With a personalised user experience, this technology helps to increase sales and improve customer relationships.

Artificial intelligence has taken over the world, and so has Amazon. By just being introduced as a book-selling company to now becoming an e-commerce giant, Amazon has become a household name, selling everything under the sun. Artificial intelligence has definitely helped Amazon in enhancing its e-commerce platform.

With AI taking over the world, there are a lot of untapped job opportunities that are available in the fields of business analytics and data science. To take up these opportunities, you must have ample knowledge and experience in this field.

With an MBA in Business Analytics and Data Science, you will be able to gain expertise and knowledge in the field of data science. The Bengal Institute of Business Studies is an MBA college in Kolkata that provides an MBA in Business Analytics and Data Science. With this course at BIBS, you will get guidance from industry experts and tap high-paying work opportunities.