Sentient AI and Its Role in Personalized Merchandising

Artificial Intelligence (AI) has steadily been making more of an impact in marketing for the last several years. Sentient AI has proven especially useful to businesses for the area of personalized merchandising. The technology uses algorithms to read and anticipate what a given customer, or demographic of customers, enjoys looking at and buying. This technology can then bring to the forefront simplified lists of products that the customer may wish to purchase, and therefore drives sales by showing consumers what they want.

The advantages of AI in personalization manifest in multiple ways. Companies often employ some form of AI to streamline their operations where it comes to the customer’s experience. A frequent use of AI is in the often-clicked “More Like This” bar. Nearly every online retailer has some form of this personalization method. Amazon, the world’s current largest e-commerce retailer, lists both personalized recommendations as well as “top” and “trending” sellers on the home page. The goal of these personalized ads is to show the consumer items similar to what they seem to like, and encourage them to purchase more by bringing up their favorite styles and trends. Many AI systems have been developed to send automated emails to customers who sign up for the service. These emails often market trending, seasonal, sales, and especially “More Like This” items that the customer has previously purchased online. Retailers such as Ebay often use emails to call to customer’s attention items that they may wish to buy. These methods are proven to be effective in leading consumers to the products that they want.

Another increasingly popular use for AI in personalized merchandising is in customer service bots. Automated customer service representatives are growing ever more intelligent, some even seeming to be sentient as they are developed to sound more and more human-like. ShopDirect, a major online retailer based in Liverpool, England, is in the process of developing an automated customer service system that uses an extraordinarily intelligent chat bot. Their work with IBM aims to develop an AI system that can understand customers’ emotions and react accordingly.

As technology grows more advanced, AI systems grow more refined and their algorithms more streamlined. It becomes ever easier for retailers to sort out which items their individual customers want. Personalized merchandizing is a big step towards bringing e-commerce into the limelight as online shopping gets easier and smarter. Visit fundacity.com to know more about Sentient.