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"AI technology solves a wide range of business problems and delivers significant returns on investment. However, the unbridled hype generated by the industry, the press and overzealous software vendors creates confusion that makes it difficult for companies to set the right expectations for business outcomes."
For small businesses in particular, AI technology can be a double-edged sword. Not only do you need to manage expectations of AI in your own company (no, it's not a cure-all for all your problems), but you also need to find an AI software system that offers real value. This can be tricky, given the countless vendors out there exploiting myths and misconceptions to make a killing.
So how can small businesses reduce their risk of AI failure? In short, by focusing on practical applicability . By focusing on the most practical uses of artificial intelligence for small businesses, you can control the scope of your AI system implementation, make informed choices among your software options, and set realistic goals to measure your success.
In this article, we look at three such use cases for artificial intelligence where AI provides real and immediate value to small businesses rather than promises for the future. Each of these use cases is a worthwhile focus for purchasing your first AI solution.
3 Artificial Intelligence Application Areas
Practical application area 1: E-commerce
In the wake of the COVID-19 pandemic, many small businesses have begun to offer their products or services online. As a result, quite a few were suddenly and unprepared and often rather involuntarily forced to delve deeply into the topic of e-commerce.
E-commerce or online store platforms not only provide companies with the basic technologies for selling goods online, they also use artificial intelligence in a number of ways that help small businesses increase their sales and reduce costs:
Using language processing and autocomplete, AI can also process customers' confusing or misspelled search queries and suggest the products they want. According to one study, simply adding an autocomplete feature to your search bar can increase sales by 24% .
It's not only on major platforms like Amazon that you'll find intelligent product recommendations that israel telegram data personalize the shopping experience based on data from customers' browsing behavior, searches, and previous purchases. Customers are three times more likely to convert after just one interaction with a recommendation .
By analyzing historical sales data, seasonal trends, and forecasts, artificial intelligence can optimize inventory management so you always have the right amount of the right goods in stock. By reducing the number of out-of-stock or overstocked items, you can reduce your overall inventory costs by 10% or more .
Customizing product recommendations for customers
Customizing product recommendations for customers in Magento Commerce ( Source )
If you already have an ecommerce platform with AI capabilities but haven't deployed it yet, ask your vendor if you have the foundation (and data) you need to get started. If you don't have an ecommerce platform yet, keep AI capabilities in mind when selecting one.
Possible goals for AI implementation in e-commerce:
Reduce the number of shopping cart abandonments
reduce storage costs
Increase revenue per customer
Practical Application Area 2: Customer Service
Customer service is one of the areas where small businesses have a clear advantage over larger competitors. According to a survey by ZenDesk, 71% of customers expect.