AI Transformation in Ecommerce: From Efficiency to Revenue Growth with GenAI
Artificial Intelligence has predominantly been employed to drive efficiency. Tasks such as process automation, data analysis, supply chain optimization, and customer service enhancements have been the focal points, leading to significant cost savings and operational improvements. While these initial use cases have proven valuable, they primarily streamline existing operations rather than creating new avenues for business expansion. However, the true transformative potential of Generative AI (GenAI) lies beyond efficiency. By shifting focus towards solutions that drive greater reach and open up new revenue streams, businesses can leverage GenAI to unlock unprecedented growth opportunities. With GenAI, eCommerce platforms can revolutionize customer engagement, making discovering, learning, and purchasing frictionless.
By leveraging GenAI to create personalized shopping experiences, customers can interact with virtual shopping assistants just like they would with a helpful salesperson in a store. This conversational commerce allows customers to ask questions about products at the moment of decision, virtually try them on, receive personalized recommendations based on their needs and preferences, and even complete purchases—all within the chat interface.
The Business Opportunity of Conversational Commerce
Conversational commerce presents a significant business opportunity due to several factors, including the growing adoption of messaging apps, the increasing demand for personalized shopping experiences, and advancements in artificial intelligence and natural language processing technologies.
According to a report by Grand View Research, the global conversational AI market size was valued at USD 4.8 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 21.9% from 2021 to 2028. While this encompasses all applications of conversational AI, including customer support and virtual assistants, it highlights the growing demand for conversational interfaces across industries.
In the United States, retail eCommerce sales are projected to reach 1.2 trillion U.S. dollars in revenue in 2024, accounting for 15.9% of total retail sales. As conversational commerce becomes more prevalent, it has the potential to capture a significant portion of this market.
Where to Start?
- Identify High-Impact Areas: Identify steps in your path to purchase where GenAI can create the most significant impact on reach and revenue. Focus on high-potential use cases that align with the business’s strategic goals.
- Partner with Technology Companies: Partner with technology companies such as NewEcom.AI to stay at the forefront of GenAI advancements. Collaboration provides access to cutting-edge technology and innovative ideas.
- Pilot and Scale: Start with pilot projects to test the feasibility and impact of GenAI solutions. Use insights from these pilots to refine the approach and scale successful initiatives across the organization.
- Monitor and Adapt: Continuously monitor the performance of GenAI initiatives and be ready to adapt strategies based on real-time feedback and market dynamics.
Contact us or schedule a demonstration to see how NewEcom.AI increases reach and revenue for long-term growth. Unlock new opportunities and stay ahead in a competitive landscape.
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