Artificial Intelligence (AI) is all the rage right now, with claims that it can do everything from reading your pet’s mind to ending world hunger, and pretty much everything in between. But let’s get real and move past the buzz. When it comes to your business, it’s crucial to figure out how AI and its subset, Machine Learning (ML) can actually be put to work. 

You might be wondering: Can you really trust AI to be safe and effective in the digital commerce world? Is investing in it the secret to staying competitive?  In this short article, we’ll dive into the world of AI/ML and the Fourth Industrial Revolution. After reading this article, you will understand what it is, and how you can benefit from it.  

What Is AI And ML?

Before ChatGPT became a common topic in our daily conversations, our idea of AI often revolved around characters such as C-3PO from Star Wars, Data from Star Trek, and Sunny from I-Robot. These AI characters, although fascinating, were sometimes portrayed as unpredictable and with a desire to take over the world. While more friendly versions of these AI might someday be achievable through “General AI,” a long-term scientific pursuit, this article will focus on another type of AI known as “Narrow AI.” These AI and Machine Learning (ML) techniques excel at specialized tasks, often outperforming humans. Think of them as super calculators capable of calculating PI to the 100th decimal place. They are safe, efficient, and can boost your competitiveness when used effectively. 

Here are different types of AI capabilities that are mature and available today: 

• Prediction and forecasting: Using past data to make educated guesses about the future.  
• Classification: Sorting objects into groups based on their features. It’s similar to categorizing trading cards by their different traits.  
• Recommender systems: Analyzing past choices, such as movies or purchased items, to generate recommendations. 
• Natural Language Processing (NLP): Understanding and analyzing human language to enable machines to comprehend and interact with it. 
• Generative AI or Gen AI: Creating computer systems capable of ingesting vast data sets and producing creative and original content. It’s like opening a treasure chest of creativity and productivity, and it’s like nothing we’ve ever seen before in human history. It uses natural language processing and machine learning to create new material that looks like it was created by humans.All of these AI models are mature and can be put to use for businesses quite affordably. 

Practical Benefits

At AAXIS, we have been working with Machine Learning and Artificial Intelligence (AI) for over 10 years and have focused on Generative AI for the last year. Based on our experience here are a few tools and processes to achieve greater business value. 

Demand forecasting allows us to predict future demand for products, enabling businesses to optimize inventory and ensure they have the right amount of stock on hand. Businesses also use it to figure out what prices they should set to stay competitive. And it helps the whole supply chain run smoothly and without unnecessary costs.  

Classification analysis allows us to predict customer churn and take preventive actions before it is too late. Classifying customers into different segments based on behavior, demographics, or preferences helps us target marketing and personalized offers. Also, determining whether customer reviews and feedback are positive, negative, or neutral can help us gauge product satisfaction and identify areas for improvement. After an order is placed, classifying transactions as legitimate or potentially fraudulent protects the business and customers from unauthorized activities. 

Recommender systems in digital commerce can suggest products or content your customers are likely to love. This not only enhances the customer experience but also boosts sales and customer loyalty. By offering personalized recommendations, businesses can increase engagement, improve conversion rates, and foster long-term customer relationships. It’s a win-win for both customers and commerce platforms. 

Semantic Search allows customers to find products easily, even if they don’t remember the exact name. It’s like a smart shopping buddy who understands what you mean. Plus, you can just ask for help in your own words, and it’ll find you the right answers. It’s all about making things simpler and more satisfying for customers. 

Generative AI creates serious productivity boosts and cost savings for merchandisers, marketers, and support folks Foundational Generative AI Models like Google’s PaLM Bison, OpenAI’s GPT, Cohere, MidJourney, Stable Diffusion, and Dal-E-2 are like our superhero helpers, supercharging productivity. 

Merchandisers can quickly scan the catalog for errors and whip up product descriptions with just a click. Marketers dive into user data using everyday language. They can also clean up and grab info from messy emails or old invoices, making their jobs a whole lot easier. Also, Support teams can tag the most important customer issues automatically and even draft responses in no time. 

In a nutshell, ML and AI technologies, in our experience, serve as powerful tools for modern businesses. They boost customer satisfaction and loyalty at an affordable price, while also delivering cost savings. With these powerful AI models, we can focus on the tasks that require higher level thinking. 

Next Steps

In conclusion, the world of artificial intelligence, once the realm of science fiction, is now readily available for businesses of all sizes. AI, with its predictive power, creative capabilities, and personalized recommendations, offers immense benefits in enhancing efficiency, boosting sales, and improving customer experiences. 

However, ignoring this transformative technology can be perilous. In today’s fast-paced digital landscape, businesses that fail to embrace AI risk falling behind their competitors. The perils include decreased efficiency, missed opportunities, and an inability to adapt to changing customer expectations. Business should be proactive and integrate AI solutions into their operations, harnessing the power of prediction, personalization, and automation. This evolution is not just an option; it’s a necessity. It’s time for businesses to recognize the potential of AI, adapt their models, and leverage this technology to shape the future of commerce.  

The choice is clear: embrace AI and evolve, or risk becoming obsolete in an increasingly AI-driven world. 

I would like to extend my sincere gratitude to Gerry Palaganas, Prashant Mishra, Heath Brownsworth, Jennifer Sabin, Marcelo Dujovne, and Estaban Bocic for their valuable contributions and support. This article would not have been possible without their input. Your efforts have been greatly appreciated. Thank you.