eStar’s chief strategy officer, Matt Neale, discusses how AI is changing what it means to manage e-commerce.
The landscape of eCommerce is undergoing a significant transformation, driven by the burgeoning power of Artificial Intelligence (AI). A recent report by Microsoft, and the Tech Council of Australia found that Generative AI (GAI) could contribute between $3 billion and $9 billion to Australia’s retail sector by 2030. Those are large numbers, and whilst the wide variance implies an equally wide margin of uncertainty, it remains a strong point that GAI is set to change the retail landscape in Australia in a comparatively short timeframe.
The rise of Generative AI (GAI) is transforming eCommerce management by significantly reducing the effort required for creating engaging content, managing online merchandising, and presenting products attractively. This technology surpasses traditional, time-consuming methods by analysing vast data sets in real-time, allowing businesses to dynamically adjust product offerings, prices, marketing strategies, and content.
Additionally, with unemployment at record lows, GAI addresses the current challenge of hiring and retaining skilled labour by acting as a valuable productivity tool and efficiency gain for existing teams. It can be used to automate repetitive tasks, assist in building out content and promotional material, freeing up human teams to focus on higher-level tasks demanding creativity, emotional intelligence, and strategic thinking. This human-AI collaboration optimises productivity and enhances the human touch when needed.
GAI empowers businesses of all sizes by democratising access to powerful tools, where historically, business with capacity to retain large teams of highly skilled workers held the advantage, GAI is equally accessible to all. Established companies can refine their operations, while newcomers can level the playing field and compete effectively. The key value drivers of GAI lie in faster time to market, better customer support, more personalised experiences, and streamlining of backend operations – all leading to a competitive edge.
It's important to remember, however, that the creative process involves intangible human elements that GAI cannot easily replace. Creativity, innovation, and artistry are essential to many segments of the retail industry - it’s what differentiates brands and products, and it's crucial to maintain that human touch. GAI can supplement, and enhance, but will not replace that innately human element of creativity and Emotional Intelligence.
Aligned to this, a key benefit of AI-powered solutions is their ability to respond more rapidly to changing market trends and customer preferences. The ability AI tools have, to analyse and absorb massive amounts of data into their models, including social media conversations, online reviews, and consumer behaviours, allow them to provide insights into preferences, trends, and demands. This new level of insight can help retailers understand the demographics, lifestyles, and behaviours of their target audience, which is essential for creating effective marketing strategies.
Unlike traditional methods of content creation and product curation, which can be time-consuming and inflexible, AI models can use the vast amounts of data at their disposal, adjusting product offerings, price points, marketing strategies, and content accordingly. This allows businesses to stay ahead of the competition and deliver a more dynamic and personalised shopping experience to their customers.
As major vendors actively integrate GAI into existing platforms, this technology is poised to become a pillar of eCommerce success. Retailers who proactively learn and experiment with GAI can unlock cost reductions, enhanced productivity, and a sustained competitive advantage in the evolving world of online commerce.
Effectively integrating generative AI into eCommerce management can be a significant competitive advantage. Businesses that are proactive in adopting this technology can benefit from reduced costs, increased efficiency, and enhanced customer satisfaction. This translates to a stronger market position and continued growth in the ever-evolving world of online commerce.
The incorporation of AI isn't just altering the tools used in eCommerce management; it's redefining the entire approach. By embracing AI and its innovative capabilities, retailers can unlock new opportunities to optimise operations, increase their reach, and deliver exceptional customer experiences. Now is the time for businesses to actively assess their activities and begin testing and learning how generative AI can empower them to reduce costs, enhance productivity, and maintain a competitive edge in the dynamic world of eCommerce.