Amazon e-commerce
On the 23rd Anniversary of Digit Magazine, we invited stalwarts and leaders from the tech industry to give their perspectives on the role of AI (Artificial Intelligence) in India. Mr Rajeev Rastogi, Vice President of International Machine Learning at Amazon, shares his insights on the growth of the e-commerce sector in India, and the impact that the growth and increasing adoption of AI will have on it.
According to Mr Rastogi, “In India, where cultural diversity presents a unique challenge, AI and ML can cater to individual needs effectively.”
Here’s the full article below. The article was originally published in the June 2024 AI Special Anniversary issue of Digit magazine.
Impact of Artificial Intelligence on E-commerce in India by Mr Rajeev Rastogi, Vice President of International Machine Learning at Amazon
Artificial intelligence (AI) has impacted almost every industry, from healthcare to finance, by transforming traditional methods and improving efficiency. The e-commerce industry in India is no different. In recent years, e-commerce has grown quickly, and AI has played a big part in this change. As more Indians shop online, AI is helping to personalise and improve their shopping experiences, boosting sales and enhancing customer service. This not only benefits regional areas in India but also contributes to the growth of the Indian economy.
AI’s primary contribution to e-commerce is the personalisation of the shopping experience. Machine Learning (ML) models analyse user data, such as browsing patterns and search queries, to predict customer preferences. For instance, AI-driven personalization tools can suggest products based on a customer’s past behaviour, enhancing the likelihood of purchase.
In India, where cultural diversity presents a unique challenge, AI and ML can cater to individual needs effectively. E-commerce platforms leverage these technologies to break through the diverse cultural demographics, tailoring the shopping experience to suit regional preferences. This includes offering regional language support and generating product recommendations that resonate with local tastes.
AI and ML enhance various aspects of the customer experience, making online shopping more convenient and enjoyable. At Amazon AI models predict network conditions to serve streamlined pages, ensuring a seamless experience even on slow networks. AI also scales language translation efforts, enabling customers to shop in their preferred language; for instance, a marketplace like Amazon supports eight languages, with AI modifying spellings based on phonetic similarities.
Advanced search algorithms account for query semantics, correct spell errors, and support transliterated and colloquial usages, ensuring customers can easily find what they are looking for, regardless of the complexity or regional language of their search query. Machine Learning (ML) algorithms recommend products based on past behaviour and preferences, providing a personalised shopping experience that boosts customer satisfaction. Additionally, AI-powered question-answering engines and review highlights help customers quickly find essential product information, aiding their decision-making process.
AI is also transforming the seller experience on e-commerce platforms, making it more accessible and efficient for small businesses that often find online selling intimidating. Tools such as Amazon सह-AI, an AI-powered personal digital assistant assists sellers with tasks such as registration, listing, and advertising, thereby empowering entrepreneurs and facilitating wider e-commerce adoption. Additionally, AI and ML offer various benefits to sellers, including demand forecasting, which helps manage inventory efficiently by predicting product demand. AI also enhances catalogue management by detecting and correcting defects like incorrect product titles and descriptions, ensuring accurate information and reducing returns. Moreover, ML algorithms identify relevant products for specific events and recommend deals, enabling sellers to capitalise on seasonal trends and customer preferences. Generative AI further aids sellers by creating high-quality product listings, saving time and ensuring accuracy.
Logistics network for e-commerce portals integrate AI and ML technologies comprehensively, optimising e-commerce operations and logistics for enhanced efficiency and sustainability. These technologies are instrumental throughout the entire logistics process, from product search to final delivery. For instance, AI is used to validate customer addresses, ensuring accurate delivery by suggesting corrections and selecting the most cost-effective packaging for each order, thereby minimising waste and environmental impact. Additionally, AI-powered solutions monitor the quality of fresh produce, reducing food waste and ensuring that only the finest products reach customers, further exemplifying the role of AI and ML in revolutionising e-commerce logistics.
Several innovations, once considered science fiction, are now powered by ML, such as talking speakers that answer questions, drones that deliver packages in 30 minutes, and stores without checkout lines or cashiers. These technologies help understand consumer preferences and predict trends more accurately, bridging the gap between online and offline shopping experiences.
AI and ML integration in customer-brand interactions is a game changer. Consumers increasingly choose the convenience of online shopping over traditional factors like competitive pricing. Optimising AI and ML tools in e-commerce is crucial for delivering personalised, accessible products and services that make sense to the customer. This includes features like augmented reality, enabling customers to virtually place items in their real environments to see how they would look before purchasing.
The future of e-commerce will be shaped by the advancements in AI and ML technologies. These tools enable a deeper understanding of consumer preferences and more accurate predictions of consumer trends, thereby bridging the gap between the online and offline shopping experiences. In essence, the integration of AI and ML in customer-brand interactions represents a paradigm shift, with consumers prioritising convenience over traditional factors like competitive pricing.
Optimising AI and ML tools in e-commerce is crucial for delivering personalised products and services that resonate with customers. By leveraging these technologies, businesses can ensure that their offerings are easily accessible and tailored to individual preferences. Moreover, the evolution of augmented reality and AI ML tools enables customers to experience products in a realistic manner, transcending traditional online shopping experiences. For instance, customers can virtually place furniture in their living spaces, providing a tangible preview of their purchase.
The integration of AI and ML in e-commerce heralds a new era of customer-centric shopping experiences. By harnessing these technologies, businesses can cater to evolving consumer needs and preferences, driving growth and innovation in the digital marketplace.
