What are the Advanced AI Technologies Shaping the Future of Commerce?

Artificial intelligence is not a new term. Every major industry is utilizing AI in multiple areas to boost their business operations. However, the AI models we were using earlier have been transformed with the birth of advanced technologies that have taken the world by storm. The advancements in AI have opened a gateway for new opportunities for every industry, especially in Commerce. From product designing to customer service, these technologies have redefined the way products are bought and sold. If you are a firm looking for AI advancements in your business processes, you can hire a professional AI development company to facilitate this requirement. Additionally, in this blog, we will discuss the advanced technologies that will reshape the future of commerce.

Key Advanced AI Technologies Shaping the Commerce Ecosystem

Generative AI

Generative AI (Gen AI) is the most popular AI model that can generate new content by analyzing existing data. This includes generating images, text, and even product designs. Generative AI leverages advanced NLP and ML algorithms to understand and process complex language structures, interpret data patterns, and then generate new, unique responses based on patterns and data on which it has been trained. Unlike traditional AI, which relies on programming and rule-based systems, generative AI has the ability to produce outputs independently, making it ideal for tasks that require creativity and ingenuity in the development process. The most common use case of Gen AI in commerce in the current state is product designing and customer services via personalized bots that can offer hyper-personalized responses to each customer’s queries. The firm you hire for Commerce solutions will build custom AI-powered bots for your online store to enhance customer service and create chances of repeat business.

Federated Learning

Federated Learning is a technique that allows multiple organizations to collaborate on training a shared AI model without exchanging their individual data or investing unnecessarily in building a new AI model from scratch for that matter. This method addresses privacy concerns by keeping data decentralized while still benefiting from collective learning. Google’s FL system serves as an example of a secure distributed learning environment for B2C (business-to-consumer) applications where all parties share the same data features and collaboratively train an ML model.

In the commerce world, several enterprises could collaborate to enhance their fraud detection systems using federated learning. Each platform can contribute to the model's development by providing insights from its own transaction data, thus improving the system's ability to detect fraudulent activity across different environments without exposing confidential customer information.

Edge AI

Edge artificial intelligence refers to the deployment of AI algorithms and AI models directly on local edge devices such as sensors or Internet of Things (IoT) devices rather than relying on centralized cloud-based systems. This approach allows for faster data processing and real-time decision-making, as it eliminates the latency and dependency associated with sending data to and from the cloud.

For example, a retail store that comprises smart shelves equipped with sensors and cameras can utilize edge AI. Integrated with edge AI, these devices can analyze product levels and customer interactions in real time, allowing for immediate inventory management, personalized recommendations, and enhanced in-store shopping experiences. You can also read this blog, which discusses the impact of Gen AI-based shopping assistance in eCommerce.

Conclusion

AI has taken every major industry by storm, and eCommerce is no exception. Although AI has been with us for many years now, its complex, advanced models (Gen AI, Federated Learning, and Edge AI) are still new and under experimentation. However, the eCommerce firms that will utilize these technologies in their business processes are poised for long-term success. Are you ready to integrate Advanced AI capabilities into your business and boost its growth? Then, the first step is to hire a professional AI development company. They will build a custom AI solution that aligns well with your specific needs for profitable outcomes.