Major brands always lead the way in embracing innovative trends. Of course, they have full-fledged teams of professionals and financial resources to implement the boldest ideas. How can examples from giants help you if you have a small or medium-sized business?
At the very least, it can inspire you to innovate in your business. Additionally, many AI-powered assistant services are available to everyone. You need to understand what you need. In this article, I will show you how adeptly major brands integrate artificial intelligence into their operations. Be inspired and take notes.
How AI is transforming the eCommerce industry?
The e-commerce industry is experiencing tremendous growth. It is projected that this year, the global e-commerce growth rate will reach 10.4%, amounting to an estimated $6.3 trillion in global sales. Additionally, exponential growth in online shopping in the United States is expected, going from $907.9 billion in 2022 to $1.4 trillion in 2025.
Some of the key values that artificial intelligence brings to e-commerce companies include increased productivity through automation and improvements in critical business aspects such as decision-making, customer experience, and innovation in products or services.
Indeed, AI is a useful tool for optimizing operations and boosting sales. However, without an understanding of what it is and how its components work, companies may struggle to harness AI for growth.
By 2030, the global market for AI-supported e-commerce solutions is projected to reach $16.8 billion, indicating a Compound Annual Growth Rate (CAGR) of 15.7% from 2021 to 2030.
Therefore, integrating AI is an initiative that can prove beneficial for e-commerce companies. Thanks to advancements in artificial intelligence, e-commerce companies are now better equipped to offer their customers an enhanced experience. AI is also a valuable tool for fraud prevention, inventory management, and automating repetitive tasks. However, a more in-depth study is needed to understand and successfully implement it in your business.
For more details on the role and trends of AI, refer to our previous article.
Now, let's move on to the main section of our article - examples of how major brands use AI to achieve commercial success.
How are Big Brands using AI?
When contemplating Amazon, it's easy to focus on its expansive eCommerce dominance. However, the corporation also stands as a noteworthy contender in the realm of artificial intelligence (AI). Amazon has seamlessly integrated AI into its operations for an extended period, displaying a consistent commitment to innovation. A prime illustration of this is found in Amazon's employment of AI within its recommendation engine.
The AI engine leverages customer data to furnish tailored product recommendations and enhance search engine results. What sets Amazon's AI apart is its ability to personalize suggestions by discerning the underlying intention behind customer queries. Furthermore, Amazon employs AI to optimize its logistics operations, introducing efficiency into the intricate web of product distribution.
The AI-driven logistics entity at Amazon goes beyond mere automation; it anticipates customer demand through predictive algorithms and strategically routes products accordingly. The profound impact of AI on Amazon's eCommerce triumph is evident, illustrating its pivotal role in delivering a personalized and efficient customer experience. Given Amazon's substantial resources, it's foreseeable that the company will persist in spearheading advancements in this domain.
Teaming up with OpenAI, Coca-Cola unveiled the "Masterpiece" campaign, a brilliantly crafted fusion of art and live-action components designed to deliver an unmatched viewing experience.
Coca-Cola stands among the pioneers in the global arena to fully embrace generative AI, exemplified by the appointment of Pratik Thakar as the global head of GenAI. The company's goal is to seamlessly blend AI with human creativity to elevate brand identity and advertising strategies. Going beyond traditional advertising, Coca-Cola is committed to supporting independent artists and small studios. Initiatives like the Real Magic Creative Academy and Coke Studio, a complimentary music-making platform enhanced by AI, underscore the company's dedication to empowering creative communities.
Consider Netflix's recommendations engine (NRE), fueled by AI, which boasts an annual value of $1 billion. How does it manage the task of delivering intricate and tailored recommendations to millions of subscribers?
The NRE employs sophisticated algorithms to sift through content based on individual user profiles. Capable of handling over 3,000 titles simultaneously, it utilizes 1,300 recommendation clusters to precisely identify titles that align with a user's potential interests.
Through the analysis of data derived from each customer's visit and interactions, the recommendation engine effectively "learns" individual preferences. This learning process enables the engine to generate hyper-personalized recommendations for each user, regardless of the scale of your customer base. The engine can swiftly match any given customer with the most fitting products or offers.
Automation projects in organizations often have a limited scope and progress "bottom-up," so it was refreshing to learn that at least one major company, Johnson & Johnson, takes a comprehensive approach to its digital strategy on an enterprise-wide scale.
The J&J initiative, "Intelligent Automation" (IA), is savvy in that it frequently involves rethinking how the company operates and utilizes intelligent digital solutions, such as machine learning, along with robotic process automation tools — making it one of the most extensive programs I've come across. This serves as an excellent model for any organization seeking to maximize the benefits of automation tools. J&J's goal is to reimagine cross-functional business processes through a digital approach, shifting employees' focus from manual tasks to more appealing, creative, and purpose-driven work.
An example highlighting the use of AI is how Sephora has incorporated voice search. In 2017, the company rolled out one of the first Google Assistant actions, allowing users to book beauty services, participate in quiz games, and listen to beauty podcasts.
Currently, users of Google Assistant can easily shop at Sephora. For those using Google Home, they can access Sephora's Skincare Advisor tool. This tool helps users find nearby stores, receive skincare tips, and determine their skin type. Moreover, users can tell Google Assistant to play a makeup tutorial from Sephora through Google Home.
In recent years, BMW has enhanced its Spartanburg, South Carolina, plant by integrating advanced AI capabilities. This expansive facility covers over 8 million square feet and is responsible for manufacturing approximately 60% of all BMWs sold in the United States, equating to over 1,500 vehicles produced daily.
Within the body shop, robots meticulously weld between 300 and 400 metal studs onto the frame of each SUV. This translates to roughly half a million studs applied daily, a task now efficiently overseen by AI.
Additionally, you can come across the integration of artificial intelligence directly into cars. Check out how it works here:
Pinterest's Lens feature is a prime example of visual search. Through this feature, users can seek out items in a photo captured with their phone's camera or upload existing pictures from their camera roll.
In 2020, the visual search engine recorded 459 million monthly active users who preferred using visual search to discover new brands or products rather than traditional search methods.
Artificial intelligence will increasingly permeate people's lives and businesses. To leverage innovations for the growth of your own business and always have up-to-date tools to enhance customer service and boost sales, start integrating technologies into your operations now. If you need advice on implementing artificial intelligence tools for your e-commerce business, reach out to us for expert consultation.