AI-powered product-recommendation engines influence purchase decisions—providing recommendations as soon as customers interact with the website; as it is able to ascertain what each user likely wants (based on related searches, browsing history, online behavior, social media posts, recent purchases, etc.) It is no surprise, then, that investment in AI technology has grown six-fold in the past two decades. AI startups have grown in size 10 times over during the past decade; and will only continue in the coming years. By the year 2025, the global AI market is expected to be almost $60 billion. (In 2016, it was merely $1.4 billion.) Some estimate that AI-powered chatbots will help businesses save $8 billion in operating costs in 2022.
AI technology can be used to track online behavior, monitoring people’s browsing and shopping history to discern any patterns that might help predict their next purchasing decisions. AI is not just about replicating intelligence and automating processes; the point is to carry out tasks faster than even a large staff, performing functions better than even the smartest humans. Using predictive analytics, an AI platform has the ability to find patterns and organize uncategorized data. This affords marketing teams the ability to give target audiences what they want, when they want it, saving them time and money, while improving conversion rates and retention rates.