Fluid AI chief executive says that Artificial Intelligence will “encourage consumers to spend more” because machine learning targets us more effectively, such as when we’re more likely to be at home and bored. AI shopping also puts products you want in front of you – rather than taking shots in the dark. This means companies can implement more sophisticated buying funnels at the cost of consumers.
We’re interested in what artificial intelligence shopping will mean for the consumer, if the experts are saying it’s likely to encourage us to spend more. This could be worrying, because it seems everything we want and need is going to be right in front of us and more easily accessible. AI shopping could see an increase in impulsive buys, and it could become harder to stick to a strict budget as we become confronted with the indulgent, nice things we want more and more!
Our guide is looking at all the ways AI shopping behaviour has the potential to change your buying behaviour and experiences in the future.
Advanced Technology Quietly Makes You Shop
AI shopping technology is not found, solely, on an online retailers’ website. Algorithms that are integrated with other apps and platforms can also be encouraging us to shop, particularly as we prefer visual content more and more. Artificial intelligence technology is now changing the way you discover products to buy – whether you need them or not.
The example given in an article by Time magazine highlights Pinterest Lens, which is one of the best examples of how AI is changing shopping behaviours. Pinterest Lens is simple, you can use your phone camera to capture something you like, for example, a t-shirt. The search functionality will then show you the same, or similar items you can buy online.
The concerning part is that this technology is integrated and almost-solely depends on mobile browsing and shopping. You can snap a picture, make a transaction and hardly notice because the experience was not physical.
Here at Wizzcash, we have written about the cost of contactless payments and the effect it could have on your financial security. Although contactless and AI shopping is convenient and seamless, it distances the person from the transaction. This can lead to financial situations in which consumers are not aware of how much money they have spent, leading them to lean on a payday loan or short term loans when there’s not enough money to deal with an emergency.
Could AI Shopping Improving Your Security & Privacy?
Research by LexisNexis Risk Solutions discovered that it is approximately seven times harder to prevent fraud when making payments online and via a mobile device than in store. This is because it is harder to verify purchases described as Card Not Present. This kind of information often makes consumers wary of falling victim to identity and financial fraud. CIFAS, the UKs government fraud prevention service reported an increase in fraud victims for the last couple of years. They also state that the tactics used by fraudsters are constantly changing and developing. As such, AI is an appropriate response, able to develop and adapt as quickly as fraudsters.
AI shopping technology learns consumer behaviour and recognises where, how and when they spend their money. This means they are instantly able to determine when something is wrong and can block the payment or request a 2 factor authentication. AI is able to identify patterns that humans are unable to spot manually because it analyses such big data sets.
Removing Pain Points For Online Customers
A pain point is the reason a customer is not converting and making a purchase online. They could have unanswered questions about a product, from anything about the size of the item, to the delivery and the returns policy. Their trepidation prevents them from completing a purchase.
Removing these perceived pain points has been a challenge for companies since the start of online retailing. Typically, if you have these kinds of questions, consumers are likely to visit in store to find out more about a physical product or call to speak to a customer service provider. However, that process relies on the customer making the effort. As technology advances, we are becoming more and more reluctant to do the leg work to find out more. We want all the information presented nicely to us.
AI shopping chat bots are becoming more and more common across e-commerce sites. This is because they are the ideal solution to this kind of customer pain point. Consumer’s type out a quick message and AI technology interprets the message, even picking up on tone and the type of language used to provide an appropriate response. AI shopping chat bots means consumers get their answers quicker and are more likely to convert online – spending more, but also, perhaps, making better purchasing decisions.
Improving Your Customer Loyalty
Research shows that 49% of consumers would return to a shop or retailer online if they had AI shopping technology. As we have already mentioned, this is because AI shopping is problem-solving in its nature of presenting us with the items we ‘need’. Our online shopping can become solution-focused and offer a better, personalised service.
This is particularly important for business revenue because it is reportedly 25 x more expensive to convert a new customer than to retain an existing one.
There’s no doubt that AI shopping is re-shaping how we buy and think about our purchases. AI technology could be a positive advancement, as long as consumers stay wise to track their transactions and are not lured in by the ease of purchasing, because it can have negative effects in the long term. Perhaps the biggest benefit of AI is how it can protect consumers personal information and works to prevent fraud. Here at Wizzcash, we want all consumers to be safe when they make purchases online and we also want them to take their finances seriously. However, if you are in the situation in which you cannot afford to pay an emergency bill, perhaps we could help. Find out more on our website.