THE ROLE OF ARTIFICIAL INTELLIGENCE IN PERSONALIZING CONSUMER EXPERIENCES: A STUDY ON PREDICTIVE ANALYTICS IN THE E-COMMERCE SECTOR
Keywords:
Artificial Intelligence (AI) in E-commerce, Personalization and Predictive Analytics, Customer Engagement and Loyalty, Ethical AI Practices, and Market Performance OptimizationAbstract
Artificial Intelligence (AI) has completely changed the way companies communicate with customers in the e-commerce industry. This has had a profound impact on customization, customer experience, and market dynamics. This research investigates how customization techniques and predictive analytics might improve customer experiences using AI. Artificial Intelligence (AI) allows e-commerce systems to provide highly customized suggestions by analyzing large datasets created by online consumers. This leads to greater customer happiness, higher conversion rates, and enhanced loyalty. The study also demonstrates the competitive advantage of e-commerce platforms that use AI-driven customization, highlighting their better market performance in a quickly changing digital economy.
But the report also discusses the difficulties and moral questions raised by the use of AI, notably those pertaining to algorithmic prejudice and data privacy. These issues pose serious obstacles to the general use of AI, calling for the creation of moral AI procedures and open decision-making procedures. Future recommendations include expanding AI customization throughout omnichannel shopping, investing in Explainable AI (XAI), developing ethical AI, and continuously innovating AI systems to stay competitive.
The results highlight the strategic significance of AI in contemporary e-commerce and provide useful guidance to companies wishing to use AI technology to improve customer experiences and outperform competitors in the market. This study adds to the continuing conversation about how artificial intelligence will influence e-commerce in the future by providing insightful advice for companies attempting to manage the challenges associated with adopting AI.
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