“Gans tells me “Whereas the primary benefit of electricity was that it decoupled energy from its source, which facilitated innovation in factory design, the primary benefit of AI is that it decouples prediction from the rest of the decision-making process, which facilitates innovation in organizational design via reimagining how decisions interrelate with one another.”
Decoupling prediction from the rest of the decision-making process enables a shift from merely lowering the cost of predictions to creating vastly more productive systems. It is only when this is widely understood, Gans says, that AI will achieve its transformational potential.”
“Modern dynamic pricing architectures also analyze real-time data on competitors’ prices and stock collected from websites using web scrapers or robotic process automation (RPA) bots. It evaluates many internal factors, like stock or inventory, KPIs, etc. And also evaluates external factors, including competitor prices and demand, to generate prices that align with a company’s pricing strategy.
Price-optimization system: This approach utilizes self-learning ML models without human intervention. It is best suited for airlines, hospitality, and ecommerce industries, where several variables impact pricing decisions. Such an AI-based approach depends on a vast amount of data to impact variables on the price. As more and more data is fed into the AI system for training the model, it self-learns through reinforcement-based methods and automatically tweaks the system’s performance.”
“In 2019, SOTI’s Annual Connected Retailer Survey indicated that US consumers prefer speed and convenience when shopping, and 73% of those surveyed favored self-service technologies that improve the shopping experience and reduce interactions with staff.
Michael Wallace, senior manager of Amazon Connect Scaling Solutions Architecture at Amazon Web Services (AWS), told CMSWire that the 2022 ACA (Achieving Customer Amazement) study revealed that 59% of customers think customer service is worse today than it was before the pandemic.”
“Using AI generates a 40% bump in marketing productivity, according to MobiDev figures. The use of algorithmic systems can lead to hours of savings in managing accounts, resulting in greater or equal returns with less budget.
In another study, 41% of marketers reported revenue improvements after using AI in their email campaigns, with a 13% improvement in click-through rates on average.
According to Salesforce data, 56% of buyers are interested in purchasing only from brands that they perceive as innovative. A set-and-forget strategy may work at creating personalized content to start, but it will need to be monitored to ensure it’s still effective.”
“Forty percent of customers prefer targeted ads aligned to what they are looking for to make the buying process easier. This could be why behaviorally targeted ads are twice as effective as non-targeted ads. AI helps marketers run more targeted brand campaigns, which eventually helps them decrease their marketing spend and increase their revenue.
A shoe retailer from London experienced an 8.6% increase in add-to-cart rate after serving personalized recommendations that appeared when a customer added one item to their cart.
The modern customer is spoiled. Seventy-five percent of customers expect to be taken care of within five minutes.”