3 Ways Generative AI Augments Digital Commerce: A Gartner® Report

“GenAI is an emerging technology that has shown promise for various businesses and applications including digital commerce, and organizations are making fast moves.”

The 2023 Gartner Marketing Technology Survey shows that 14% of respondents have already invested in GenAI to support their marketing strategies, with 63% planning to do so in the coming 24 months.

Gartner’s webinar Beyond the Hype: Enterprise Impact of ChatGPT and Generative AI shows that 45% of the attendees increased their AI investment strategy since the launch of ChatGPT, and 70% are at the investigation stage.

• By 2025, 30% of outbound marketing messages from large organizations will be personalized using GenAI tools, up from less than 2% in 2022.
• By 2025, 20% of images and videos used in digital commerce will be created from text prompts using GenAI.
• By 2025, GenAI will function as a virtual employee assistant to handle at least 10% of operational tasks in digital commerce.” – Gartner® 

Harnessing the Power of Generative AI in Digital Commerce: A Comprehensive Guide for Application Leaders

The digital commerce landscape is undergoing a seismic shift, thanks to the advent of Generative AI (GenAI). As businesses strive to stay competitive, understanding and leveraging GenAI’s capabilities has become essential. This blog explores the impacts of GenAI on digital commerce, offering insights and strategic recommendations for application leaders to navigate this transformative technology.

The Emergence of GenAI in Digital Commerce

GenAI, a subset of artificial intelligence, is revolutionizing the way we think about content creation and user interaction in digital commerce. Unlike traditional AI, which relies on discriminative models for classification and prediction, GenAI takes creativity and innovation to new heights by generating novel content – be it text, images, or even code.

Impact of GenAI on Digital Commerce

→ Enhanced User Experience (UX): GenAI significantly improves digital commerce UX by offering unprecedented levels of personalization, creativity, and conversational engagement. It makes use of existing technologies such as search engines, analytics tools, and customer data to tailor experiences that resonate with individual users.

→ Increased Productivity: By functioning as a virtual assistant, GenAI automates various aspects of digital commerce workflows, such as sales, marketing, and customer support. This automation not only streamlines processes but also frees up valuable time for human employees to focus on more strategic tasks.

→ Content Generation and Optimization: GenAI excels in creating high-quality, diverse content at scale. From product descriptions to promotional materials, it enables businesses to generate content that is both engaging and tailored to specific audiences.

Gartner makes the following recommendations

→ Develop an AI portfolio by including all types of AI technologies to leverage their strengths. For example, use GenAI for new content generation and conversational UI, and use discriminative AI for classification and predictions.

→ Provide essential data (e.g., products, customers and orders) by using digital commerce applications to interact with GenAI for optimal performance.

→ Identify digital commerce workflow tasks (e.g., sales cycle, merchandising) where GenAI can automate and add value, especially for new content creation and insight aggregation.

Challenges and Considerations

While the benefits of GenAI are substantial, there are challenges to consider. The accuracy and relevance of GenAI-generated content depend heavily on the quality of the data fed into it. Moreover, ethical considerations, such as the potential for bias and the need for transparent data usage, must be addressed.

Integrating GenAI with Existing Technologies

To maximize the benefits of GenAI, it’s crucial to integrate it seamlessly with existing digital commerce technologies. This includes ensuring that GenAI works in tandem with your CRM, ERP, and other business systems. A well-integrated GenAI solution can provide deeper insights, enhance customer engagement, and streamline operations.

Preparing for the GenAI Revolution

As GenAI continues to evolve, staying ahead of the curve is essential. Application leaders should:

→ Stay Informed: Keep abreast of the latest developments in GenAI and related technologies.

→ Invest in Skills: Ensure your team has the necessary skills to leverage GenAI effectively.

→ Experiment and Learn: Start small with pilot projects to understand the capabilities and limitations of GenAI in your specific context.

Conclusion

Generative AI is not just a trend but a fundamental shift in how digital commerce operates. By enhancing user experiences, streamlining operations, and creating engaging content, GenAI offers immense opportunities for businesses willing to embrace it. For application leaders, the key is to strategically integrate GenAI into their technology stack, ensuring they are well-positioned to capitalize on this exciting new frontier in digital commerce.

Gartner, 3 Ways Generative AI Augments Digital Commerce, Sandy Shen, Ant Duffin, 25 October 2023

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