Technology has transformed the way that we buy and sell goods. Thanks to E-Commerce, traders can [1] now transact their products or services almost anywhere in the world, at any time.
While it has made the trading process far easier and more efficient for many in Western economies, at the same time, it has left behind millions of other small businesses in emerging markets and developing economies (EMDEs). That’s because they have been put at an immediate disadvantage due to slow technological adoption and the fact customers don’t always speak the same language as that of the finance or technology providers.
Despite this, a new solution has emerged that will enable them to close the gap to their developed market counterparts. Artificial intelligence (AI) can help them to overcome these barriers and continue to grow their business. The only hardware they need is access to a smartphone and the internet.
Here are two forms of AI that are already making a big difference to traders in EMDEs:
Conversational AI
Conversational AI was designed to support improved customer communication. By using natural language processing (NLP), companies can automate the processing and understanding of human language. They can also utilise it to analyse the meaning of text and speech, and, thus, produce appropriate and relevant responses.
This is a game-changer for those traders that had previously been excluded from digital commerce because they were limited by the language they speak. By providing them with an instant and accurate translation, they can respond in a timely manner to any enquiries or requests.
Take Nigeria, for example. There are more than 500 language or dialects spoken in the country, meaning that businesses that only speak their own language can’t sell outside of their local community, either to their own countrymen or globally. But, with AI they can readily access and engage with these markets.
One of the most common types of conversational AI is the search bar. It interprets a customer’s search queries and provides them with responses based on its understanding of the enquiry and the data that it has been trained on. That enables the business to increase conversion rates, improve the customer experience, boost its productivity and operational efficiency, and reduce costs and the risk of human error.
Generative AI
AI can also be used to create new and unique content. By quickly analysing a customer’s browsing patterns, buying history and key behavioural information, generative AI can produce relevant and personalised campaigns, images and targeted offers that resonate with their interests and improve their shopping experience in real-time to convert more sales.
There are many examples of this already on the market, including ChatGPT, Google Bard and Midjourney, with further enhancements and models planned. With retail sales from chatbot-based interactions estimated to reach $112 billion by the end of this year, according to Juniper Research, the potential for generative AI is huge.
Future uses for AI
There are plenty of applications that AI can be used for in the future to boost sales and improve customer outcomes. One such use for conversational AI is automated negotiation, where a sales bot could be deployed to manage a business’s transactions.
The technology can also be used to provide customers with a personal virtual sales assistant, enabling them to negotiate terms and special offers, and build a relationship with the company, without having to interact with a human, thus driving service and sales, as well as efficiency savings.
But where it’s undoubtedly making the biggest difference is for EMDE traders, allowing them to access a global E-Commerce market which is forecast to peak at $3.65 trillion in 2023, reports Statista. By creating a more level playing field, it’s enabling them to reach their full potential within a far more transparent and equitable trading environment.
Juandre de Jong Senior Vice President Products at RedCloud, the world’s first Intelligent Open Commerce Platform. He is an astute business leader with 20+ years’ experience in business strategy, product management and digital execution in emerging markets. He was previously at Vodacom, setting and executing the product vision and strategy for their lending unit, including their BNPL offer in Africa, prior to this he was leading the portfolio growth of African FinTech, Jumo
