THE DYNAMICS OF ENGAGEMENT

Sanjeewaka Kulathunga explains AI’s role in grasping customer priorities

The rapid advancement of technology, particularly in the field of AI, has ushered in a profound transformation across many facets of our lives. And it has fundamentally altered the landscape of how we interact with businesses and navigate the process of making purchasing decisions.

This seismic shift is driven by the accelerating integration of artificial intelligence into our daily routines. It’s heralding a new era where consumer behaviour is being reshaped, and the dynamics of engagement with products and services are undergoing a profound change.

With its ability to analyse vast troves of data, recognise patterns and make predictions, AI has become an omnipresent force in the modern world. As these technologies continue to evolve and proliferate, their influence on consumer behaviour is expanding, and permeating cultures and markets worldwide.

One of the most significant ways that artificial intelligence has influenced consumer behaviour is through personalised recommendations. Its algorithms analyse enormous amounts of data – including past purchases, browsing history and user preferences – to provide tailored product suggestions.

This level of personalisation enhances the consumer experience by saving time and effort in searching for relevant products.

Amazon’s recommendation engine is a prime example of this process. By analysing user behaviour and purchasing history, it suggests products that align with the customer’s interests – and these suggestions lead to increased customer satisfaction and higher sales.

AI-powered chatbots and virtual assistants are becoming increasingly prevalent in customer service interactions. They can understand and respond to customer queries, and provide instant support and guidance.

Chatbots offer 24/7 availability, quick response times and consistent service, which have transformed how consumers seek assistance.

Apple’s Siri and Google Assistant are widely used virtual assistants that leverage AI to understand and respond to user commands. They have become an integral part of consumers’ daily lives by assisting with tasks such as logging reminders, answering questions and even making reservations.

Artificial intelligence has revolutionised customer service by enabling businesses to provide faster and more efficient support. Natural language processing (NLP) algorithms enable AI systems to understand and interpret customer queries, and this leads to improved response times and personalised assistance.

AI-powered customer service solutions can handle large volumes of inquiries simultaneously, and thereby reduce waiting times and enhance customer satisfaction.

Delta Air Lines has implemented an AI-powered customer service system called Deltabot. This chatbot assists customers with flight information, booking changes and other inquiries. By leveraging AI, the airline has greatly improved its customer service capabilities through the provision of quick and accurate responses to queries.

AI driven predictive analytics has transformed the way businesses understand consumer behaviour and preferences. By analysing vast amounts of data, algorithms can identify patterns and trends, and enable businesses to anticipate consumer needs and tailor their offerings accordingly.

Predictive analytics helps businesses optimise their marketing strategies, inventory management and product development.

For example, Netflix utilises AI-powered predictive analytics to recommend personalised content to its users. By studying user viewing habits, ratings and preferences, the platform suggests movies and TV shows that align with the viewer’s interests. This personalised approach has contributed to Netflix’s success and increased customer engagement.

The advent of voice assistants and smart speakers has given birth to voice commerce. Voice assistants enable consumers to make purchases, order food and perform various transactions using voice commands. Voice commerce offers convenience, speed and hands free interaction, and is transforming the way consumers shop.

As AI keeps on advancing, it will undoubtedly continue to shape consumer behaviour, and lead to further innovation and convenience in the marketplace.

And as global business giants move forward, it is timely and important to explore the impact of artificial intelligence on consumer behaviour worldwide. It’s a multifaceted phenomenon that transcends borders, industries and demographics.

Understanding how AI is reshaping consumer behaviour is not only crucial for businesses seeking to thrive in this era but also for policy makers, researchers and society as a whole. It’s a dynamic and ongoing transformation that promises to redefine our relationship with technology, commerce and each other in the years to come.