The Global Impact of Artificial Intelligence and Machine Learning on the Efficiency of e-Commerce
Artificial intelligence and machine learning have had a significant impact on e-commerce, allowing companies to analyze large amounts of data and make managerial decisions more efficiently. These technologies improve customer experience, sales, profitability, and business processes of companies in t...
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| Format: | Article |
| Language: | English |
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Research Centre of Industrial Problems of Development of NAS of Ukraine
2023-08-01
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| Series: | Bìznes Inform |
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| Online Access: | https://www.business-inform.net/export_pdf/business-inform-2023-8_0-pages-114_121.pdf |
| Summary: | Artificial intelligence and machine learning have had a significant impact on e-commerce, allowing companies to analyze large amounts of data and make managerial decisions more efficiently. These technologies improve customer experience, sales, profitability, and business processes of companies in the industry. The aim of the article is to identify the key challenges for the e-commerce business in the part of artificial intelligence and machine learning with the formation of ways to overcome them. The article examines the key areas of influence of artificial intelligence and machine learning technologies on the state of e-commerce. It is noted that e-commerce has a significant weight in today’s global economy, as the global e-commerce market is projected to reach $6.4 trillion by 2024. The article also notes the existing gap between the developed models and their practical application in the industry due to their insufficient understanding by business, high costs and potential bias in the models. It is specified that the widespread use of algorithms can lead to undesirable consequences, i. e., it is extremely important to continue to develop models and create a framework for assessing their value and advantages in practical application. It is observed that ethical considerations are crucial when using artificial intelligence in e-commerce, as advertising personalization practices can violate privacy principles and manipulate customer behavior. An analysis of potential security measures that e-commerce companies can take in response to the risks of new technologies, such as data misuse or privacy breaches, is carried out. The key role of the expert function in the effective adaptation of new technologies in the industry is emphasized. The proposed study can be used in the work of e-commerce market analysts, specialized researchers, business associations, and other industry stakeholders. Prospects for further research involve studying the economic effect of the application of the researched technologies for companies in the field of e-commerce. |
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| ISSN: | 2222-4459 2311-116X |