Amazon’s Artificial Intelligence (AI) in Marketing

amazon ai marketing

Amazon AI Marketing


Amazon is the most excellent online retailer in the world by market capitalization. In Seattle, Washington, Amazon was established as a book-selling platform in 1994. Since then, it has developed into a well-known brand that offers various goods and services. The company’s net sales as of 2020 are derived from subscription services, Amazon Web Services, and services provided to third-party retail sellers.

Today, the business has created AI applications for eCommerce, shipping, warehousing, and other sectors. Customer passion over competitive emphasis is the first of Amazon’s four alleged guiding principles.

To illustrate the development and enhancement of Amazon’s recommendation algorithm over time and its commercial impact and return on investment (ROI), we’ll start by going deeper into product suggestions.


How does Amazon use AI?

Amazon is a company that has transformed and rebuilt itself to use artificial intelligence in many facets of the company. Currently, 35% of all sales on Amazon are accounted for by recommendation engines. They use ongoing AI to decipher the context and intent of client search queries, enabling them to realise why people are shopping for particular products. The conversational AI engine underpins Alexa, Amazon’s premier smart speaker product. Intelligent robots are also being used to automate Amazon’s warehouses.


How AI contributes to increasing sales of Amazon?

Let’s start with an introduction to AI. A computer algorithm decides or deduces things the same way a person would. Just a lot quicker and with data comparable to that of Everest.

Machine learning, which gives a computer a problem and some basic guidelines on tackling it, forms its basis. Because of its processing speed, it finds the correct answer more quickly. And when more data is processed, it gets better. Amazon had a problem ten years ago. It was far behind Big Tech in terms of AI.

Why? For the AI celebration, it was a little late. It was concentrating on ERP because of its beginnings as an online book store and then as a broad consumer goods company. Enterprise resource planning involves organising a company’s back-of-house systems. The process-driven ERP system should work flawlessly if you submit an order.

Google, Facebook, Apple, and Microsoft had visionaries years ahead of their time. Their expectations for AI and what it may accomplish for humanity were higher. Three concentrated on artificial intelligence and operating systems. On the other hand, Facebook has consistently focused on collecting and selling your data to make money.

Bezos started focusing on using AI to boost sales and turn customers into clients. The term “customers” suggests an ongoing engagement rather than a one-time encounter. You experience that when you go down the Amazon rabbit hole. Amazon developed a love and trust for AI’s responses over time.

The company is nowadays a world leader in consumer AI, machine learning, and deep learning.

Flywheel Approach

What exactly is Amazon’s trade secret, then? How did they accomplish a successful artificial intelligence integration within their company?

The following is the key: Amazon has a “flywheel” approach to artificial intelligence. The term “flywheel” is an engineering term that describes a way for companies to keep moving while preserving energy. In that we may press a pedal and provide a small amount of power at a time to keep them moving continuously, flywheels are analogous to potter’s wheels.

Like a flywheel, artificial intelligence takes a lot of energy to start moving, but once it does, continuing to give it small boosts makes it much more manageable.

Amazon developed a plan to maintain artificial intelligence’s speed across their whole organisation, ensuring their efforts never slowed down. Artificial intelligence has its velocity. This long-term strategy provides the highest possible return on AI investments.

Jeff Bezos, the company’s creator, has insisted that data be shared throughout the organisation instead of being accumulated in a single department or process, even though Amazon’s entire business is always buzzing with artificial intelligence. Datasets are always linked to other data within the organisation to guarantee that they may be externalised from the ground up.

The Amazon engine is propelled by a flywheel of continuous data and AI, and innovations made by one team or department can be shared with other company divisions.


Relation between amazon and its customer experience

The continual obsession of Amazon with providing the best customer experience is well recognised. They have revolutionised online shopping around the globe, introducing one-click ordering and automated warehouses that enable super-fast shipment.

Amazon recently introduced physical Amazon Go stores, where customers will (ideally) be able to wander in, place their purchases in a shopping bag, and then exit via the front door without having to pay with cash or a credit card or go through the checkout process. The physical shopping experience is being changed by using artificial intelligence based on facial recognition, machine vision, and machine learning.

Companies of all sizes can profit from researching how Amazon uses AI and analysing its excellent top-to-bottom flywheel strategy. How can your business leverage big data and AI to increase sales while giving clients and consumers a first-class experience?


What’s the risk in Amazon using AI?

Your home network’s Alexa device is a reliable one. Security experts claim that Amazon is a “monolithic and opportunistic thief” who will use our data against us without any barriers.

AI can manipulate our emotions, limit what we hear and see, and profit off our demand for ease instead of helping us. Do you want to purchase it?

These concerns get more pressing as we conduct more online shopping during the Covid-19 closure. Amazon’s near-total dominance of the online retail industry has rekindled antitrust concerns. It’s important to note that Amazon pays incredibly little tax in Australia.


Final words

As Amazon’s algorithms advance, shoppers will receive more pertinent buying recommendations. According to Amazon, such research may pave the way for customised digital shopping assistants. It is impressive to see Amazon develop effective ways to enhance the customer experience in this fast-paced environment when tech behemoths are still struggling with internal bureaucracy and technology silos.



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