Artificial Intelligence in Electronic Commerce

Cheng-Chung Li
June 30, 2017

Introduction

These silders share my ideas about what AI can do in EC. Generally, there are three issues.

  • Logistics Management
  • Recommendation Systems
  • Cross-Monitor Advertisement

Logistics Management

This issue includes

  • product tracing, management and distribution
  • price comparison and formulation
  • warehouse allocation and management
  • retailer and customer evaluation

Many retailers start to focus on this issue, and some companies offer B2B services to tackle and alleviate this heavy loading.

Recommendation System-1

  • Search system relies on users' active actions, however, with recommendation system, users can passively receive information.

  • Emails can generally be viewed as a recommendation system. Nonetheless it is imprecise and annoying.

  • With users' recent behaviors and some techniques (collaborative filtering and SVM), we can recommend what they like in “a suitable time”.

Recommendation System-2

What is so called “suitable time”?

  • In the morning, we recommend breakfast and coffee.
  • In the afternoon, of course, afternoon tea coupon.
  • In the weekend, movie tickets and department stores sales.
  • Before the time stuffs have been used up, recommend users to buy next ones.

Rignt thing, right people, and right time.

Cross-Monitor Advertisement-1

According to research, about 59% people in Asia have three or more monitors.

  • Do users behind different monitors have diffent hehaviors? Yes.

Cross-Monitor Advertisement-2

For example, users can use cellphone, desktop, and mobile web to get on 104.com.tw

  • Most desktop users do not get on 104 in work hours.
  • Females and younger prefer cellphone.
  • People type fewer keywords in cellphone and type different keywords in different device.
  • People stay longer in desktop.

We know their preferences more, and we can recommend them precisely.

What is the key for AI to address these three issues?

  • DATA, PRECISE DATA, and SUFFICIENT DATA.
  • Data scientist plays like a cooker, to cook the data as a delicacy.
  • He or she can not do behyond data.

What Data are Needed?

  • Cross-monitor data?
  • different data in different time?
  • the user's or product's information?
  • other relative data.

In sum, we have some problem to solve, have we had or can we collect neceassary data to help us?

Conclusion

  • Data plus Machine Learning plus Visualization = Problem Solution and Communication
  • Using data and AI in EC is a popular topics, how to use and play the data is data scientist's duty. But how to collect and manage them is the mission for manager and data scientist.