How Google’s new generative AI feature is set to impact eCommerce businesses

As technology continues to advance at a rapid rate, savvy businesses, in all corners of the globe are constantly exploring new and exciting ways to improve their day to day business operations and optimise the overall customer experience using technology such as Generative AI.

In recent months, there’s been a stark rise in media attention surrounding AI, and its impact on the world of eCommerce, especially during last month, when Google launched a new generative AI feature, which allows users to experience an in-person shopping experience, whilst online.

This virtual try on try on tool, which can be found on the search engine’s Google Shopping tab, is powered by a new diffusion-based model Google developed internally and aims to: “improve our lives in ways big and small, including making everyday activities like shopping just a bit more helpful (and fun).”

It is hoped that introducing virtual try-on tools to the world of eCommerce will help to reduce the amount of returns, as customers will now be able to gain a first hand insight into whether they suit the fit and colour of the garment they are purchasing online. In turn, it is hoped that this will save eCommerce businesses both time and money.

What are the benefits of generative AI?

There are a number of different benefits that come hand in hand with Generative AI for E-commerce Businesses including the following:

• Businesses are able to improve the customer experience by providing personalised product recommendations, accurate search results and a faster and more efficient service
• One of the main benefits of Generative AI is that it can detect fraudulent activity and alert e-commerce businesses to potential risks, which can be a major problem in the world of eCommerce
• Businesses are able to optimise sales and revenue by providing a personalised, highly targeted shopping experience.
• AI can provide customers with instant assistance, 24/7, without the need for human intervention
• Generative AI can analyse vast amounts of data, including customer browsing and purchasing history

Finally, in the digital world, it’s paramount that all businesses remain one step ahead of their competition, and as generative AI continues to increase in popularity, it’s crucial that all businesses recognise its benefits.

Chris Raven, CEO at business growth agency Heur, has been quoted in an article online stating: “In the last year we’ve seen conversations around the negative impact of returns on the climate arise. Virtual try-on tools will help with the number of returns as users will get a better sense of fit and colour. Not only will this help brands cut costs and free up time, it will also be positive for the fashion industry’s negative impact on the climate.

“Online brands are often criticised for the lack of diversity in their model choices and the unseen manipulation of clothes in these photoshoots. Not only does this lead to unsatisfied customers who will often leave bad reviews which will impact sales, consumers will often choose to go to a proper store for peace of mind and stay away from online brands. The diverse range of models Google has used will attract new customers who have previously been wary of online shopping.”

There’s no denying that this innovative technology has the potential to revolutionise the world eCommerce, in a way that we have never seen before.

Allowing customers to search for products using images instead of text, this growing trend looks set to take eCommerce by storm, as users once again adapt to a new way of shopping online.

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At Unicorn Accountancy we are eCommerce accountants who help make your online business a growing success. We offer eCommerce accounting advice, financial management, bookkeeping, cash flow statement, and tax filing services to support and scale your business.

To maximise the scalability of your eCommerce brand, get in touch with Unicorn Accounting today.

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