The Impact of Machine Learning on Digital Commerce

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How will machine learning change the digital e-commerce experience? and more importantly how is changing it right now? From personalization, merchandising to fraud detection; let's explore how machine learning is already touching arguably all areas of the e-commerce ecosystem.

Technologie

Director of Engineering
Allan MacGregor
@allanmacgregor
amacgregor

w i k i p e d i a . c o m
“Machine learning is a type of artiﬁcial
intelligence (AI) that provides computers
with the ability to learn without being
explicitly programmed.
What is Machine Learning?

1974–1980
1987–1993
LIMITEDCOMPUTERPOWER
INTRACTABILITYCOMBINATORIALEXPLOSION
MORAVEC'SPARADOX
ENDOFFUNDING
REASONING
COLLAPSEOFTHELISPMARKET
LACKOFTRUSTFALLOFTHEEXPERTSYSTEMS

COGNITIVE SECURITY
FRAUD DETECTION
INTELLIGENT SEARCH
SMART COMMERCE
COGNITIVE COMMERCE
PERSONALIZATION
SEGMENTATION
CONVERSATIONAL AGENTS
NATURAL SEARCH PRICING INTELLIGENCE
TRACK

• Machine learning templates
• Deploy ML engines as service
• Easy to use without requiring tons of
background knowledge
• Open Source

30% of customers that visit a store will use
the search
SEARCH
50% higher conversion rate for search
compared to the rest of the site

•Whipper Snipper
•Weed Trimmer
•Weed Eater
•Weed Wacker
•Grass Trimmer
SEARCH

SEARCH + NLP
SEARCH
Making Search Understand Human

KLEVU Features:
SEARCH
• Self-learning
• Query Filtering
• Inﬂection understanding

Machine Learning / AI
Will NOT:
•Take over the human race

•Kill all humans

COGNITIVE SECURITY
FRAUD DETECTION
PRICE INTELLIGENCE
ANTICIPATORY SHIPPING
CONTENT PERSONALIZATION

COGNITIVE SECURITY
+DEMAC MEDIA
750Million logs per month
40+Servers across North
America

SHOWING THE SAME
INFORMATION TO EVERYONE
IS A
MISSED
OPPORTUNITY
PERSONALIZATON

PERSONALIZATON
CONVERSATION COMMERCE
TO
?????????

PERSONALIZATON
ONLINE APPAREL
30% average return rate
3% average conversion rate

PERSONALIZATON
SMARTER TOOLS FOR MERCHANTS

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The Impact of Machine Learning on Digital Commerce

2. Director of Engineering Allan MacGregor @allanmacgregor amacgregor

3. w i k i p e d i a . c o m “Machine learning is a type of artiﬁcial intelligence (AI) that provides computers with the ability to learn without being explicitly programmed. What is Machine Learning?

4. w i k i p e d i a . c o m “Machine learning is a type of artiﬁcial intelligence (AI) that provides computers with the ability to learn without being explicitly programmed.

5. w i k i p e d i a . c o m “Machine learning is a type of artiﬁcial intelligence (AI) that provides computers with the ability to learn without being explicitly programmed. MACHINE LEARNING ARTICIFIAL INTELLIGENCE DEEP LEARNING SMART COMMERCE CONVERSATIONAL PERSONALIZATION BIG DATA BOTS INTELLIGENT ASSISTANTS RNN NATURAL LANGUAGE PROCESSING

6. 1974–1980 1987–1993 LIMITEDCOMPUTERPOWER INTRACTABILITYCOMBINATORIALEXPLOSION MORAVEC'SPARADOX ENDOFFUNDING REASONING COLLAPSEOFTHELISPMARKET LACKOFTRUSTFALLOFTHEEXPERTSYSTEMS

7. w i k i p e d i a . c o m “Machine learning is a type of artiﬁcial intelligence (AI) that provides computers with the ability to learn without being explicitly programmed. 2015 - US$ 126 Bn AI MARKET VALUE TO 2024 - US$ 3.1 Trillion Source: Artiﬁcial Intelligence Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2016 - 2024

8. w i k i p e d i a . c o m “Machine learning is a type of artiﬁcial intelligence (AI) that provides computers with the ability to learn without being explicitly programmed. Why Machine Learning?

9. COGNITIVE SECURITY FRAUD DETECTION INTELLIGENT SEARCH SMART COMMERCE COGNITIVE COMMERCE PERSONALIZATION SEGMENTATION CONVERSATIONAL AGENTS NATURAL SEARCH PRICING INTELLIGENCE TRACK

10. w i k i p e d i a . c o m “Machine learning is a type of artiﬁcial intelligence (AI) that provides computers with the ability to learn without being explicitly programmed. Machine Learning Digital Commerce+

11. w i k i p e d i a . c o m “Machine learning is a type of artiﬁcial intelligence (AI) that provides computers with the ability to learn without being explicitly programmed. Product Recommendations UPSELL, CROSSELL & RELATED PRODUCTS

12. [Product Recommendations]

13. w i k i p e d i a . c o m “Machine learning is a type of artiﬁcial intelligence (AI) that provides computers with the ability to learn without being explicitly programmed. +

14. • Machine learning templates • Deploy ML engines as service • Easy to use without requiring tons of background knowledge • Open Source

15. w i k i p e d i a . c o m “Machine learning is a type of artiﬁcial intelligence (AI) that provides computers with the ability to learn without being explicitly programmed. SEARCH SOLR, ELASTICH SEARCH AND WHAT’S NEXT

16. 30% of customers that visit a store will use the search SEARCH 50% higher conversion rate for search compared to the rest of the site

17. w i k i p e d i a . c o m “Machine learning is a type of artiﬁcial intelligence (AI) that provides computers with the ability to learn without being explicitly programmed. + SEARCH

18. Challenge: Search Accuracy SEARCH

19. Whipper Snipper SEARCH

20. •Whipper Snipper •Weed Trimmer •Weed Eater •Weed Wacker •Grass Trimmer SEARCH

21. SEARCH + NLP SEARCH Making Search Understand Human

22. SEARCH

23. KLEVU Features: SEARCH • Self-learning • Query Filtering • Inﬂection understanding

24. SEARCH What Machine Learning Wants

25. Machine Learning / AI Will NOT: •Take over the human race •Kill all humans

26. COGNITIVE SECURITY FRAUD DETECTION PRICE INTELLIGENCE ANTICIPATORY SHIPPING CONTENT PERSONALIZATION

27. FRAUD DETECTION

28. ANTICIPATORY SHIPPING

29. PRICE INTELLIGENCE