How Modern AI is Transforming Marketplaces

JD Prater

June 26, 2023

Table of Contents

A transformation is underway in marketplaces, and it's being led by Modern AI. It's not just transforming how operations, but also how they connect with customers.

Welcome to the Intelligence Era where Modern AI not just enhances, but redefines customer relationships, uncovers deep-seated insights, and catalyzes growth.

In this post, I'll explore the transformative role of Modern AI in today's marketplaces, demonstrating its capability to redefine customer experiences and revolutionize business processes.

The Emergence of Modern AI Powered Marketplaces

Marketplaces have always been the buzzing hubs of commerce, forever adapting to technological innovations. However, the dawn of Modern AI has sent this transformation into hyperdrive, equipping marketplaces with unparalleled dynamism and precision.

traditional ai vs modern ai

How, you ask? Let's take a closer look at how Modern AI is pushing the boundaries of what's possible, leaving traditional AI in its wake:

From Bespoke Models to Foundation Models: Modern AI ditches the resource-draining process of building models from scratch for each task. Instead, it utilizes foundation models as a robust launchpad, all set to be fine-tuned. In a marketplace context, these models are already well-versed in the fundamentals of customer behavior, purchasing trends, and marketplace dynamics. The result? Faster, sharper insights with less data.

From Model-Centric to Data-Centric: Traditional AI often gets entangled in the intricacies of model selection and hyperparameter tuning. Data-centric, however, shifts the focus towards understanding and interpreting various data types and use cases - a domain where businesses are already experts. It's all about looking at the bigger picture, processing multimodal data from text and numbers to images, audio, video, graphs, and geospatial data. This gives Modern AI a holistic perspective of marketplace dynamics and customer behavior.

data centric vs model centric ai

From Disjointed Components to Full Lifecycle Engagement: Unlike the piecemeal approach of traditional AI, a Modern AI Platform encourages full-lifecycle engagement. This end-to-end platform begins with the source(s) of data and continues until a use case is retired, possibly years later. It’s a single place to monitor, update, or modify your apps.

This just scratches the surface of Modern AI's potential. Imagine a future where Modern AI is as universally accessible as electricity - powering every business, big or small, regardless of their technical background. It’s a future where the transformative power of Modern AI supercharges growth and customer satisfaction across all marketplaces. Exciting, isn't it?

Let's explore how Modern AI fuels marketplaces with customer personalization, amplifies customer insights, and uncovers hidden avenues for upselling and customer re-engagement.

Check out 14 Marketplace AI Use Cases that are Fueling Growth

The Art of Crafting Hyper-Personalized Experiences with Modern AI 

Personalization is more than a buzzword in the digital marketplace; it's the golden ticket to exceptional customer engagement. While traditional AI systems made strides in offering product suggestions based on past purchases, browsing history, and trending items, Modern AI leaps ahead, delivering an unmatched level of personalized engagement. But how exactly does it accomplish this? Let's illustrate with a story.

Meet John. He's an avid reader, particularly fond of detective novels, and his favorite place to discover new books is his trusted online bookstore. Traditional AI systems would recommend books based on John's past purchases and trending items in the genre. However, Modern AI takes a leap further.

the impact of ai
Source: Capgemini

Lucky for John, his favorite online bookstore employs a Modern AI-powered 'Recommendations' app. Rather than simply suggesting trending detective novels, the recommendation engine delves deeper, unraveling the intricate patterns of John's reading habits. It's akin to having a personal librarian who doesn't just know John's genre preference but understands his specific tastes, providing a curated list of books he's likely to enjoy.

ai-powered recommendations

Such personalized experiences transform casual shoppers like John into loyal customers. By enabling these tailored experiences, Modern AI is setting a new standard for customer engagement, where every interaction feels like a personal concierge service, intimately familiar with each customer's preferences and quirks.

Unparalleled Customer Insights at Scale with Modern AI 

Modern AI’s strength lies in its innate adaptability to the complex, fluctuating patterns of customer behavior. Its flexible nature enables businesses not just to keep pace with their customers, but to preempt their needs and stay a step ahead. To better understand this, let's explore an example of a B2B marketplace deploying a 'Lead Scoring' AI app.

This is not an ordinary app. It delves deeper than basic demographic or firmographic data, continually learning from dynamic customer behavior and interactions. Imagine having a crystal ball that, instead of vague predictions, offers precise forecasts about which potential leads are most likely to convert into profitable customers. This empowers your marketplace to streamline marketing and sales efforts more efficiently, focusing on high-potential leads.

finding similar customers

Modern AI’s ability to predict customer behavior and preferences with such precision underscores its potential. It doesn't merely alter the way marketplaces function; it crafts an ecosystem that's efficient, customer-centric, and ripe for growth. It's about nurturing long-term relationships while simultaneously boosting profitability.

Fueling Revenue Growth with Personalized Customer Experiences 

Consider the case of Emma, a fan of cutting-edge fashion trends, and her engagement with the hypothetical fashion retailer, "Style Spectrum". Imagine a world where every customer interaction is not only unforgettable but also an opportunity for revenue growth – a world enabled by Modern AI.

Emma loved the style and fit of her friend's hoodie. Using Style Spectrum's 'Visual Search' AI feature, she simply uploaded a photo of the desired hoodie and was instantly presented with similar styles and colors available in her size, leading to an immediate and satisfying purchase.

visual search with ai

This experience illustrates how Modern AI merges the understanding of customer behavior with strategic engagement. It’s not just about upselling – it's about curating memorable, personalized experiences that foster lasting customer relationships and drive sustainable business growth.

Modern AI-Driven Marketplaces

More than just enhanced recommendations or user-centric notifications, Modern AI is ushering in a new era of immersive, personalized experiences for users. With pre-trained foundation models, a data-centric approach, and a full-lifecycle perspective, Modern AI enables deeper customer insights, superior personalization, and predictive precision that gives businesses an unprecedented edge.

But only 13% overall have rolled out multiple AI applications across numerous teams, as per the findings of the The AI Powered Enterprise: Unlocking the potential of AI at scale.

Graft makes Modern AI accessible not just for data scientists and ML engineers, but for everyone – from product teams to data analysts to marketers. The power to drive innovation, growth, and success is now in everyone's hands -not in a backlog.

modern ai outcomes for marketplaces

Embrace the future powered by Modern AI. Stay updated with the latest trends and insights by subscribing to our newsletter and following us on social media. Together, we can seize the transformation that Modern AI brings to the marketplace industry.

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Last Updated

December 15, 2023

Further reading

JD Prater

Head of Marketing

JD writes about his experience using and building AI solutions. Outside of work, you'll find him spending time with his family, cycling the backroads of the Santa Cruz mountains, and surfing the local sandbars. Say hi on LinkedIn.

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