AI-Powered Website Personalization

Four basic terms every retailer should know

As you venture into the world of artificial intelligence (AI) to create personalized shopping experiences, you may find yourself faced with confusing terms and phrases. Because it takes different types of AI to power personalization, here are four basic terms you need to know.

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AI is the umbrella term for technologies that reason, learn information, and understand language. Basic examples include autocompleted Google searches, Spotify product recommendations, and Facebook ads and stories in your newsfeed based on your browsing history. The rapid increase of connected devices and the “Internet of Things” (IoT) is leading to even more complex uses of AI, such as self-driving cars.

Machine learning is just one way an AI system gets smarter as it analyzes more information. It begins with training data - the more the better - from which the AI system automatically learns underlying relationships between variables. By continually analyzing data, machine learning finds patterns and the uses data in those patterns to adapt its algorithm to learn how to assign outputs to every input. Previously, computer programmers told a computer exactly what rules to follow and what to do, but machine learning learns from example data to find the most accurate way to connect inputs to outputs.

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