Influencers Might Be Out Of Business Soon

Plus Amazon, Meta and Shopify are all AI-ing hard

Author

Jo Lambadjieva
August 08, 2023

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This is the first edition of AI for Ecom and Amazon Sellers. As such, any feedback in terms of how we can improve this newsletter would be really welcome! Just reply to this mail with any of your thoughts and suggestions.

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Jo

TL;DR

  1. Amazon is all AI in all teams

  2. Shopify unveils an AI assistant

  3. AI influencers are the new cool kids on the block

  4. Meta rolls out chatbots to get engagement going

Amazon Bets Big on AI

During Amazon's latest earnings call, CEO Andy Jassy revealed every team is working on generative AI projects - from operations to customer experiences.

Jassy called AI a "significant investment and focus," saying it will be "at the heart of what we do."

So what's cooking? Jassy hinted we may see some AI upgrades for Alexa devices at Amazon's event next month. Job listings also suggest the company wants to spice up its search engine with more natural conversations.

Amazon's all-in AI approach echoes other tech execs like Apple's Tim Cook, who said AI is "virtually embedded" in Apple products now.

The takeaway? Amazon's going hard on generative AI across the board. With its resources, the company could flex its AI muscles in both internal ops and customer-facing areas.

What does this mean for ecommerce sellers? 

For other ecommerce sellers on D2C or marketplaces, this might mean integrating AI in their own customer experience to match Amazon. For Amazon sellers, it will likely mean changes in the A9 algorithm and how Amazon prioritizes listings, impacting growth.

Shopify Unveils AI Assistant for Ecommerce

Shopify's joining the AI party with Shopify Magic - tools to help merchants level up with generative AI. Their new chatbot Sidekick is like ChatGPT but for your online biz.

Sidekick can answer questions like "How do I set up a sale?" and "Help me get to know my customers." It can summarize docs, research products, and create reports on your top sellers.

This AI assistant can even redesign your shop by adding collections or suggesting homepage banners.

In a demo, Sidekick helped a merchant figure out slow sales by showing how weather can hurt snow gear demand. Then when asked to "put everything on sale," it instantly suggested a 10% storewide discount.

 What does this mean for ecommerce sellers? 

It could be a gimmick if the AI lacks sophistication. Or it may help optimize things quickly and replace some of the manual reporting. Serious merchants will judge based on AI capability. Easier optimization could help smaller sellers.

Are Virtual Influencers the Future?

Get this - the influencer Lil Miquela is set to bank over $10 million this year working with brands like Chanel and Calvin Klein. She's also one of Time's top 25 internet peeps. But a plot twist - she's not a real person!

Lil Miquela is leading a wave of virtual influencers dominating social media. Imma, Blawko, Shudu - none of them exist IRL.

This could shake things up big time for social media marketing. We've seen companies like GymShark and Glossier blow up using influencer partnerships. Brands might want to make their own virtual spokesmodels now.

The virtual influencer biz is projected at $3 billion and counting. Wild, right? From fake CGI models to real money.

Also, have you checked out the first AI modeling agency?

What does this mean for ecommerce sellers? 

Virtual influencers could be a game changer for ecommerce - with full brand control, non-stop availability, and cost savings, they're looking like the next big thing. But beware, as these could also spark customer distrust or unforeseen legal troubles.

Meta Rolls Out Chatbots

Meta is developing AI-powered chatbots called "personas" to increase engagement on Facebook and Instagram, reports say. This move comes as Meta faces the heat from TikTok.

These "personas" can have different personalities - think Abraham Lincoln or a surf bro travel advisor. They'll chat you up like a real human. Meta's invested big in AI (think Llama 2 model), so these bots can get pretty lifelike.

Zuck says these AI agents can be assistants, coaches, and even customer service. However, some experts have concerns. One AI ethicist warns that bots may expose users' personal data once conversations begin.

Others worry it could exacerbate social media addiction issues. But Meta believes artificial personas could provide an interactive, entertaining element despite risks. The company plans to introduce the chatbots as early as September.

What does this mean for ecommerce sellers? 

Chatbots on social could enable conversational commerce and virtual shopping assistants. But data privacy issues may be a concern.

The Quick Read:

  • Meta is developing new AI features for Facebook and Instagram, including tools to label content generated by its AI systems. Leaked screenshots reveal Meta is building the ability to tag posts as "generated by Meta AI."

  • Uber is developing an AI chatbot to integrate into its app. While specifics are unclear, it would likely aim to streamline operations and boost user experience.

  • Google plans to upgrade its Google Assistant with generative AI technology similar to ChatGPT

  • Google is gradually improving its AI-powered Search Experience by adding more video and images to result summaries. See below.

The Tools List:

PostWise - Write Viral Tweets in Seconds using AI

Insight7 -Unlock customer insights with AI

Robofy -Create a personalized chatbot with your website content

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