Artificial Intelligence: What is it, how does it work, and how can it improve your customers’ payment experience?
The creation of machines with human intelligence has been
prevalent in film and literature for a long time, and usually depicts a
struggle between man and machine as the creation attempts to usurp its creator.
From Frankenstein to I, Robot to the Terminator series, the vast potential of AI to disrupt our world
has long been at the forefront of popular culture. Recent advances in machine learning
systems have, however, brought AI into our lives in a much more integrated and
productive way. In the near future, AI’s influence will continue to grow as we
discover new and innovative ways that it can improve our world.
What is AI?
Artificial Intelligence is a competency built into machines to allow them to learn from experience, adjust to new inputs and external stimuli, and perform tasks automatedly. The most commonly recognisable devices using Artificial Intelligence are smart speakers such as the Amazon Echo, which uses a human voice to obey users’ commands. But AI doesn’t necessarily need to deploy obviously human traits like Alexa’s voice. Much of the work that AI does is deep within the hardware of a system or device, with no ostentatious ‘intelligent’ functions that can be seen by the user.
How does AI work?
Broadly speaking, Artificial Intelligence works because the algorithms built into AI systems can discover patterns and generate insights based on the vast swathes of data that they’re exposed to. They are able to interpret the data and extrapolate forward into the future, thereby making accurate and useful decisions and predictions. Devices which use AI technology can sidestep the need to be programmed for every single possible action. In the same way that a child can learn previously unthinkable truths in a classroom, devices fitted with AI systems can learn about the previously unknown world they operate in, thanks to the data touchpoints they constantly monitor.
How is AI changing the online shopping experience?
Personal shopping assistance
Artificial Intelligence uses insights to create a
personalised experience for the customer by analysing data and recommending the
best products and services based on the results. AI tools understand the
consumer and can make accurate predictions as to exactly what they need,
reducing the time spent browsing through potential products. Chatbots on
e-commerce platforms are a prime example of merchants taking customers from the
front door of their website directly to where they need to go, bypassing the
stages in between.
AI prevents payment fraud in real-time by analysing
transactional data at lightning speed, and recognising anomalous or strange
behaviour, which is instantly flagged up. As a result, fraud teams investigate
surreptitious behaviour more accurately, and can react quickly to criminal
activity. The continuing shift to ‘card-not-present’ payments – online and via
apps – means that fast approval is needed because of consumers’ increased
demand for instant transactions. With physical cards not available for
additional verification, fraudsters have a window of opportunity they can
attempt to clamber through. Anti-fraud measures therefore have to be even more
stringent. AI sifts through historical data at careering speeds, identifying
patterns associated with fraud and making quick adjustments to algorithms and
rule-based logic without having to fall back on human interference.
AI streamlines processes throughout the customer journey,
improving the overall customer experience by driving simplicity at every stage.
This simplicity manifests itself in myriad ways: on a manual level, for
example, machines can collect and prepare products for delivery in the warehouse,
meanwhile on a technological level, e-commerce platforms can tailor the
shopping experience based on the geographical location of the shopper. The true
power of AI moving forward lies in the ability of AI-enabled systems and
devices to figure out by themselves how processes can be made more efficient,
and to implement the necessary changes to achieve this.
Trust Payments use cutting edge, AI-based fraud and risk management systems to fortify our pan-European omnichannel payment solutions. Offering a full-suite of payment methods and an integrated gateway and acquiring payments ecosystem, our team of experts offer vertical-specific expertise to help ambitious businesses develop future-proof payment strategies.
To find out how Trust Paymentscan harness the power of AI to power your business into a more prosperous future, get in touch with us using our contact form.
By Trust Payments|2021-02-26T16:07:21+00:00June 19, 2019|Ecommerce|Comments Off on Artificial Intelligence: What is it, how does it work, and how can it improve your customers’ payment experience?
Trust Payments Ltd, No.1 Royal Exchange, London, EC3V 3DG. A company registered in England and Wales with Company Number 11976895.
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