Exploring the Latest AI Model Developments

Do you ever feel like you’re suddenly running all the time to keep up with the fast-changing world of eCommerce? We get it. 

The competition is tough, customer expectations are off the charts, and let’s be honest: there are only so many hours in a day. But the good news is that a powerful assistant has arrived to help you smooth things out. It’s an artificial intelligence model (AI). 

You may be thinking, “AI? Isn’t that for tech giants and sci-fi movies?” In fact, according to Accenture research, this technology could increase business productivity by 40% by 2035. AI tools designed specifically for small businesses are more accessible and affordable than ever.

Even more interesting?

A Harvard Business Review research shows that businesses that use AI in sales can increase leads by more than 50% and reduce costs by 40-60%. So, if you dream of growing sales, optimizing operations, or pleasing your customers, AI may be the right choice. 

In this article, we look at the latest trends in AI model development.

Understanding of the AI models

You’ve heard the term “artificial intelligence model”, but what exactly is it? Simply put, it’s like a super-smart computer program that has been trained on a lot of data. This training allows the AI to recognize patterns, make predictions, and even perform tasks that usually require human intelligence. 

There are a few types of AI models you might come across:

• Machine Learning Models.

• Natural Language Processing (NLP) models.

• Computer vision models.

Now, we have programs that can recognize faces, translate languages, generate creative content, and even diagnose diseases. But even with all this progress, AI is still in early development. 

How good is AI?

You may be thinking, “All this AI talk sounds promising, but does it deliver results?” The answer is YES.

This technology is already changing the eCommerce:

• Companies using AI for personalization see a 10-20% increase in sales and a 3-5% lift in revenue. If you have an online store on Magento, learn how to improve personalization with AI tools on the platform from our blog post: AI eCommerce personalization for Magento 2 growth.
• AI-powered chatbots can provide instant 24/7 customer support, improving audience satisfaction and retention. 
• AI-driven inventory management systems can reduce out-of-stock by 80% and decrease inventory costs by 5-10%. We took a closer look at AI’s potential for inventory management in our article “The Role of AI in E-commerce Inventory Management,” which you can find here.
• According to a McKinsey report, artificial intelligence models can potentially increase e-commerce profitability by 59%.

These are just a few examples of how AI developments already impact eCommerce. As technology evolves and becomes even more accessible, its potential is limitless. 

10 AI developments in 2024

Artificial intelligence is moving at a breakneck pace. 2024 promises to be a pivotal year for groundbreaking advances. 

As a small business owner, tracking artificial intelligence developments is critical.

Generative Adversarial Networks

Generative Adversarial Networks (GANs) consist of two neural networks: a generator that synthesizes novel data samples (such as images or text) and a discriminator that assesses their authenticity. This dynamic interaction drives the networks to progressively refine their performance, leading to the generation of increasingly realistic and complex outputs.

The technology holds the potential to produce high-quality product images, personalized marketing materials, and virtual influencers. As GANs become more advanced and accessible, businesses can harness their capabilities to enhance brand identity, engage customers effectively, and optimize content production workflows.

Artificial Superintelligence

Artificial Superintelligence (ASI) is thought to be smarter than humans in every way. This idea has caused a lot of excitement and worry because it could change the course of human history. While ASI is still just a theory, advancements in AI research and development are bringing us closer to making it a reality.

Shortly, people will talk more about ASI as researchers and policymakers think about how it could affect ethics, society, and even the meaning of life.

Multimodal AI models

Unlike traditional models that focus on a single type of data (e.g., text or images), multimodal AI models can process and understand information from various sources.

In 2024, you’ll see multimodal AI popping up everywhere, especially in e-commerce. It will also improve marketing. Imagine creating campaigns that combine stunning visuals with compelling text generated and optimized by artificial intelligence. This can lead to more engaging ads, higher click-through rates, and sales.

The concept of using AI to enhance the user experience is explored in depth in our article: AI in User Experience (UX) Design: An Innovative Perspective.

Explainable AI

You know that feeling when you get a decision from a company or a government agency, and you’re just left wondering, “How did they come up with that?” Well, that’s the problem with a lot of AI systems today. They make decisions, but it’s hard to know why.

Explainable AI (XAI) is all about making artificial intelligence development more transparent and understandable. Instead of just spitting out an answer, XAI systems can explain their reasoning, showing you the factors that influenced their decision.

For e-commerce businesses, XAI could help you understand why certain products are recommended to specific customers or why certain marketing campaigns are more effective than others. For example, Shopify is using AI to help merchants make informed decisions about their businesses. To learn more about this case, read our article Shopify AI: transforming your eCommerce with Shopify magic.

Natural Language Processing (NLP)

If you’ve ever asked Siri a question or used Google Translate, you’ve experienced Natural Language Processing (NLP) in action. This field of AI focuses on teaching computers to understand, interpret, and generate human language. In 2024, NLP is set to become even more sophisticated and impactful for businesses.

Expect to see NLP powering more advanced chatbots and virtual assistants that can handle complex customer inquiries, even understanding nuances and emotions in language.

NLP will also play a vital role in content creation and marketing. AI-powered tools can analyze customer feedback, social media posts, and market trends to generate compelling product descriptions, social media posts, and even entire blog articles.

The EvenFlow AI

Imagine a tool that can help your business run like a well-oiled machine, balancing supply and demand perfectly. That’s the idea behind EvenFlow AI, a platform specifically designed for car dealerships to streamline their service scheduling and boost profitability.

The EvenFlow AI model uses smart algorithms to analyze customer demand patterns, identify peak and off-peak times, and dynamically adjust pricing to optimize capacity. It also allows dealerships to create personalized service bundles.

Reinforcement Learning (RL)

Reinforcement learning (RL) is a type of machine learning in which an AI agent learns by interacting with its environment. The agent performs actions, receives feedback in the form of rewards or punishments, and adjusts its behavior accordingly to maximize the reward.

RL is also gaining momentum in robotics, where it is used to train robots to perform different tasks. We can expect robots to be able to perform even more complex tasks.

Predictive AI analytics

It goes beyond simply reporting what happened in the past to forecast what’s likely to happen in the future. By analyzing historical data and identifying patterns, predictive AI can accurately predict customer behavior, sales trends, and potential risks.

For e-commerce businesses, predictive AI is a game-changer. It can help you:

• Anticipate customer needs
• Optimize inventory
• Identify potential risks

With intuitive interfaces and pre-built models, you can harness the power of predictive analytics without needing a data science degree.

Shadow AI (AI in the workplace)

Often referred to as “shadow AI,” this phenomenon refers to the use of AI-based tools and systems to automate tasks, empower humans, and optimize processes. For example, chatbots can handle customer inquiries, freeing up customer service representatives for more complex tasks. Algorithms can analyze sales data to identify trends and patterns, helping marketers develop more effective strategies.

The emergence of shadow AI raises important questions about the future of work and the skills that will be in demand. Workers will need to develop skills like critical thinking, problem-solving, and creativity.

Support Vector Machines

Support Vector Machines (SVM) are types of machine learning models that are great at classifying things. 

How does it work?

SVM looks at your data and finds the best way to draw a line (or a hyperplane, if you’re feeling fancy) that separates different categories. In the customer review example, it might find a way to separate the positive reviews from the negative ones based on the words and phrases used.

They can be used for everything from detecting fraud to predicting customer churn to classifying products.

The latest trends in AI model development

Think about it: the most interesting AI is not only what it can do, but also how reliable, eco-friendly, and easy to use it is. Keep an eye on what’s happening in the background: better rules, improved ways to manage systems, better training methods, etc.

Some of the biggest trends in AI model development in 2024:

1. Thanks to advances in cloud computing and open-source tools, AI is becoming accessible to small businesses.
2. With the rise of zero-sided data, it can create highly personalized shopping experiences.
3. Businesses that prioritize responsible AI will build trust with their customers.

These trends point to one thing: AI is becoming an increasingly practical, affordable, and responsible tool for companies of all sizes.

So we’ve covered trends, but why should you care about keeping up with all this stuff?

Ignoring AI means risking falling behind competitors already using it to streamline operations, personalize experiences, and increase profits. Staying informed helps you spot new opportunities.

Summing up

So, what’s the takeaway from all of this AI talk? Simply put, AI is changing the game for businesses of all sizes.

But here’s the thing: the artificial intelligence model isn’t just about fancy technology. It’s about finding smart solutions to real issues. It’s about using data to make better decisions, automating tasks to free up your time, and ultimately, growing your business.

Start small, experiment with different tools, and see what works best for you. The world of AI can be complex, so sometimes you need an expert. Alva Commerce is always here to help you.