How AI affects Consumer Behavior Business & Marketing Essay

How AI Affects Consumer Behavior
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How AI affects consumer behavior
Introduction
AI is the act of developing smart machines that can mimic human intelligence. This discipline empowers machines to perform tasks that can be done by humans. It employs techniques such as deep learning and natural language processes to create sophisticated systems. These methods allow machines to learn to perform human-like tasks through examples and experience. (SAS Insights, 2020). AI makes a machine behave like a human brain.
1.0 Applications of AI in business
SAS Insights (2020) describes three key applications of AI: retail, banking, and cybersecurity. AI systems are applied in chatbots. These automated website functions help retailers offer online customer care services. The application can initiate and hold conversations with customers. It has the power to grasp the natural language of humans. By using chatbots, retailers help customers get any product or company information similar to a sales representative.
AI systems are used in fraud detection in financial institutions. The use of machine learning processes enables computer systems to process large quantities of data and identify legitimate transactions. So, a bank can single out any fake transactions within the system. For instance, Plaid is a leading banking security application using AI. It is known for its enhanced fraud-detection capabilities.
AI solutions provide robust security features for data security. An algorithm-based system ensures that threats are detected and blocked in real-time. AI platforms guarantee that businesses can protect their database from any malicious attacks. Some examples of AI systems include Secure User Authentication, Biometric logins, Network Intrusion Detection, and Prevention.
2.0 How AI affects consumer exposure to ads/ products
The digital market revolution has led to the availability of considerable quantities of data. AI systems have automated systems that help process this data and gain valuable consumer insights. AI-powered solutions enable companies to detect any consumer patterns within the market. This information aids companies tailor their ad to reach their target m...