Google Uses AI to Help Businesses Improve Their Profit Margins
Sun, April 18, 2021

Google Uses AI to Help Businesses Improve Their Profit Margins

Google is focused on making sure websites for online shopping do not crash / Credits: Waraporn Wattanakul via Shutterstock

 

Artificial intelligence has changed the world of online shopping. AI has been helping online retailers boost their profits in many ways. This includes analyzing more data exponentially quicker to help retailers design incentives based on unique shopper behaviors. They can also learn about the needs of the users and offer products that they need or want. In return, this helps increase sales and customer satisfaction.

In 2019, the Black Friday sales in the US hit a record of $7.4 billion. Meanwhile, sales for brick-and-mortar stores dropped by 6.2% during that event. This shows that users are indeed embracing the world of online shopping. But AI can help businesses profit more – and this is what Google wanted to do. Recently, the tech giant announced that it would be using AI to help businesses improve their profit margins.

“We’re helping retailers with Google A.I. to help drive their ability to do promotions, recommendations, improve their margins with dynamic pricing. So it’s really helping that retail C-suite deliver on all of their financial goals,” Carrie Tharp, Google Cloud’s head of retail, said. 

According to CNBC, the world leader in business news and real-time financial market coverage, Tharp’s comments on the retail landscape were related to Cyber Monday, a marketing term for the Monday after the Thanksgiving holiday in the US which encourages users to shop online. It was predicted to generate more than $9 billion in sales. Google Cloud intensely focused on making sure websites do not crash.

This move aims to prevent the issues faced during Black Friday or Cyber Monday in 2018. A Google survey showed that 10% of companies had their websites crash during those days, while 40% said it happened during the last three years. This, if it continues to happen, represents a potential loss of revenue for businesses. Thus, Tharp stated that her team has engineered “sitting with them through the actual weekend in their war rooms, making sure their systems scale no matter what happens so that there’s never a break-the-internet moment for one of the retailers hosted on Google Cloud.”