Staff Articles

Revolutionizing E-Commerce with AI: Implementing Phygital Technology

From virtual showrooms to real-time smart shelves, see how the future of seamless, interactive experiences is here.

1. The Rise of Phygital Experiences in B2B E-Commerce
2. How AI Drives Phygital Transformation
3. Practical Applications of Phygital Technology in B2B
4. Challenges in Implementing Phygital AI Solutions
5. The Future of Phygital Technology in B2B E-Commerce

The emergence of adaptive commerce powered by artificial intelligence (AI) is revolutionizing the concept of e-commerce for various enterprises in the B2B vertical. However, its employment is not confined to customers’ insights or product recommendation—it is venturing into a new domain that blends the physical with the digital realm, the “phygital.” Thus, using AI in physical applications, B2B e-commerce firms are developing a seamless, engaging shopping journey for their clients that merges online and offline environments. Here is how physical technology, with support from AI, is disrupting B2B e-commerce and some tips and tricks based on our experience.

1. The Rise of Phygital Experiences in B2B E-Commerce

With the increasing rate of online buying and selling, there is also the need for B2B firms to respond to new customers who prefer online business but also embrace the tangible touch. Physical is the integration of digital interfaces and AI data analysis with tangible and physical touchpoints to deliver the best of both worlds.

This makes physical technology most suitable for industries including manufacturing, retail, and wholesale because the buyer may wish to touch, feel, or even play with the commodities before purchasing them. For instance, through AI-AR and AI-VR applications, B2B organizations can provide interactional product samples where customers can see products pertaining to the showroom.

2. How AI Drives Phygital Transformation

AI is central to designing the physical experiences that are integrated effortlessly into a consumer’s life. It offers insight on how best to integrate physical and digital interactions to ensure that customers get a seamless experience across both domains. Here’s how AI supports different aspects of physical experiences:

  • Predictive Analytics for Personalization: Machine learning tools process large amounts of data about customers’ behavior and their preferences, which enable B2B companies to provide recommendations. When a client is physically present in a showroom or watching a virtual demo, the AI system can serve information based on digital engagement, making it a very relevant physical one.
  • Real-Time Data Integration: Digital and physical experiences must have interoperability to allow for the transfer of data throughout the interaction sessions. Technologies such as AI are able to consolidate information flows from various sources to guarantee that customers present in online stores as well as physical stores are provided with the most recent data in regards to the available stock, prices of various products, and exclusive offers.
  • Enhanced Customer Service with Chatbots and Virtual Assistants: Automated digital assistants and bots respond to customers’ questions or concerns instantly, assisting them with understanding the various products or resolving to make the right purchases. Such tools can work online or can be provided in the form of kiosks within the organization to maintain the uniformity in terms of support.

3. Practical Applications of Phygital Technology in B2B

B2B e-commerce companies are finding unique ways to implement phygital technology. Here are some notable examples:

  • Virtual Showrooms and Product Demos: Industries such as heavy equipment and machinery that rely on the tactile demonstration of products are adopting virtual showrooms powered by artificial intelligence. Customers can walk through these showrooms with VR headsets with the guidance of an AI system to check details of products, watch demonstrations of the products, and even experience the operational environment of the products and services, making the customers more confident in their purchase.
  • Smart Shelves and Inventory Management: In retail and distribution, physical technology operates together with smart shelves powered by artificial intelligence, which help in tracking stock levels in real-time. A client who visits a physical store or showroom can easily identify available stock as opposed to online ordering, which decreases lead time. This format is particularly suitable for B2B processes that require stock turnover in a short period.
  • Interactive Kiosks and Self-Service Solutions: To increase overall client satisfaction, physical location AI kiosks offer instant information regarding relevant products, previous purchases, and detailed product information. B2B clients can use these kiosks with digital profiles to continue the transaction from where it left off online, making the client journey seamless.

4. Challenges in Implementing Phygital AI Solutions

While phygital AI technology offers numerous advantages, its implementation in B2B e-commerce isn’t without challenges.

  • Data Integration Complexity: In order to have a comprehensive integration, an AI solution has to gather information from different systems such as the CRM, ERP, SCM, and more. It becomes quite complex especially in cases where there has been application integration in environments where there is a lot of infrastructure legacy.
  • Privacy and Security Concerns: There are two main privacy issues with the collection and usage of real-time customer data. Data policies should also be in place, especially for the B2B companies, as they seek to address different standing rules like the GDPR and the CCPA. However, it was also identified that, as a part of phygital, some of the information about products and/or transactions may be sensitive in nature; thus, the security measures needed to be strong.
  • High Initial Investment: Lack of funds to purchase hardware such as the VR headsets, as well as the cost of integrating new AI software, can also pose a problem. To complement this, B2B firms might have to undertake comprehensive ROI analyses to prove that such spending leads to a worthy value-add down the line.

5. The Future of Phygital Technology in B2B E-Commerce

As the AI technologies deepen and advance in the future, the possibilities of physical experiences in B2B e-commerce will grow to even greater heights. New technologies include generative AI that would allow virtual assistants to be more qualitative in their support and IoT that can promise even higher levels of integration of physical and digital interactions. Organizations that are the first to tap into these innovations are likely to have the upper hand by providing levels of customer satisfaction and convenience that have not been witnessed before.Thus, the future of B2B e-commerce is in striking a balance between the tangible feel of the traditional way of closing deals and the rationality that digital platforms offer. The combination of physical experiences delivered through the B2B e-commerce business with support of AI solutions will not only increase client satisfaction but would also increase sales and organizational effectiveness, thereby enabling the B2B e-commerce business to become a modern customer-focused organization.

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