Understanding Consumer Evolution and Impact of Augmented AI

While the impact of exponential technologies, specifically artificial intelligence, makes us believe that we are experiencing its peak period, the reality is that this technology, along with many others like machine learning, augmented reality, and virtual reality, has been part of this digital ecosystem for several years. For at least the past four years, these have been standard resources for modern retailers.

This indicates that we are not yet in the peak period but in the phase of adoption and maturation of their use, which allows us to prepare as an ecosystem and take full advantage of them. It should be noted that, according to the World Economic Forum, by 2027, approximately 75% of companies will have adopted AI technologies, with 80% planning to accelerate automation within the same period.

Moreover, this evolutionary path is marked by the consumer's use of this technology. This maturation would not be complete without a proactive consumer. The democratization of AI usage in 2022, marked by the launch of OpenAI's flagship product, ChatGPT, was a significant milestone for retail, but even more so for consumers. Since then, they have had an intuitive tool that permeates not only their consumer behavior but also their everyday actions, creating new behaviors and demands.

Therefore, since the AI boom, there has been a notable evolution in consumer behavior. Initially, consumers were surprised and captivated by the personalization and convenience offered by AI on e-commerce platforms. Later, they began to demand even more personalized and contextual experiences, challenging retailers to continuously innovate. Currently, we are in a phase where consumers value authenticity and transparency, seeking brands that share their values and offer genuine experiences.

Since augmented artificial intelligence plays a fundamental role in creating these experiences, it allows retailers to understand and anticipate consumer needs more precisely than ever.

It's not just about innovating for originality, which is not as simple as it seems. It's about understanding when and how exponential technologies can increase opportunities.

For example, Mercado Libre has integrated artificial intelligence beyond the shopping experience, incorporating it into various areas of its operation. In its fintech division, MercadoPago, the platform uses AI to assess credit risk and prevent fraud. For consumers, AI allows Mercado Libre to gather product reviews.

Another emblematic case demonstrating AI adoption in retail is Zara, the flagship brand of Inditex. This company has integrated artificial intelligence in various aspects of its value chain, from inventory management to personalizing customer experiences. Using machine learning algorithms, Zara can predict fashion trends and adjust its production in real time, reducing waste and ensuring that store items reflect the latest market demands. Additionally, they have implemented chatbots and virtual assistants on their e-commerce platform to provide 24/7 customer service, significantly improving customer satisfaction and optimizing response times.

The eCommerce Institute is also a valid case to observe, having implemented artificial intelligence through its Commerce Society AI initiative. This initiative acts as a Digital Commerce Personal Trainer for any company or venture aiming to accelerate its sales through digital channels. This tool functions as an essential co-pilot for any digital channel manager, providing solutions to concerns, problems, and challenges. It offers comprehensive support in areas like technology, infrastructure, platforms, operations, logistics, customer service, marketing, promotions, marketplace sales, financial aspects, and campaign creation, among others. Commerce Society AI is a comprehensive solution for collaborative augmented and generative artificial intelligence designed to optimize and enhance every dimension of digital commerce, facilitating adaptation and success in today's competitive market.

The strong trend toward simplification and adaptation is increasingly evident in customer interactions. For example, when customers request information and automatically receive a selection of suggested products. On the commerce side, AI can propose relevant titles for their listings, considering buyers' search trends, resulting in greater efficiency and productivity.

Investing in this technology not only improves the experience by simplifying internal processes, like those mentioned, but also logistical ones. A clear example is the $22 million investment announced by Rappi, aimed at expanding its presence and improving its services, driven by AI. Through data analysis and artificial intelligence, Rappi can accurately calculate order preparation times and find the best routes for delivery, resulting in a 30% increase in orders delivered in less than 35 minutes.

Such examples multiply when exploring the digital ecosystem of the region, which continues to grow despite the myriad of challenges each inflection point presents. Nevertheless, it is undeniable that consumers are demanding increasingly personalized, relevant, and seamless experiences. The biggest challenge now is not just implementing the right technology but also not losing sight of the consumer in our efforts to stay ahead.

As an ecosystem, we have everything in our favor: technology, key players, strategic partners, a favorable context for hybrid experiences, and a consumer eager to navigate them. We just need to be unified and do it collaboratively, and intelligently.