Let's Get Ethical: AI in ECommerce

AI has taken the world by storm, and eCommerce is no exception. But as there is with every new technology, there is an equal amount of concerns and excitement. With so few laws that have been put in place for the proper use of AI, merchants and users alike are having to turn to ethical considerations to see the right or wrong ways to use AI in their eCommerce. 

Are you looking to integrate ethical AI services into your eCommerce business? Let’s talk. 

Common Ethical Concerns for Using AI in ECommerce 

There are many concerns that people have raised, but here are some of the most common ethical concerns. 

Data Privacy Concerns

Perhaps the most common and wide-spread ethical concern for the use of AI is data privacy. ECommerce merchants hold a lot of customer information. Think about the information you put in when you make a purchase: at the very least, you’re sharing your name, address, and billing information. And that’s just the tip of the iceberg. 

Some customers are concerned about the implications of AI having access to such information. AI doesn’t just have access to information, but it also can be used by the AI for learning and reusing. Often, this means AI having access to your information for longer than you consent to. 

The most common concern is data breaches. No system is infallible, from websites to AI. Customers want to make sure that their information is safe and secure. 

Data Bias Concerns

There have also been concerns regarding how using AI may unintentionally cause bias to seep into the algorithm. There are a few different types of data bias: selection, historical, and measurement. 

Selection bias is when data being used for a decision is not representative of the whole target group, which will skew the results. 

Historical bias is when the data being used is outdated, which means any conclusions drawn from it will also be outdated. 

Measurement bias is when the way the data is collected incorrectly, causing all the measurements to be inaccurate. 

Any or all of these data biases could cause AI to do more harm than good. 

Customer Trust Concerns 

No business can survive without the trust of their customers. It doesn’t matter the product, the service, or the authority of the brand. Without trust, businesses fail. Customer trust can’t be bought, it takes hard work and dedication to nurture. And once you lose that trust? It’s 10x harder to get back. 

AI is incredibly helpful in a number of ways, like examining, predicting, and influencing customer behavior. But with the use of this technology comes risks. If your customers don’t understand how you’re using AI and what information of theirs it will have access to, they become wary. Even worse is if you try to use AI without informing them. They won’t become wary; they’ll become angry and lose any trust they had in your business. 

How to Address These Ethical Concerns  

While there are ethical concerns around the use of AI in eCommerce, it doesn’t mean there aren’t ways to use AI ethically. Here are a few ways to address these ethical concerns, without sacrificing the use of AI or the trust of your customers. 

Be Transparent

According to a study by Accenture, less than 50% of customers feel like they are given enough information to understand how AI is being used for their personalized eCommerce experience. If you want to use AI for your eCommerce business, your customers have a right to know. Inform them what AI you are using, what it does, what information it has access to. The more clear you are about what it is, the more likely your customers are to understand it. 

Some of your customers still might be uncomfortable with the idea of AI having access to their information. If you can, offer a way for them to opt-out and keep their information in their own hands. 

Be Proactive

Be proactive, not reactive. Work to mitigate ethical concerns before they begin. 

For example, to be proactive and fight data bias concerns, you should be regularly conducting audits to make sure the data is diverse, up to date, and collected correctly. If it is not, you should be making sure that the AI has access to data that is representative of your customers. Checking the data regularly can help prevent data bias. 

Remember, AI is a Tool, Not an Employee 

One of the biggest pitfalls of AI use is that businesses believe that it should replace an employee. It shouldn’t. AI is a tool for employees to use, but it can’t replace the job of one. 

Think about calculators. Calculators are a great tool for helping you solve math problems, but they only work if you insert the problem into the calculator. For some problems, it doesn’t matter how you put it in, the calculator will find the answer regardless. For more complex problems, it’s more important to carefully insert the problem to make sure it is done in the right order to get the right answer. 

AI is very similar. A helpful tool when used right, it can’t do anything without a guiding hand.

Streamline Your ECommerce AI 

Fyresite is a trusted and proven eCommerce partner. Want to integrate ethical AI into your eCommerce store? Let’s talk.