Artificial intelligence for retailers

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Published Apr 22, 2017

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Washington - Artificial intelligence being touted as a tool for addressing some of humanity's most pressing problems.This includes climate change

and cancer, but starting this week you can put it to work for something a

little more prosaic, ordering a hoagie.

MasterCard announced on Tuesday it has partnered with

Subway and two other major merchants to launch "chatbots," which are

robots that simulate human conversation. The Subway iteration allows you to

order a custom sandwich for pickup, something of a digital version of walking

down the chain's sandwich assembly line.

There's another from Cheesecake Factory that allows shoppers

to purchase and send out gift cards, and a third from online grocer FreshDirect

in which customers can place orders for groceries and meal kits. The bots will

be found within Facebook's popular Messenger app, and will be powered by

Masterpass, the credit card giant's digital wallet.

These big name brands join a growing group of retailers that

are experimenting with how chatbot technology can be leveraged for digital

shopping. The debut of the bots will provide a fresh test of shopper appetite

for what the industry has dubbed "conversational commerce," the idea

of making a purchase or other customer service transaction through A.I.-powered

messaging.

FreshDirect said its foray into chatbots in part reflected

the changing reality of how customers use their Smartphones

"We know that asking someone to download an app, it's a

hard thing to do now," said Lisa Kolodny, FreshDirect's vice president of brand

marketing and communications.

Read also:  Artificial intelligence can't replicate brains

Here's what Kolodny means by that: Consumers are spending

more time online, and yet they are concentrating those minutes in a very

limited number of apps.

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Retailers along with hotels, rental car services, and other

businesses are realizing that the best way to snare your interest online might

not be with a killer app of their own, but by creating bots that live in the

apps that you already use.

Facebook has said that more than 33 000 bots have been

created for its Messenger app so far.

This latest batch demonstrates how differently businesses

are approaching the technology at this early stage of the game. Subway, for

example, essentially tried to re-create its in store experience on the small

screen. In a demonstration of how the technology works, the bot asks what kind

of cheese you prefer, how thick a coat of mayonnaise you want, and so on, all

in a very chatty voice.

"We talk a lot about communicating not as a brand, but

as a friend, and really engaging with your consumer in a very personal

way," said Linda Kirkpatrick, Mastercard's executive vice president of

merchants and acceptance.

Meanwhile, Cheesecake Factory decided to use the bot for

gift cards because it reflected what customers are often doing when they come

to one of their nearly 200 restaurants.

"We are a place that a lot of people go for

celebrations," said Donald Evans, the restaurant's chief marketing

officer. FreshDirect's bot will try to play on the social nature of the

Messenger experience. It allows shoppers to form a group thread in Messenger,

so that multiple people can collaboratively build a grocery list.

Kolodny said they envisioned this being used by big families

or groups of friends as they join up for summer trips to beach houses or

campgrounds. But perhaps spouses or a group of roommates could use it for more

routine shopping trips.

Subway's bot was rolled out to customers on Tuesday; the

ones from FreshDirect and Cheesecake Factory are still in pilot mode and will

be made available for wider use in the coming months. So just how big a role

will chatbots play in the future of shopping? At this point, it's hard to know.

For starters, consumers simply haven't had that many

opportunities to engage with them yet: According to a survey by Forrester

Research, just 4 percent of companies have a chatbot. Plus, the long-term

potential of the technology has not been fully realized.

"This isn't yet what I would call an efficient medium

for the exchange of data," said Julie Ask, a consumer technology analyst

at Forrester. "It still has a ways to go before it's more convenient than

the other options that consumers have."

Right now, bots are typically designed to help with

specific, narrow tasks. But, as Ask puts it, these bots typically can't handle

"a wide-open wish."

As those changes, consumers might be more apt to make a

habit of turning to bots for help.

WASHINGTON

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