My 2024 Marketplace Predictions: The Rise of AI
And how AI Will Transform Online Marketplaces in 2024
Hello fellow subscribers,
As we finish up 2023 and look ahead to 2024, I wanted to share my predictions for the key opportunities and challenges coming up for marketplaces around the adoption of AI and related technologies (as I already did for Product Management in this article)
I include in this article:
Key Features in 2024 for Marketplaces
🔒The Upside and Downside of AI
🔒 Key Industries to Watch in 2024
Key Features in 2024 for Marketplaces
Here are some key features I see progressing, especially with the rise of AI:
Personalization
More marketplaces will use reinforcement learning algorithms in 2024. These algorithms optimize recommendations over time based on customer behaviors and changing preferences. They will be used to custom-make not only recommendation and substitution engines but entire storefronts and views that will be unique per customer.
Conversational Commerce
Conversational interfaces will enable deeper product discovery and transactions. Advanced natural language processing will power highly helpful chatbots. Voice commerce platforms will also expand.
Operations
Operations automation will accelerate - process mining, robotic process automation, and AI will drive cost reductions and quicker resolutions in areas like disputes, logistics, and customer service.
Anti-Fraud
In anti-fraud, innovations like generative graph learning will enable more proactive prevention by spotting suspicious patterns early. Decentralized digital identity frameworks will also help prevent fake accounts.
Dynamic Pricing
Dynamic pricing will grow more sophisticated as multi-agent reinforcement learning and algorithmic game theory help marketplaces optimize complex pricing strategies between buyers and sellers. I believe we will begin seeing pricing for specific purchases depending on the time, date, bundling, subscriptions, etc…
Recurring Subscriptions
Personalized discounts will be offered to customers who commit to recurrent subscriptions or bulk purchases on a monthly or regular basis (like Amazon has successfully done). Marketplaces will leverage data to optimize customized subscription packages and pricing.
The Upside and Downside of AI
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