The Ultimate Guide to Behavioral AI for Online Businesses
Log into any website, and chances are the images and texts are AI-generated. Browse the internet, and you might find dynamic ads for products and services that interest you. Chances are that comes from behavioral AI. As the shift from brick-and-mortar stores and traditional shopping to online continues, the pressure mounts on these online businesses to keep members like you satisfied and coming back. So, the stage is set to learn the continued impact behavioral AI has on online businesses.
What is Behavioral AI?
Behavioral AI is an AI system that specifically studies and analyzes human behavior and actions. For example, when visiting an online site, behavioral AI catalogs in databases the pages, products, videos, etc that you browse. This data is stored in databases to be analyzed for further review and implementation throughout the online business.
The benefits of behavioral AI are numerous on many business fronts. For an online business, it is a more cost-effective and reliable way to gather data on its audience. With this crucial data, behavioral AI allows online businesses to deliver more personalized experiences. The financial and brand benefits from personalized marketing only continue to grow with the relationship between AI and online businesses.
Behavioral AI in Action
As we mentioned earlier, behavioral AI is in motion in the background from the moment you log into your online bank account or favorite e-commerce store. Behavioral AI first makes its presence felt during the registration process. Most online businesses have a membership program, so to better market on a personal level, you have to register.
The registration form, including your personal details and photo identification, is the foundation for online security and personal marketing. When it comes to online security, once AI deduces it’s safe to verify your membership, the next step is to monitor your official behavior while visiting and interacting with the website. Again, this data is stored for further analysis, with the priority going towards cybersecurity.
With professional hackers causing so much damage and ruining company brand reputations, behavioral AI is needed and depended on more than ever to maintain a safe browsing environment and credibility. That’s why, in real-time, behavioral AI can flag suspicious behavior or something that doesn’t fit the member’s pre-recorded pattern.
AI will isolate that member until further review or verification is conducted before allowing that member back into the network. Behavioral AI, similarly, knows the financial habits of all members registered at an online business. Because of this, more online businesses rely on behavioral AI as their number one weapon against fraud.
In real-time, behavioral AI can freeze a payment that it suspects is fraudulent. One clear sign is a member trying to use another member’s financial information in the checkout process. The online business, through behavioral AI, will lock that suspected member out of the account and require further verification.
Behavioral AI for Personal Marketing
Behavioral AI is the main way online businesses build personal relationships with their members. Studies show that if a customer or consumer feels a connection with the business, they, of course, spend more. One such way is through personal advertising.
Instead of hoping to hit a home run with general advertising, behavioral AI creates dynamic ads based on stored member preferences. For example, instead of doing a general ad for discounts on shirts, behavioral AI, knowing that a member might like sweaters and buy them frequently, can create a dynamic and exclusive ad to buy sweaters.
Or in the case of online casinos, instead of relying on an all-member game bonus, behavioral AI creates personalized online casino promotions to encourage their members to make deposits and refer a friend. The online food industry is famous for personalized advertising and discounts on dishes and meals that a member frequently buys.
Looking Ahead
As technology continues to improve, so does the caliber and need for behavioral AI. As shoppers and consumers shift to online, online businesses invest heavily in behavioral AI and more AI tools. With successful behavioral AI, online businesses can realize future profits through predictive AI. Predictive AI takes behavioral AI to the next level because there is a proven track record of what an online consumer prefers and buys.
