The B2B sector often serves as a benchmark for the maturity and adoption of cutting-edge technologies, a role it currently fulfills for Artificial Intelligence (AI). As B2B companies predominantly focus on "Generative AI”, it is imperative for decision-makers to look beyond the buzz and identify AI strategies that genuinely deliver competitive advantages, enhance efficiency, and tackle the ongoing challenge of the skilled labor shortage.
Interestingly, perceptions within B2B organizations about the effectiveness of their AI implementations can vary dramatically. A notable disparity exists between leadership and departmental views, as highlighted by a recent study from the globally renowned consultancy, Horváth & Partners. [1]
This raises questions about the real and potential value AI brings to B2B companies, especially in the burgeoning field of B2B ecommerce. Which specific applications and technologies hold the most promise? These are critical considerations for B2B leaders planning their AI strategies, and this article aims to explore these facets in depth.
The AI hype cycle: Why ChatGPT alone isn't an AI business strategy
"Artificial Intelligence" encompasses a range of technologies designed to perform tasks that typically require human intelligence. These include learning, problem-solving, perception, understanding language, and making decisions — crucial skills that can make or break success in any (B2B) organization. AI's edge over human capabilities lies in its ability to execute these tasks rapidly, with fewer resources and greater accuracy.
From a business standpoint, it makes practical sense for almost every B2B company to implement AI in some form. According to a study by ECC Cologne and Creditreform, nearly 74% of B2B merchants confirmed they invested in AI in 2023 and plan to increase their investment in 2024. [2] This has led to the creation of AI playgrounds within companies of all sizes, where specific, promising tools like ChatGPT are being explored.
However, deploying ChatGPT does not automatically elevate a B2B company to AI mastery. Instead, B2B decision-makers need to delve into the diverse applications of AI and understand their various levels of technological maturity. Essentially, success in AI requires a strategic, well-considered, and sustainable corporate AI strategy.
A valuable reference for this is the “Gartner® Hype Cycle™ for Artificial Intelligence,” which "identifies innovations and techniques that offer significant and even transformational benefits while also addressing the limitations and risks if fallible systems." [3]
While "Generative AI" currently sits at the peak of inflated expectations, other AI technologies such as "Computer Vision," "Data Labeling and Annotation," and "Intelligent Applications" are nearing the plateau of productivity.
For the B2B sector, it is especially crucial to keep an eye on emerging themes like "Composite AI," "Decision Intelligence," and "Responsible AI."
AI strategy planning: From low-hanging fruits to AI revolution
At Shopware, we believe that B2B decision-makers should not be misled by the Gartner AI Hype Cycle; many of the trends it highlights are expected to become productively viable within the next 2 to 5 years, profoundly impacting the value creation in B2B companies. It's time to carefully consider a targeted AI strategy to prevent being overwhelmed by the surge of new AI applications.
Particularly, B2B ecommerce – characterized by its digital platform nature, complex workflows, and data analytics capabilities – offers abundant opportunities to explore the capabilities and benefits of AI and to develop forward-looking, AI-driven strategies. However, it's prudent to start with the low-hanging fruits: those AI applications that are quick and simple to implement and are readily available today:
Personalized customer experience: Using AI, businesses can analyze customer data to craft customized shopping experiences, such as personalized shopping pages that cater directly to individual customer preferences.
Dynamic pricing and offers: Leveraging live competitor data, AI enables dynamic adjustments of prices and promotions in the online shop, ensuring competitive positioning.
Process automation: Transitioning from traditional rule-based systems, smart algorithms now lead in areas such as returns management. By analyzing return patterns, B2B companies can automate and streamline the returns process, enhancing efficiency and speed.
Predictive analytics: AI-driven analytics improve procurement by using historical data to forecast future needs, optimizing inventory levels. Additionally, AI-generated insights from sales and customer data can inform future product offerings, aligning more closely with market demands.
Scalable customer interactions: Intelligent chatbots can automate and scale customer service and support, improving response times and efficiency.
Fraud protection: AI algorithms detect signs of fraudulent activity within the online store and can automatically initiate appropriate countermeasures to protect the business.
Generative AI: For shop operators, Generative AI can create captivating visuals for product presentations. For customers, it facilitates innovative features like voice search (speech-to-text) and image-based search (searching for similar shop products based on an image template) in the online shop, enhancing the shopping experience.
Modern ecommerce platforms like Shopware come equipped with many of the AI features discussed earlier, right out-of-the-box. Additionally, if the shop system provider boasts a robust ecosystem of integration partners and apps, it's easy to install extensions that address further AI use cases with just a few clicks. As a result, advanced ecommerce systems make the barriers to implementing an initial AI push in B2B companies relatively low.
However, crafting a comprehensive AI strategy also requires looking beyond the immediate future to the long term. Therefore, at the beginning of the strategic planning process, B2B decision-makers should consider the following questions:
Which technologies will survive the initial hype and fundamentally change the industry?
Which AI applications are truly relevant to my core business?
How much should I invest now to keep up with the important AI trends?
Is my existing ecommerce infrastructure optimized for efficient implementation of AI technologies?
What key performance indicators (KPIs) can effectively measure the success of my AI initiatives?
Do the users in my company have the skills to effectively utilize AI tools and leverage them for profit?
Indicators of which AI trends will prevail can be found from research institutes like Gartner, Forrester, or PwC, as well as the future visions of ecommerce platforms. For example, Shopware transparently outlines upcoming AI features in a roadmap and shares its AI vision during events like the annual Shopware Community Day.
AI is a key driver for success in B2B commerce
The B2B ecommerce sector is expanding more rapidly than any other. "By 2025, Gartner expects 80% of B2B sales interactions between suppliers and buyers to occur in digital channels." [4] To maximize benefits from the digital evolution of the B2B sector, there's a critical need for process optimization, efficiency improvements, and data-driven analysis.
AI stands out as one of the most essential drivers in this transformation. Today, tools like Shopware's AI Copilot are already streamlining numerous labor-intensive, manual processes. These advancements include AI-generated content for immersive shopping experiences, AI-based customer segmentation for targeted marketing campaigns, AI-generated summaries of product reviews, and Generative AI features such as image-based search or text-to-image visualizations for product details.
Want to delve deeper into Artificial Intelligence and other B2B commerce trends? Our B2B Trend Report 2024 provides comprehensive insights into these developments.
[1] https://www.horvath-partners.com/de/cxo-news-abonnieren/ausgabe-1/2024/horvath-studie-mit-vorsprung-durch-die-ki-revolution-was-cxos-jetzt-wissen-muessen [2] https://www.creditreform.de/aktuelles-wissen/pressemeldungen-fachbeitraege/news-details/show/b2best-barometer-investitionen-in-ki-steigen [3] Gartner Article, What's New in Arfificial Intelligence from the 2023 Gartner Hype Cycle, Lori Perri, August 17, 2023. GARTNER is a registered trademark and service of Gartner, Inc. and/or its affiliates in the U.S. and internationally and is used herein with permission. All rights reserved. [4] Gartner Report, The Future of Sales: Digital-First Sales Transformation Strategies, 02 February 2024, https://www.gartner.com/en/sales/trends/future-of-sales .
