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Artificial Intelligence
in eCommerce
1. Why everyone is talking about Artificial Intelligence?
2. What is Artificial Intelligence?
3. What are some examples of Artificial Intelligence in eCommerce?
1.Why everyone is talking about Artificial Intelligence?
??
1. Why is everyone talking about Artificial Intelligence?
Data Processing is driving a new Industrial Revolution
There are four generally recognized “industrial revolutions” in human history….
1760~1840
Third Industrial
Revolution
Fourth Industrial
Revolution
First Industrial
Revolution
Second Industrial
Revolution
Steam Engine
Railroads
Manufacturing
1870~1914 1961~2000 2011~….
Electrification
Assembly Line
Mass Production
Semiconductors
Computing
The Internet
Cloud Computing
Internet of Things
Artificial Intelligence
Blockchain
etc…
the first machine age the second machine age
These revolutions have changed civilization dramatically
Historically the primary concerns for human civilization
warfamine plague
France, 1692-1694
15% of population
dies of starvation
China, 1958-1962
36,000,000 people
die of starvation
Worldwide, 2010
1,000,000 people
die of famine and
malnutrition
3,000,000 people
die of obesity
Mexico, 1520-1580
Disease decimates
population from
22 to 2 million
Worldwide, 1918
50~100M people
die of “Spanish Flu”
Worldwide, 2015
70% of deaths
worldwide caused
by NCDs
Diseases related to
diet and old age
Agricultural Society
Est. 15% of deaths
caused by violence
WW2, 1939-1945
50~80M people die
during WW2
Worldwide, 2015
620,000 people die
from human violence
“Sugar is more
dangerous than
gunpowder.”
5%
1. Why is everyone talking about Artificial Intelligence?
Famine and Disease are becoming things of the past
Death by Noncommunicable DiseaseLife Expectancy Worldwide
In much of the world, diet or old age kills more people than starvation or sickness…
1. Why is everyone talking about Artificial Intelligence?
Fewer people are being killed due to wars
War between “Great Powers” Battle Deaths
With any luck, great powers will consistently avoid war in the future…
1. Why is everyone talking about Artificial Intelligence?
The Steam Engine initiated drastic improvements
Invention
of the
Steam Engine
1. Why is everyone talking about Artificial Intelligence?
Computing technologies are initiating a new paradigm shift
Many Dimension of Moore’s Law
1. Why is everyone talking about Artificial Intelligence?
This is what that looks like….
ASCI Red PS3
1.8 teraflops in 1997 1.8 teraflops in 2006
$55,000,000 $500
1. Why is everyone talking about Artificial Intelligence?
What a difference ten years can make….
1. Why is everyone talking about Artificial Intelligence?
Or put it another way…
0
15
30
45
60
75
90
ASCI Red IBM Roadrunner NRCPC Sunway
90
10.001
Petaflops
1997 2008 2016
Estimated Petaflops = 1000
Human Brain
1. Why is everyone talking about Artificial Intelligence?
2. What is Artificial Intelligence?
Enable machines to perform similar cognitive tasks as people
Artificial Intelligence covers several areas…
2. What is Artificial Intelligence?
•Curated Knowledge
•Machine Learning
•Data Mining
John McCarthy Marvin Minsky Andrew Ng Yann LeCun Geoff Hinton
… of data science relevant to eCommerce.
Most people are interested in Machine Learning…
2. What is Artificial Intelligence?
Supervised Learning
Unsupervised Learning
Reinforcement Learning
Artificial Neural Networks a.k.a.
Deep Learning
Learning Technique Description
Machine should accomplish a discrete task based
on human observations (e.g historical data).
Machine should rely on clustering data and
modifying its algorithms without human feedback
Machine should rely on reinforcement algorithms
to achieve a high grade on a task
Process data through layers of analysis using
“shallow” algorithms
Machines can learn to make predictions or classifications
2. What is Artificial Intelligence?
Supervised Learning
Type of Learning Description
Machine should accomplish a discrete task based
on human observations (e.g historical data).
Example…
Linear Regression Logistic Regression Support Vector Machine
Predict Cost (or
Revenue) of Ad
Units
Identify fraud,
spam, other
binary classes
Minimize
impact of data
anomalies
Machines can learn to identify clusters within data
2. What is Artificial Intelligence?
Unsupervised Learning
Type of Learning Description
Example…
Common clustering algorithms are: k-Means, k-Nearest Neighbor
Machine should rely on clustering data and
modifying its algorithms without human feedback
Machines can learn to understand an environment
2. What is Artificial Intelligence?
Reinforcement Learning
Type of Learning Description
Machine should rely on reinforcement algorithms
to achieve a high grade on a task
•“Semi-Supervised” and value of the output is unknown
•Understand complex situations where outcomes depend on many variables
•No direct oversight:
✓ machine is programmed with reinforcement algorithms
✓ each performance is graded, machine repeats until it achieves high grade
Example…
Machines can learn to interpret and react like we do
2. What is Artificial Intelligence?
Artificial Neural Networks a.k.a.
Deep Learning
Type of Learning Description
Process data through layers of analysis using
“shallow” algorithms
Artificial Neural Network (ANN)
•Each neuron contains a “shallow” algorithm
•Each neuron has a weight which is updated as
data is input to the network multiple iterations
•As information ascends through the network is
becomes less abstract and more specific
2. What is Artificial Intelligence?
Types of Neural Networks
3. What are some examples of A.I. in eCommerce?
3. What are some examples of A.I. in eCommerce?
Product Search
Pricing
Personalization
Recommendations
Customer Service
Automated Orders
Shopping Agents Operations
Inventory 

Management
Zero UI
Marketing
PaymentFulfillment
Merchandizing
Storage
Sales
3. What are some examples of A.I. in eCommerce?
3. What are some examples of A.I. in eCommerce?
3. What are some examples of A.I. in eCommerce?
3. What are some examples of A.I. in eCommerce?
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Ai in e commerce (public)

  • 1. Artificial Intelligence in eCommerce 1. Why everyone is talking about Artificial Intelligence? 2. What is Artificial Intelligence? 3. What are some examples of Artificial Intelligence in eCommerce?
  • 2. 1.Why everyone is talking about Artificial Intelligence?
  • 3. ?? 1. Why is everyone talking about Artificial Intelligence? Data Processing is driving a new Industrial Revolution There are four generally recognized “industrial revolutions” in human history…. 1760~1840 Third Industrial Revolution Fourth Industrial Revolution First Industrial Revolution Second Industrial Revolution Steam Engine Railroads Manufacturing 1870~1914 1961~2000 2011~…. Electrification Assembly Line Mass Production Semiconductors Computing The Internet Cloud Computing Internet of Things Artificial Intelligence Blockchain etc… the first machine age the second machine age
  • 4. These revolutions have changed civilization dramatically Historically the primary concerns for human civilization warfamine plague France, 1692-1694 15% of population dies of starvation China, 1958-1962 36,000,000 people die of starvation Worldwide, 2010 1,000,000 people die of famine and malnutrition 3,000,000 people die of obesity Mexico, 1520-1580 Disease decimates population from 22 to 2 million Worldwide, 1918 50~100M people die of “Spanish Flu” Worldwide, 2015 70% of deaths worldwide caused by NCDs Diseases related to diet and old age Agricultural Society Est. 15% of deaths caused by violence WW2, 1939-1945 50~80M people die during WW2 Worldwide, 2015 620,000 people die from human violence “Sugar is more dangerous than gunpowder.” 5% 1. Why is everyone talking about Artificial Intelligence?
  • 5. Famine and Disease are becoming things of the past Death by Noncommunicable DiseaseLife Expectancy Worldwide In much of the world, diet or old age kills more people than starvation or sickness… 1. Why is everyone talking about Artificial Intelligence?
  • 6. Fewer people are being killed due to wars War between “Great Powers” Battle Deaths With any luck, great powers will consistently avoid war in the future… 1. Why is everyone talking about Artificial Intelligence?
  • 7. The Steam Engine initiated drastic improvements Invention of the Steam Engine 1. Why is everyone talking about Artificial Intelligence?
  • 8. Computing technologies are initiating a new paradigm shift Many Dimension of Moore’s Law 1. Why is everyone talking about Artificial Intelligence?
  • 9. This is what that looks like…. ASCI Red PS3 1.8 teraflops in 1997 1.8 teraflops in 2006 $55,000,000 $500 1. Why is everyone talking about Artificial Intelligence?
  • 10. What a difference ten years can make…. 1. Why is everyone talking about Artificial Intelligence?
  • 11. Or put it another way… 0 15 30 45 60 75 90 ASCI Red IBM Roadrunner NRCPC Sunway 90 10.001 Petaflops 1997 2008 2016 Estimated Petaflops = 1000 Human Brain 1. Why is everyone talking about Artificial Intelligence?
  • 12. 2. What is Artificial Intelligence?
  • 13. Enable machines to perform similar cognitive tasks as people Artificial Intelligence covers several areas… 2. What is Artificial Intelligence? •Curated Knowledge •Machine Learning •Data Mining John McCarthy Marvin Minsky Andrew Ng Yann LeCun Geoff Hinton … of data science relevant to eCommerce.
  • 14. Most people are interested in Machine Learning… 2. What is Artificial Intelligence? Supervised Learning Unsupervised Learning Reinforcement Learning Artificial Neural Networks a.k.a. Deep Learning Learning Technique Description Machine should accomplish a discrete task based on human observations (e.g historical data). Machine should rely on clustering data and modifying its algorithms without human feedback Machine should rely on reinforcement algorithms to achieve a high grade on a task Process data through layers of analysis using “shallow” algorithms
  • 15. Machines can learn to make predictions or classifications 2. What is Artificial Intelligence? Supervised Learning Type of Learning Description Machine should accomplish a discrete task based on human observations (e.g historical data). Example… Linear Regression Logistic Regression Support Vector Machine Predict Cost (or Revenue) of Ad Units Identify fraud, spam, other binary classes Minimize impact of data anomalies
  • 16. Machines can learn to identify clusters within data 2. What is Artificial Intelligence? Unsupervised Learning Type of Learning Description Example… Common clustering algorithms are: k-Means, k-Nearest Neighbor Machine should rely on clustering data and modifying its algorithms without human feedback
  • 17. Machines can learn to understand an environment 2. What is Artificial Intelligence? Reinforcement Learning Type of Learning Description Machine should rely on reinforcement algorithms to achieve a high grade on a task •“Semi-Supervised” and value of the output is unknown •Understand complex situations where outcomes depend on many variables •No direct oversight: ✓ machine is programmed with reinforcement algorithms ✓ each performance is graded, machine repeats until it achieves high grade Example…
  • 18. Machines can learn to interpret and react like we do 2. What is Artificial Intelligence? Artificial Neural Networks a.k.a. Deep Learning Type of Learning Description Process data through layers of analysis using “shallow” algorithms Artificial Neural Network (ANN) •Each neuron contains a “shallow” algorithm •Each neuron has a weight which is updated as data is input to the network multiple iterations •As information ascends through the network is becomes less abstract and more specific
  • 19. 2. What is Artificial Intelligence? Types of Neural Networks
  • 20. 3. What are some examples of A.I. in eCommerce?
  • 21. 3. What are some examples of A.I. in eCommerce? Product Search Pricing Personalization Recommendations Customer Service Automated Orders Shopping Agents Operations Inventory Management Zero UI Marketing PaymentFulfillment Merchandizing Storage Sales
  • 22. 3. What are some examples of A.I. in eCommerce?
  • 23. 3. What are some examples of A.I. in eCommerce?
  • 24. 3. What are some examples of A.I. in eCommerce?
  • 25. 3. What are some examples of A.I. in eCommerce?