AI-powered e-commerce platforms scale SMB operations by providing sophisticated pricing analysis and inventory management. Encryption and blockchain applications significantly mitigate concerns about data security and privacy by enhancing data protection and ensuring the integrity and confidentiality of information.
A 2024 survey of 530 small and medium-sized businesses (SMBs) reveals that AI adoption remains modest, with only 39% leveraging this technology. Content creation seems to be the main use case, with 58% of these businesses leveraging AI to support content marketing and 49% to write social media prompts.
Despite reported satisfaction with AI’s time and cost-saving benefits, the predominant use of ChatGPT or Google Gemini mentioned in the survey suggests that these SMBs have been barely scratching the surface of AI’s full potential. Indeed, AI offers far more advanced capabilities, namely pricing analysis and inventory management. Businesses willing to embrace these tools stand to gain an immense first-mover advantage.
Balancing AI with data security
With great power comes great responsibility, as the saying goes. An e-commerce platform harnesses the wondrous capabilities of AI must also guarantee the protection of its users and customers’ data. This is especially relevant given that AI routinely accesses large amounts of data, increasing the risk of data breaches. Without proper security measures, sensitive information can be exposed through cyber-attacks.
When customers are browsing an online marketplace, data privacy and security are top of mind. According to a PwC survey, 71% of consumers will not purchase from a business they do not trust. Along the same lines, 81% would cease doing business with an online company following a data breach, and 97% have expressed concern that businesses might misuse their data.
Fortunately, e-commerce platforms provide various cybersecurity measures, addressing security compromises and reassuring both customers and the SMBs that host their products on these platforms.
Encryption is a highly effective method for securing data transmission and storage. By transforming plaintext data into scrambled ciphertext, the process renders the data indecipherable to anyone without the corresponding decryption key. Therefore, even if hackers somehow manage to intercept data exchanges or gain access to databases, they will be unable to make sense of the data. Sensitive information such as names, birthdays, phone numbers, and credit card information will appear as meaningless jumble. Research from Ponemon Institute shows that encryption technologies can save businesses an average of $1.4 million per cyber-attack.
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