At a recent AI conference, the speaker threw ChatGPT into the spotlight by giving it a complex task: stack a cutting board, three eggs, a butter knife, and a plate in a way that wouldn’t turn the eggs into a scramble.
Surprisingly, the AI delivered not one, but two solutions, complete with mathematical explanations for each, and added a cheeky “assuming the eggs haven’t expired…” just to keep it real.
The AI’s recommendations were successful meaning AI was actually doing complex calculations like a real scientist. Any skeptic in the room who thought ChatGPT was simply a bot predicting the next token to assemble words had to eat humble pie.
The scary part about all this is that AI is getting incredibly smart. In a 2017 interview, Ray Kurzweil predicted human-level intelligence by 2029 and singularity by 2045. However, now scientists believe the day will come much sooner.
It will soon infiltrate the world of B2B in a big way.
While the perils of AI remain uncertain – whether it triggers a Mission Impossible: Dead Reckoning scenario where the AI plots to destroy humans to preserve itself or it evolves with a conscience to combat climate change – what’s relevant today, within my domain and as a B2B commerce enthusiast, is whether AI simplifies the intricate world of wholesale trade or creates more complexity.
B2B E-commerce is on a roll. The user experience has sharpened, drawing closer to the immersive feel of retail interactions. However, the tech still has to account for a significant amount of business rules.
True success would come if AI could emulate or even surpass the productivity of a high-performing sales rep.
What can AI do that a B2B sales rep can’t?
Let’s call our sales rep Laura. Laura sells home goods wholesale to retailers. For this article, I actually reached out to a few sales reps and asked how they measure against AI.
Let’s start with access to information. Our sales rep Laura is constrained by a finite amount of information that she’s gathered over the course of her 15 year career. Part of that memory is crowded out by Netflix sagas, grocery lists and weekend chores. On the other hand, AI has no such limits. It can effortlessly absorb copious B2B product files, swiftly parse 10,000 rows of inventory within fractions of a second to provide tailored suggestions.
Well, you can argue that information isn’t enough; it’s what you do with that information that matters.
Transitioning to the next advantage, Laura enjoys exploring and discovering new products for her clientele. Up until now, she held the upper hand. If a customer expressed interest in cool, understated sneakers for their shoe store, Laura could discern the need for “black, minimalist” options.
Unlike Laura, conventional search engines demand precise keyword input like “black,” and “minimalist,” rather than the more conversational “I’m seeking something cool and understated.”
In contrast, AI-driven search operates differently. It’s intuitive and attuned to context, enabling customers to use natural language. AI thinks and communicates just like a sales rep would. Uh-oh. Sorry Laura.
However, Laura’s expertise truly shines in securing deals. Suppose a customer has decided on a particular sneaker brand and intends to order 500 units across 10 different styles. Laura possesses the flexibility to offer bulk discounts.
Yet, AI is well-versed in dynamic pricing, drawing from real-time supplier inventory data, allowing it to address this instantly.
“The AI can read reviews, observe buying patterns, look at inventory levels and make changes on the fly. It can even put together bundles more efficiently than any man made algorithm,” says Patrick Xie founder of Silicon Valley commerce.
But here’s a pivotal aspect where Laura faces limitations. AI is unparalleled in detecting fraud. Armed with speed, pattern recognition, and an ability to spot anomalies, AI can swiftly identify dubious customers. In contrast, Laura’s abilities are constrained to her best conjectures.
With these factors stacked against her, should Laura concede defeat?
The AI has drawbacks.
B2B commerce thrives on personal relationships. Excessive reliance on machines risks turning transactions mundane.
“It’s the dinners that you have in the evening. It’s the breakfast in the hotel where you run into another person that you haven’t seen in 10 years. It’s stuff like that that you cannot replicate.” says Paul Boots, who is building a new state-of-the-art Market Center in Dubai. While AI would certainly play a role, the key players in this industry are still human beings.
Robot responses, however natural, would likely struggle with intricate issues. And how will AI replicate Laura’s personal warmth and infectious laughter?
Then there’s the matter of privacy. For instance, Zoom’s recent announcement about using webinar recordings to train their AI model raises concerns about proprietary information falling into third-party hands. On the contrary, Laura can be trusted; her reputation is at stake. AI, devoid of reputation, remains indifferent to privacy.
Bias is another concern. Let’s say an AI algorithm is brought in to help automate vendor selection at a trade show. The algorithm learns from historical data, analyzing past vendor performances to make predictions about future partnerships. But let’s say the buyer wants something new and unique. The AI will draw from historical data and leave out new contenders.
The customer loses.
Laura doesn’t have those biases. She may have her favorite vendors, but she will do what’s right for the customers.
And that’s precisely the reason customers will resist AI despite all its advantages. It will require a certain amount of social engineering to make it work.
Is there a Middle Ground?
Yes, AI can make E-commerce a wonderland of personalized shopping, swift searches, and fair prices. But we’ve got to keep our eyes open to the privacy pitfalls, bias blunders, and potential resistance.
As the B2B E-commerce world hurtles forward, AI can be the driving force, but with a dose of humanity. It’s a journey that’s thrilling, unpredictable, and—dare I say—exhilarating. Just remember, the future’s not set in silicon. It’s in our hands, with AI as our trusty sidekick on this fantastic voyage. Note, AI wrote this last paragraph.
Just throwing it in there to check if you noticed.
Vinit Patil is CEO and Co-founder of MeetRibbon, a platform for trade shows that ties e-commerce, registration and lead retrieval into one happy ecosystem.