7 Ways Artificial Intelligence is Reshaping the Mobile Economy

Artificial Intelligence is continuing to be a buzzword in the market. Everyone is discussing over virtual assistants, chatbots and self-driving cars, and are putting their ideas and thoughts around it. It has become one of the highest searched topics on the Internet, with the involvement of various reputed entities across the globe investing their time, efforts and money into the technology.

According to the latest report, Alphabet put around $30 billion for unleashing AI technology, while Baidu has invested nearly $20 billion in the technology last year. Not just this, the China government is also focusing on AI development with the perspective of controlling the future cornerstone innovation.

With all these things into consideration, it can be easily said that the business world is progressively turning towards Artificial Intelligence, and we will see various significant changes in the industrial world in 2018.

While AI is bringing the next revolution in various business verticals, including sports, healthcare, finance, modern education and travel, the most significant change is in the mobile economy. AI is the major reason for millennial onboarding on FinTech platforms. The technology is disrupting the mobile app industry, paving a new way to meet the users’ expectation and reap the benefits of app development. This is probably why businesses are looking for ways to adopt Artificial Intelligence successfully. 

Curious to know how will AI transform the mobile market?

Here are the 7 ways AI is Reforming the Mobile App Industry in Terms of User Engagement and Developer App Revenue

1. Better Conversational Experience

Artificial Intelligence is filling the gap between the consumers and brands. The technology, in the form of Chatbots, is offering exceptional conversational experience to the customers. It is not only managing multiple clients at a time but is also proving to be the right solution for satisfying their needs with personalized products/services. According to a survey, 95% of smartphone users feel that customer service has been improved with the inception of chatbots. Another survey revealed that 15% of users have communicated with a bot in the past 12 months, while 35% of customers wish to see more companies investing in chatbot development. In addition to these, it has been expected that 80% of businesses will employ bots by 2020.

This clearly defines that AI/Chatbots are here to stay for a long, and disrupt the market in a positive way.

2. App Personalization

By integrating AI into their mobile apps, developers and brands are able to facilitate personalized experience to their users.

Apps will trace the user’s location and provide location-based results automatically; the user need not enter the location every time. Secondly, the technology will let the brands gather in-detailed information about customers via different means, such as online traffic, mobile devices, PoS machines, etc. The collected data along with the recorded user behavior will be further used to provide personalized results. This will improve the user retention rates. Besides, intelligent applications will let the user enjoy exceptional services without making many efforts. For example, Starbucks AI-powered app, My Starbucks Barista allows customers to place an order by just speaking about the product they want.

On a larger scale, AI will revamp the search algorithm, shifting focus to richer contextual and personalized app experience.

3. Seamless Search Experience

AI is streamlining the user experience by empowering them to make their searches not only via text but also through images and voice. In fact, the technology is also enabling them to make searches in their natural language. This has taken the mobile app experience to the next level, by making it necessary for the app developers to integrate image recognition, voice recognition, and app localization features into their mobile apps.

4. Onboard Experience and Gamification

Nearly 25% of app users never return to the app after the first try. To minimize these numbers, app developers are turning towards AI. The technological effort understands human psychology and enables the UI/UX designers to design accordingly. It prevents users from memorizing all the details by securely storing with it, which indicates AI is enhancing the app usability. Besides, it let the users have access to various in-app gestures, which turns their app experience to be more enticing.

5. Improved App Security

AI technology will cater the biggest concern of mobile app developers, i.e, security. With parallel technologies like Predictive Analysis and Machine learning, the technology will help in making predictions related to app security and vulnerability levels. The technology will keep an eye on the user behavior pattern and alert is anything suspicious is found. Not only this, the technology will also recommend or implement changes to improve the security of the app. It will also introduce new ways of logging into/out of the mobile application.

In addition to evaluating and implementing improvements in the security mechanism, the Artificial Intelligence technology will also let the app developers find potential security “holes” and “backdoors”, reducing the risk of intruder attack by employing these security leakage points.

6. Enhanced App Marketing

Not only the app development and engagement, the Artificial Intelligence will also refine the app marketing scenario. The AI-enabled machines and apps study the market trends and user behavioral pattern to provide real-time, detailed demographics. By this, these machines and apps not only cut down the efforts of marketers in gathering data but also reduces the chances of an error. By serving with real-time data, the technology enables the marketers to make marketing strategies with a futuristic approach. This improves the conversion rates and sales.

According to a Gartner Research, 30% of companies will employ AI for sales by 2020, which defines investing in AI to be the need of the hour.

7. AI and IoT

AI is also playing a pivotal role in the growth of IoT. The technology enables the connected devices to collect real-time data and take a decision on their own. In other words, AI-powered mobile apps empower connected devices to learn from the information exchange pattern and act accordingly.

According to statistics, there will be more than 50 billion connected devices by the year 2020, which means a higher demand for AI apps to control these devices.

AI services are slowly and gradually revamping the mobile economy with its potential to collect real-time data, understand human emotions and provide a personalized experience. And now, with the announcement of AI chips in the 5G smartphones, the future of the mobile economy is going to be more intelligent and interesting.

THE AUTHOR

Sudeep Srivastava

Co-Founder and Director