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How will AI and machine learning transform digital services in 2017

Wednesday April 26, 2017,

5 min Read

Hey! Ever noticed ads on the websites relevant to your recent or previous searches? It is because of Artificial Intelligence and Machine Learning.

Yup! It’s true! Many online users are not aware of the shopping therapy they are getting from leading retail brands and marketers.

An article by Gill Press on Forbes reveals that,

• 38% of enterprises are already using AI, which will rise up to 62% by 2018.

• Investment over AI in 2017 may see an increase of 300% as compared to 2016.

• AI market will grow from $8 billion in 2016 to more than $47 billion in 2020.

No doubt it’s an era of digital services. Knowingly or unknowing, it is impacting numerous lives.

What are digital services?

Simply put, any service that is rendered digitally via the internet or an electronic network with minimal human intervention is known as digital service. Essentially, in all digital services, the supply is automated. From paying utility bills to booking travel tickets and subscribing to various online services are some good examples of digital services.

Today, the entire market on the digital landscape leverage AI and machine learning to provide digital services.

The use of AI has increased online experience to manifolds. It amazes users when they see something relevant appearing in the mid of the page or social media news feed.

Let us understand the concept of AI and machine learning first.

AI & Machine Learning

AI is a technique that makes machines act like humans including cognitive functions like “learning” and “problem solving,” which is also known as machine learning.

But, why marketers need to use AI and machine learning in marketing?

The quick and short answer is: to make lives easier and improve user experience of both users and oneself.

Applications: Different Ways AI and Machine Learning Help

Learning Consumer Behaviors

AI will be the key tools for marketers when it comes to understanding consumer behavior and segment them accordingly. The use of AI and machine learning will help companies make offers as per customer sentiments and behaviors, which will increase the rate of conversion. Further, it will help brand improve customer services.

Improving Search

As online experience starts with searches. The use of AI in searches will make finding information faster, easier, more efficient and convenient for digital customers. Google is almost every make changes to its algorithm to make searches more relevant for online users.

Designing AI Applications

Organizations will use AI and machine learning to design and create other applications to provide better customer service and get competitive advantage in their niche.

Let us see what is happening behind the closed doors to explore how AI and machine learning will impact digital services.

Brands Using AI and Machine Learning

Let’s see how corporate giants are using AI and machine leering to get the upper hand.


The leading American multinational technology company has been working on AI since 2005 to develop Watson supercomputer.

With the help of Watson, Under Armor, an American footwear company, created a health-tracking app called “Record.” This app has the ability to provide personalized recommendations for nutrition and training advice.


Responding nearly to 3.5 billion search queries every day, the search engine giant already accepted in the late October 2015 that it was using RankBrain, an AI system, to interpret very large fraction of search queries.


Facebook AI Research aka (FAIR) by social media king is to advance the field of machine intelligence. It is already using AI for textual analysis with the help of DeepText to extract meaning from words to analyze them contextually. Apart from it, Facebook also uses targeted advertising to offer personalized ads, and facial recognition to recognize people in photos.


The notable social media platform is using AI and deep learning based chatboats to identify the likes, dislikes, and needs of online users to provide positive customer experience and service.

AI’s Impact on Major Industries


AI will become crucial in the financial services industries. Very soon AI will replace financial advisors. How? AI will look at social media posts and emails to learn sentiments of customers and determine companies best align with their values to make recommendations.


It already exists and is expected to advance in coming times with more powerful AI integration. AI bots will helps people remind to eat well, take medications on time, and get diagnostic test to stay and live a healthier life.

Online Retail

AI boats will learn consumer behavior to make personalized recommendations like a personal shopping assistant. It will keep buyers alert about prices drop, offers, availability of items in stock, and more.


As it has already begun, insurance companies in the coming times would use monitoring device to track consumer behavior to let them know whether to be insured at lower rate. It will give companies information about the heart rate, blood pressure, activity levels to be sure about the fitness level of the customers.


As Uber already launched self-driving cars, AI will change the landscape of transportation industry by having an impact on public transportation and delivery drivers. Use of AI will decrease the risk of accidents, alleviate traffic congestion, and lower energy costs.

Future of AI

It seems promising. The use of AI helps marketers automate their work and reduce manual efforts. In 2017, AI will be the key to creating customer engagement and building brands to trigger sales and increase revenue.

In 2016, IBM’s CEO Ginni Rometty at the US Tech AI conference said, “I would say in five years, there's no doubt in my mind that cognitive AI will impact every decision made" from healthcare to education to financial services.

So the companies that will leverage AI and machine learning to offer digital services will rule the digital landscape.

However, everything brings some pros and cons with itself. Will extensive use of AI in digital services have any negative impact? Do share your outlooks in the comment section below!