Impact of Artificial Intelligence on E-Commerce Development

Ahmad Yousef Areiqat1, Allam Hamadan2 and Ahmad Fathi Alheet3

Abstract

With the fast advancement of science, innovation and the economic society, the use
of artificial intelligence (AI) has gotten increasingly normal, as its improvement
insightfully affects our work and way of life. In the field of web-based business, AI
innovation has likewise been very much applied and accomplished great outcomes.
Artificial intelligence has become a significant main impetus for the improvement of
online business. We will examine the significant effect and incredible centrality of
artificial intelligence on the web-based business advancement.

Artificial intelligence (AI) in E-Commerce industry is being used by online retailers for
giving visit bot administrations, examining client remarks, and for offering customized
types of assistance to online customers. Truth be told, a 2019 Unbiased investigation found
that 1 in each 5 customers are eager to buy products or administrations from a visit bot,
while 40% of the online customers are searching for incredible offers and shopping
bargains from talk bots. While the worldwide E-trade deals are projected to contact $4.8
billion continuously 2021, Gartner predicts that around 80% of all client communications
will be overseen by AI advances (with no human specialist) constantly 2020. Anyway,
how has Artificial Intelligence in E-trade changing or changing the shopping experience in
2019? Through this part, we will feature a portion of the significant uses of Artificial
Intelligence in E-commerce alongside a portion of the genuine business models.

Keywords: Artificial intelligence, E-Commerce, online retailers, modern communication

technology

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 Content

1 Introduction . . . . . . . . . . …………………………..…………………..2
2 E-commerce Business Model. …………………………………………2
3 Recommendation Engine ………………………………………………3
4 Advantages of Artificial intelligence in e-Commerce ……….…….…4
5 The technological advancements …………………………………..….6
6 Challenges and Opportunities of ……………………………………....9
7 Conclusion ……………………..………………………………….…..11
8 FinTech in Taiwan…………………………………………………….12
9 References ……………………………………………………………..13

1 Introduction

The utilization of artificial intelligence in internet shopping is changing the E-trade industry
by anticipating shopping designs dependent on the items that customers purchase and when
they get them. For instance, in the event that online customers regularly purchase a specific
brand of rice each week, at that point the online retailer could send a customized offer to

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these customers for this item, or even utilize an AI empowered suggestion for a beneficial
item that works out in a good way for rice dishes. Internet business AI apparatuses or AI-
empowered computerized colleagues, for example, the Google Duplex instrument is creating
abilities like making staple records (from the customer's regular voice) and in any event,
submitting web-based shopping requests for them.

Electronic Commerce and Artificial Intelligence have grown emphatically as of late, in

2018 China's online retail market scale keeps on extending, the online retail deals arrived at
9 trillion Yuan, among them, online retail deals of actual merchandise added up to 7 trillion
Yuan, increment 25.4% from a year sooner, added to 45.2% of all out retail deals of social
purchaser products increment, a 7.3% expansion in 2017. The quick advancement of internet
business gets accommodation to purchasers’ request to enhance operational proficiency,
improve the nature of administration, the electronic trade stage ceaselessly investigate better
approaches to fulfill even more needs of customers. The rise of artificial intelligence has
opened up novel thoughts and examples for the advancement of online business and
examples Electronic Commerce (EC) alludes to the utilization of the Internet and present-
day correspondence innovation for any type of business activity the executives or data trade.

2 E-commerce is business model

The center of E-commerce is plan of action dependent on electronic hardware and

organization innovation, as it gadgets' the business cycles of all business exercises, including
not just the remotely arranged business measures in business exercises of undertakings, for
example, network showcasing, electronic installment, coordination and circulation, yet in
addition the inner business cycles of endeavors, such as Supply Chain Management(SCM),
Enterprise Resource Planning(ERP), Management Information System(MIS), Customer
Relationship Management(CRM), Humana Resource Management(HRM).

The fundamental innovation establishment of e-commerce incorporates: Electronic Data

Interchange (EDI), Internet, Extranet, Intranet, E-mail, information base, Web development
innovation, and so forth Online business is a financial and innovative upset; it is the result of
economic, logical, mechanical and social turn of events. It depends on the Internet, with the
help of PC network innovation; understand the nearby coordination of business innovation,

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data innovation and the executive’s innovation with solid complete qualities. The
advancement of internet business changes the method of business exercises of undertakings
and individuals' utilization conduct and gains extraordinary commitments to worldwide
financial ground.

Artificial intelligence helps online business organizations improve results, with Artificial
Intelligence, machines are figuring out how to help us and how to perform manual errands
and is entrancing that they are tackling their work amazingly great, permitting us to zero in
additional on an essential degree of business. Artificial intelligence is a pattern, however it
gives us such countless open doors that it is only difficult to cover them across the board
article. Allow us to zero in on the most remarkable and in vogue arrangements. There are
alternate methods of utilizing Artificial intelligence in online business and in this section, as
the most famous utilization of Artificial intelligence in online business is to more readily get
clients, produce new leads and give an upgraded client experience. As online business has
become the standard strategy for buying products and ventures, driving online business
brand seriously put their cash in investigating how AI can improve brand seriousness and
client steadfastness.

Artificial intelligence innovation is getting increasingly develop and is significantly

changing the manner in which individuals work and live, particularly in the field of
electronic business (E-trade), and it has step by step formed into an integral asset to help
deals development and upgrade internet business tasks. As of now, the utilization of
Artificial intelligence in the field of internet business is basically reflected in the
accompanying perspectives: (talk bot) whose essential capacity is to consequently react to
client questions, react to basic voice orders, and give item proposals utilizing a characteristic
language preparing framework. Visit discoursed on internet business destinations and
portable pages depend on AI calculations modified to speak with clients in a customized
way. Visit bots can help shoppers find appropriate items, check the stock circumstance of
items, think about different items, lastly assist purchasers with paying. If there are any
protests or questions, the talk bot can likewise help clients contact the comparing
administration staff. Buyers can converse with the robots through content, voice and even
pictures.

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3 Recommendation Engine

The suggestion motor is a finished proposal framework dependent on AI calculation

structure. Utilizing AI calculation can understand profound learning, measurable
programming, forecast and examination of client conduct, of enormous informational
indexes, and foresee which items are probably going to draw in clients. To start with, in
view of late pursuits by possible clients, the AI calculation in the proposal motor can record
key subtleties of the looked through item dependent on the estimation results, The proposal
motor at that point creates suitable Suggestions for the program and records them on an
individual page, eventually assisting customers with finding the item rapidly. The utilization
of dimensionality decrease calculation opens the change of suggestion framework by
artificial intelligence, The most significant difference in the proposal framework by
artificial intelligence is that the proposal framework is not, at this point viewed as an
autonomous mix of proposal results, however the entire human-PC cooperation conduct.

The dynamic element of the framework and the client can be acknowledged by presenting
the time measurement, numerous online business organizations, for example, amazon and
Alibaba.com, use suggestion motors to recognize the intended interest group for their items.
3.3. Keen Logistics Intelligent coordinations alludes to a coordinations improvement mode
in which gear and control are made insightful by utilizing data innovation, to supplant
individuals with specialized hardware. Contrasted and customary coordinations mode, savvy
coordinations can incredibly improve administration quality and activity effectiveness. The
idea of clever coordinations was first proposed by IBM in 2009. At first, IBM proposed a
brilliant production network that would create constant data through sensors, RFID tag,
brakes, GPS and different gadgets and frameworks. The quickest effect of AI is on the
backside store network and coordinations joins. Anticipating stock isn't basic
notwithstanding quickly changing interest and serious business sectors,

Nonetheless, artificial intelligence and profound learning calculation can decide the vital
components of request cycle and compute the impact of these variables on turnover and
stock through the model. The benefit of AI frameworks is that they can get more intelligent
over the long run, making it more exact for organizations to anticipate stock interest. As of

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now, in the field of smart coordinations and warehousing, Alibaba and JD have delivered
unattended robotized wise stockpiling frameworks.

With the fast progress and persistent advancement of examination innovation, profound
learning stage ,voice investigation innovation, biometrics innovation, picture
acknowledgment innovation, video investigation innovation, robot programmed preparing
framework, text examination and natural language processing (NLP) and other standard
artificial intelligence advances will grow consistently, and AI will keep on advancing the
turn of events and change of online business later on. Man-made reasoning procedures have
ventured into the fast track, with develop innovation, is getting increasingly more broadly
applied, it is growingly affecting angles, for example, client maintenance and consumer
loyalty in internet business exchanges.

Over the long haul, Artificial intelligence will turn into a significant main impetus for the
change of e-commerce. With the help of AI innovation, internet business will have a more
extensive advancement prospect, which is helpful for the foundation of better client
relationship the executives and the advancement of deals to overcome any barrier among
personalization and protection.

4 Advantages of Artificial intelligence in e-Commerce

The main benefits of using AI in e-commerce include:

1- Client driven visual hunt: Shoppers are regularly baffled with online business experience
on the grounds that the item results demonstrating are frequently immaterial. To handle this
issue, artificial intelligence utilizes regular language preparing to limit, contextualize, and
improve query items for online customers. Additionally, it permits having visual inquiry
abilities, finding and coordinating items. Additionally, artificial intelligence empowers
customers to find reciprocal items and improve the client experience. Presently, shoppers
may snap a photo of a companion's new shoes or new workout clothes, send it, and
afterward artificial intelligence empowers shoppers to effortlessly discover comparative
things through internet business stores. For instance, Amazon has this choice, which permits
you to point at an item that you like and Amazon will recognize it and gives you the
outcomes you will most presumably like since it will be actually the thing you were looking

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for. In this way, artificial intelligence makes it as simple as workable for us to buy items that
we love on the web.

2- Re-target possible clients and improve the business cycle: A few scientists found that in
any event 33% of advertising leads are not followed up by the outreach group. This implies
that pre-qualified potential purchasers keen on an item are simply abandoned. Additionally,
numerous groups are over-burden with unmanageable client information that they do pretty
much nothing or nothing with. What's more, that is when artificial intelligence is a genuine
need. Artificial intelligence could assist with upgrading the business cycle, by fitting your
critical thinking arrangements and making a solid deals message that arrives at buyers at the
ideal time on the correct stage. These days, there are numerous artificial intelligence
frameworks that empower NLP and voice contribution, for instance, Siri, Alexa, and so on
This permits a CRM framework to answer client inquiries, take care of their issues and even
distinguish new open doors for the outreach group. For instance, the North Face, a huge
online business retailer, utilize IBM's artificial intelligence arrangement Watson to all the
more likely comprehend their purchasers. They can help their clients locate their ideal
garments, by asking the client inquiries, for example, "where and when will you utilize your
running garments? "what's more, clients can reply by saying it or composing it. IBM's
product at that point examines many items to discover wonderful matches dependent on
continuous client input and does extra research to discover the climate conditions in the that
zone, and so forth.

3- New degree of personalization: There are numerous artificial intelligence arrangements,

for instance one of them that I truly need to make reference to is Boom train. This
organization investigations distinctive touch focuses to assist the business with breaking
down how clients are associating on the web: by means of portable application, web, email,
and so forth Also, artificial intelligence motor is checking all gadgets and channels to make
a widespread client see. Also, obviously, it encourages online business retailers to convey a
consistent client experience across all stages. It will assist with sending applicable messages
at the perfect time.

4- - Chat-bots and virtual assistance: E-Commerce business is currently centered around the
client experience. The utilization of AI through the use of "chat-bots" is simply headed to

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drive the discussion in the period of conversational commerce. Also, it is in reality more
than chat-bots can computerize request measures. Additionally, they are a successful and
minimal effort method of giving all day, every day client care and gather significant
information and track conduct. With chat-bot, e-commerce locales can build conversion
rates by fitting the online experience for the customer. Also, Juniper Exploration says chat-
bots will save more than $8 billion yearly by 2022. Once more, quite possibly the most
popular models is, obviously, Amazon's remote helper, Alexa. It has coordinated into
Amazon's own items just as items from different producers. Virtual assistance is required to
affect clients' buy and give an inventive occasion to e-commerce retailers to exploit.

5-Improve suggestions for clients: With AI, brands can all the more cleverly and proficiently
foresee client conduct and request and offer significant and accommodating suggestions.
Incredible model is Starbucks; it utilizes artificial intelligence to dissect all the information it
has assembled to convey more customized recommendations. The calculation considers: the
client's data, client inclinations, buy history, outsider information, and relevant data.

6-Imtelligent agents: New intelligent agents exchange framework has become a famous
device utilized in e-commerce. There are 3 principal use cases: coordinating purchasers and
merchants; encouraging exchanges; and giving institutional framework. Also, prepare to be
blown away. Everything in a programmed way!

7- Automation: artificial intelligence doesn't imply that the robots are dominating. These
days many individuals are terrified that all that will be finished by robots in the closest
future. Actually no, not actually! Robots offer occasion to retailers to give precisely what the
client needs, when they need it, by utilizing innovation and calculations. As firms in the e-
commerce proceed to extend and that implies having a developing number of clients,
robotization turns into an unquestionable requirement and got one of their top venture needs
for e-commerce stores. Also, as we probably are aware, when e-commerce begins to
develop, the quantity of monotonous assignments develops too. Robots can take them over;
everything from distributing new items on different channels to planning deals, offering
limits to faithful clients, and so on Amazon submitted $5 billion in its tech interests in India

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alone, and Alibaba is investigating emptying $15 billion into innovative work spending
throughout the following three years. Forrester Exploration (PDF) predicts that artifical
intelligence related ventures will develop by around 300 percent in 2017, with organizations
getting more serious by 2020 and acquiring $1.2 trillion every year.

5 The technological advancements

The technological advancements like artificial intelligence (AI), Big Data, Distributed
computing, cryptography and internet or mobile based products lead to suggestive analytics,
machine learning, smart contracts, digital wallets, etc. (Taylor & Francis 2019). Financial
industry can make payments, exchange, invest and manage their risk by using remarkable
technological methods. With the rapid growth of FinTech there is need and a desire for a
change in the policies (Luxton, David D 2014) hence, the concept of Reg-Tech is coming to
fruition (G Gurkaynak, I Yilmaz, G Haksever 2016). Similarly, the role of Insur-Tech is also
growing.

The presentation of Fin-Tech in nations, particularly the non-industrial nations can assist
with boosting economic development yet this will likewise prompt increment the remaining
task at hand of controllers as they should guarantee the dependability of the financial
framework and shield it from misrepresentation activity and emergencies. Subsequently,
legitimate checking by the administrative specialists is vital to evade digital assault,
information spillage, and information robbery as it can prompt abuse of the data. For the
great consequences of Fin-Tech, the clients just as the controllers must know with the
structure and the working of the framework and the guidelines ought to be set up adequately.
Fintech progresses are made conceivable through information and proficiency. Stage utilize
elective information sources, for example, service bills and prescient data to comprehend
their client financial lives and survey their capacity to reimburse. Then again, a similar
information and proficiency progress that permits clients to be incorporated can simply
permit them to be misused.

We will focus on clarifying the Fin-Tech, open doors for financial establishments, and
the difficulties confronting these foundations in executing FinTech arrangements. Today
Financial technology (Fin-Tech) is presented as a distinct advantage. How Fin-Tech is

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overcoming any barrier among finance and technology and carrying them a lot nearer to one
another to such an extent that they are the fundamental piece of one another summons a
feeling of progress, with the unknown and questionable viewpoint and result (World
Monetary Discussion, 2017) Fin-Tech is dedicated to organizations or their agents that
consolidate financial administrations with later, trend-setting innovations (J Shabbir, T
Anwer - 2018)

Fin-Tech is a term flipped in the new past for technological advancement in financial
administrations. Controllers are pursuing building up a normalized definition of this wide
term. Right now there is no internationally perceived definition for the term “FinTech.” (D
Castro, J, 2016) Nonetheless, as per the Financial Stability Board (FSB), of the BIS1,
"FinTech is technologically empowered financial advancement that could bring about new
plans of action, applications, cycles, or items with a related material impact on financial
business sectors and establishments and the arrangement of financial administrations" (Save
Bank of India, 2017). Fin-tech is the consolidation of two terms: finance and technology. Its
principle objective in financial foundations is to improve the monetary development in the
general public with the utilization of consistent financial arrangements. Similarly, FinTech
gives financially savvy answers for the organizations and particularly new companies that
help in the decrease of their expenses and improvement in business measures. Financial
industry is a tricky yet significant area in the general public and thus vigorously managed by
the controllers.

The point of this definition is to get a wide assortment of developments financial

administrations under one umbrella utilizing technologies, paying little mind to their sort,
size, and administrative status. This broadness in definition is useful while estimating and
assessing the creating financial industry with its difficulties and openings. According to the
law, new contestants in the market offer Web based and application-arranged items.

The financial help industry has experienced a few phases of advancement from
accounting, to the shaping of focal, public banks and installment frameworks and later
presentation of complex resource markets and other financial items. Creative installment

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frameworks like progressed wallets have been created and the web, retail, and telecom
industry has begun offering financial administrations. In the previous decade numerous
technological advancements have occurred which are being applied imaginatively in all
elements of finance from installments to investment funds, getting, hazard the executives
and financial warning.

The Fin-tech biological system incorporates fin-tech new businesses, technology engineers,
governments, financial clients, customary financial foundations, and controllers. The job of
colleagues with the fin-tech environment is another significant fragment (H Ashrafian
2015). Following the knowledge based plan of action, most firms have stayed little yet
interests in them have expanded. As per the IMF report, worldwide interest in FinTech rose
from USD 9bn in 2010 to USD 25bn in 2016. Funding speculations have likewise extended
from USD 0.8bn in 2010 to USD 13.6bn in 2016. The estimation of public FinTech firms
has quadrupled since the worldwide financial emergencies, out passing different areas.
Public area for the section seems to have grown dramatically meanwhile.

Working together with FinTech organizations is the most normally utilized type of
partnership among FinTech organizations and Financial Administrations; as indicated by
one report, 35% of the FIs are probably going to have joint endeavors with FinTech
organizations.

Associations among FinTech and Financial Help grant straightforward, versatile, and by and
large insignificant danger courses of action for the two players to play off each other\'s
solidarity. On one hand, tenants can saddle the newcomers‟ arrangements and technologies,
while limiting the expected result from failure to what in particular is specified in the
affiliation ostentation. Of course, the technology associations exploit from the organizations'
financing, and possibly from their present customer associations and brand. Meanwhile,
these associations offer productive open doors for the Financial Administrations and
FinTech associations to recognize and distinguish troubles and work on improving their
associations supplement one another.

The financial industry sector has undergone major transformations over the centuries due
to changes in political and geographic regimes and legislation, several authors (Schueffel,

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2016) state that a new era is being born for banks with the rise of Fin-techs. This is an
underexplored phenomenon and represents an important challenge for academia as well as
for managers in the financial industry (Schueffel, 2016)

Fin-tech appears as a “buzz word” or hype, especially in the press, as if it were an

important phenomenon that should be observed by practitioners linked to the financial
industry, information technology (IT) and innovation (incubators, venture capital, angels,
among others).

Derived from contracting the words finances and technology, the term “fin-tech” arose
in the scientific literature in 1972. In an academic article, the vice president of
Manufacturers Hanover Trust, Abraham Leon Bettinger, detailed models about how daily
problems encountered in that organization were analyzed and resolved, and formulated the
fin-technology, combining bank expertise with modern management science techniques and
the computer” (Bettinger, 1972).

Fin-Tech or fin-tech, in the present context is a neologism that describes the

connection of the modern, such as internet- related, technologies (for example, cloud
computing, mobile internet) with business activities typical of the financial services
industry (for example, loans, payments, transfers of monetary values and diverse banking
operations) . Despite the increasing interest in fin-tech, there is still a lack of consensus on
its definition among scholars and practitioners and on the theoretical foundations of this
field.

Furthermore, there is a notable lack of works in the academic literature that deal with
this subject systematically or that seek to map it in such a way as to abbreviate surveys of
the existing literature to point to new research activities as well as to structure scientific
knowledge in this area, and thus to be able better to subsidize its researchers and
practitioners. Looking to address this research gap, this chapter aims to investigate the
concept of fin-tech, to map the literature and point out new routes and opportunities in the
field. To achieve that objective, the following research questions (RQ) were formulated:
RQ1. How has the literature on fin-techs evolved over time? RQ2.ollowing definition for

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fin-tech: “an acronym which stands for financial technology, combining bank expertise
with modern management science techniques and the computer” (Bettinger, 1972).

6 Challenges and Opportunities of FinTech

Challenges

- As most fin-tech has an asset-light digital focus business model, they have a
competitive edge over traditional IFLS in terms of cost and scale. These new
market players challenge the industry by capturing business opportunities and
empowering competitors by offering their services to them.
- Threat to information security and private is another challenge. The adequacy of
current security standards and protocols is questioned considering high cyber
security events in recent years.
- There is a high level of trust in fin-tech, though. New arrivals in fintech can
collaborate with IFLS, technology and telecommunication companies to benefit
from their image and fasten the process toward building trust.
- Perhaps future of FinTech is a dark cloud with silver linings, the major threats or
the challenges arising from the revolution of FinTech includes regulatory risks,
downward pressure on margins and information security.
- If the regulatory aspect is ignored, it can lead to missed opportunities in FinTech
investments. IFIs and technology players could be seeking regulators as heading
for direction towards FinTech for investment. Currently the regulatory
development for FinTech is at its very early stage, there is a requirement for
profound discussions and continuous engagement between regulators, IFIs and
FinTech partnership for building trust over the new FinTech environment is very
necessary. In the meantime, the vast variety of FinTech and its diversified
business plans make it challenging for regulators to build up a one-size fits-all
regulatory framework. For this reason, deep conversations and regular meetings
and engagement between regulators, IFIs and FinTech partners in the current
early stage of regulatory development is very crucial and necessary for building
clarity and trustful environment.

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 - Since most FinTech companies have an asset-light, digital focus business model,
they have a competitive edge over traditional IFIs in terms of costs and scale.
There is no requirement to own information technology themselves; they can hire
or outsource the cloud for operational infra-structures. Thus, these new market
players challenge the industry by capturing business opportunities and
empowering competitors by offering their services to them.
- Threat to information security and private is another challenge. Currently, this
issue is very important. The adequacy of current security standards and protocols
is questioned considering high number of cyber security events in recent years.
PwC‟s Global State of Information Security Survey 2016 reported a 38% rise in
security incidents detected globally in 2015 than in 2014.
- Decreased market share and increased customer churn rate is another big
challenge. FinTech allows customized and online solutions like robo-advisors and
peer-to-peer lending platforms that are cheap, easy to use and conveniently
available. This results in a loss of market share. However, despite all these
considerations, many IFIs believe that customers are not ready for completely
substituting their services with FinTech innovations, which is the major reason
why increased customer churn is not a big concern.But flipping the coin, there is a
high level of trust in FinTech
- The recognition that FinTech just represents a generally low risk of increased
client churn for IFIs might be because of the time it takes for startups to develop
clients' trust and build their reputation and brand image.

Opportunities

In any case, new arrivals in FinTech can collaborate with IFIs, technology and
telecommunication

Companies to benefit from their image and fasten the process toward building
trust.

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- The above situation features the dynamic idea of the FinTech environment. The
perception of customer can move and FinTech players can approach third party
brands and influencers for creating trust.
- Differentiation is perhaps the most sought-after opportunity arising from FinTech,
as selected by 87% of Malaysian respondents in PWC‟s survey. This advantage is
specifically valuable in a well matured, competitive and developed IFIs.
- As FinTech is relatively new, the IFS and FinTech companies, by joining hands
together, can easily distinguish, discriminate and differentiate themselves from the
rivals. They have a chance of being the premier ones, especially in developing
countries‟ markets like Pakistan to provide new innovative product offerings.
Therefore, differentiation due to FinTech is important to IFIs.
- The Reduced Costs is another major opportunity for adoption of FinTech. These
efficient and cost-effective service solutions like software as-a-service (SaaS) are
shifting the structure from physical channels digital and mobile delivery. IFIs‟
partnerships with FinTech companies can improve, rationalize, and streamline
IFIs‟ operations with less operational costs. Moreover, the “asset-light” models
that FinTech companies use, can be looked by IFIs to reap the fruits of cost
reduction.
- Improved Customer Retention: The FinTech solutions for IFIs can offer healthier
customer engagement, with more touch points and better relations through more
frequent interactions. This would directly hit customer loyalty in a positive way.
- The financial technology (Fin-Tech) is seen as one of the technologies that would
revolutionize the banking industry. It’s globally believed to be the challenging
technology that would empower firms to compete effectively in the 21st century.
Governments around the world have paid attention to this challenge and devised
policies and regulations to support fintech development. Banks invest heavily in
technology in attempts to improve the efficiency of the financial innovation
system.
- The banking sector is regarded as a service sector – a tertiary sector where the
industries involve the transformation of material good, people or information.
Fintech payment innovations offer new landscape in the digital era of financial

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 industry. It also provides a platform for banks and non-banks to facilitate cross-
network transfers and payment services.
- A bank is no longer the only center for all financial services. E-commerce or
telecommunication companies could create new forms of financial services using
technology to use the role of banks. Fintech companies can choose to be the
“disrupters”- players that enter the market to compete against existing financial
institutions, or collaborators - Those primarily targeting financial institutions as
customers.

7 Conclusion

In conclusion, we dare say that AI is on the rise in the e-commerce industry, however, it
is still far from being perfect. E-commerce firms continue to improve their AI tools to better
match market demand. They also partner up with other companies to merge their
competencies in AI and create more sophisticated solutions. We believe that Artificial
Intelligence in e-Commerce will impact transactions, customer retention, satisfaction,
efficiency and many more. AI is changing the way we buy and sell online. If you are
working on an e-commerce project and you need help with software development, let us
know! We would be happy to know more about your project!

Artificial Intelligence in E-commerce is playing a leading role in driving innovative

solutions and customer experiences. Some the leading use cases of artificial intelligence in
E-commerce are in the area of personalized shopping, product recommendations, and
inventory management. In addition AI can help firms leverage the possibilities of AI and
machine learning in E-commerce domain.

8 FinTech in Taiwan

Taiwan’s government aims to attract 5 billion TWD in total funding and at least 30
startups. Among these actions, some are regulations that allow banks, insurers, or other
finance-related companies to operate the digital finance businesses. The TFSB’s fintech
development strategy white paper (financial supervisory committee 2016 c) outlines a
strategic framework identifying the major development dimensions: payment, insurance,
loans, crowd funding, investment management and market supply.

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 Bradenburger and Nalebuff (1969) argued that cooperation and competition exist and are
desirable in every industry (Levinson and Asahi 1995). When all players focus on market
growth, then they must cooperate to increase the benefits to all players (Hill and Lynn
2003). At the same time, competition distributes the benefits earned by individual players
depending on their market share. However, Banks, Technology Companies, and Customers
are not “FinTech Ready”. Taiwan is behind in the revolution of financial digitalization in
terms of practical development, customer adoption and legislation. Taiwan’s banks have
been protected for too long. Banks, technology companies and customer are not “fintech
ready”. Firms in the industry face high entrance barriers, high competition and a market size
that is not attractive to new challenges.

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