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AI Agents 101: What They Are and Why You Need Them
Updated:
10
minutes read
In this day and age, staying on top of newfangled technology is pivotal for eCommerce merchants to keep up with the competition. The innovation of AI brings along variations that offer unique support for business owners, with AI agents being a prime novelty that many entrepreneurs have started to utilize. In this blog post, we will give you an in-depth guide on everything you need to know about this versatile tool, its application in practice, as well as a look at the future of AI agents as a universal apparatus.
What are AI Agents?
AI agents, AKA intelligent agents, are software systems that are designed to operate anonymously through the perception of their environment. They then analyze the data, make necessary decisions, and perform tasks to achieve predetermined goals. These goals are set by humans, but the AI agents deliberately choose the best course of action to take to succeed through the most optimal approach. This way, constant human intervention is not needed.
In its essence, AI agents eliminate the typical premise of a run-of-the-mill AI system where they learn to handle tasks via pattern recognition or with specific prompts. Depending on the complexity of the desired objectives, one can use AI agents for something as simple as chatbots, all the way to self-driving cars.
A well-known example of an AI agent is Tesla’s Autopilot - an advanced driver-assistance system (ADAS) that helps users navigate their Tesla vehicles while on the road. It uses a variety of tools, namely cameras, ultrasonic sensors, and machine learning to take on the driver’s role. Without needing to be fed specific prompts, Tesla’s Autopilot is able to operate seamlessly and safely. This technology has gone from being a luxury just more than a decade ago to gradually becoming a more accessible assistance in the past few years, signaling the rapid growth of AI agents in our everyday lives.
Labeled as a system under the umbrella term Artificial Intelligence, AI agents are categorized into different components in and of themselves. From simple reflex to utility-based, users can now cherry-pick the model that suits them the most to fully capitalize on this brilliant technology.
The Most Common Types of AI Agents
AI agents take multiple forms, but they are all designed to help humans reach their desired goals efficiently.
Simple Reflex Agents
Simple reflex agents are the most basic form of AI agents. Its premise is straightforward: they operate by responding to immediate situations without extensive training. This means any trace of historical data is irrelevant since it fully relies on an “if-then” basis.
Due to its clear-cut characteristics, people tend to use simple reflex agents for tasks like password reset - if a specific keyword appears in a user’s conversation, then the password is reset. By operating in such a basic manner, these agents are foolproof for predictable duties but are not made to handle more intricate situations that go beyond an “if-then” principle.
Model-Based Reflex Agents
Model-based reflex agents are a more elevated version of the simple reflex ones, where historical data is factored in. Its advanced mechanism concentrates on the evaluation of probable outcomes, with the addition of past situations. Instead of solely relying on a specific formula, model-based reflex agents remember past events to navigate complex environments. For instance, an automated vacuum cleaner (i.e. Roomba) creates an internal model of its surroundings to know where to clean. As opposed to following a predetermined path, the Roomba maintains a map of the area that it has previously scanned to make a logical decision like changing direction or returning to the charging dock. For these types of agents, memory becomes the core of its functionality.
Utility-Based Agents
When it comes to utility-based agents, the most desired outcome is everything. This type of AI agent does not operate based on reflex with a fixed principle. Based on the probabilities of different outcomes, they will opt for the one that maximizes utility. In other words, whichever they deem as the most rewarding for users, these AI agents will strictly follow the path that leads to said outcome. One primo example of these tools is when customers look up flight tickets, the website/app algorithms will filter the results to showcase the ones with the minimum traveling durations and cheapest prices. If you constantly have to deal with picking between scenarios with a verifying level of benefits, utility-based agents will be your right-hand man.
Learning Agents
The name learning agents is pretty self-explanatory. Like us humans, these software functions by learning from their past experiences and gradually improving their performance. By embracing flexibility, they are able to modify their training and behavior based on external feedback. In eCommerce, an instance of a learning agent is an AI-driven product recommendation system. As the engine follows the user around throughout their whole journey, the ability to exhibit items that match their browsing and purchasing gets better and better as time goes by. From observing which product one checks out, the time spent on a certain page, to order history, and overall interaction with every element on the website, learning agents can tailor the customer experience for maximum satisfaction.
Goal-Based Agents
Goal-based, AKA rule-based agents have a distinct methodology for achieving the most optimal result. Instead of simply reacting to the environment, they weigh different approaches and evaluate them based on their effectiveness at getting to the end goal. They are designed with one singular purpose: to find and follow the most efficient path for maximum success. This forthright nature makes them an excellent assistant in pathfinding algorithms, like chatbots in an eCommerce setting. When a question or concern is raised, these AI-powered chatbots aim to guide customers towards a specific outcome. To do so, their only job is to find the most legitimate way to meet this goal without the sacrifice of time and resources.
Interactive Agents
If a real-time interaction with these software is your thing, interactive agents are your gist. As the name suggests, they will engage in an ongoing conversion with a human, where both sides take turns talking. Built on the basis of mimicking a natural dialogue in a friendly manner, these agents are able to process human language and understand nuances and contexts, while offering helpful solutions at the same time. With this description, virtual assistants such as Alexa or Siri might have popped up in your mind. These familiar names embody the essence of an interactive agent, and they can also be found across many industries with various purposes, be it decision-making, problem-solving, or performing commands.
Benefits of AI Agents for Your eCommerce Store
AI agents have gone from being a mere preference for eCommerce sellers to an integrated element that massively boosts a website’s performance in every facet. If they were not proven to provide exclusive benefits, business owners would not have dabbled in the implementation of these tools. Let’s check these advantages out to see if they can speak to your brand.
Improve Customer Experience
Customer experience is a crucial part that determines how a business will grow in the long run, and AI agents can help sellers improve this aspect greatly through their advanced methodology.
In eCommerce, customer experience should always be prioritized. A polished store is worth nothing if an enjoyable shopping experience cannot be attained, and AI agents can be the ultimate solution to this problem. 24/7 chatbots and virtual assistants are handy additions to your website that are capable of delivering timely support, while smart recommendations significantly streamline the user experience to a T. A well-rounded customer experience also naturally leads to higher conversion rates and better brand impressions.
Enhance Website Automation
AI-powered website automation encompasses components like inventory management, order fulfillment, product recommendations, customer segmentation, and the like. Instead of having to be hands-on with these day-to-day tasks, merchants are now free to shift the focus onto other more imperative duties. With machine-learning algorithms, these tools can also minimize errors - a helpful quality when it comes to business operations. As a whole, this aspect of AI agents is especially conducive for eCommerce sellers due to their ability to reduce manual labor, cut costs, detect technical issues, and improve accuracy.
Assists in Decision-Making
A dedicated process is needed for an informed decision to be made, and that is exactly what AI agents can grant a busy eCommerce hustler. From aspects like customer behavior to market trends, these tools are excellent at predicting the next moves one should take that will benefit their business. With the ability to analyze a large sum of data and statistics, sellers can count on AI agents to provide them with valuable and practical insights. Whether they are tasked with price strategizing, marketing, or competitor analyzing, you will be guaranteed a set of approaches to make the ultimate decision that transforms your business.
Fraud Detection and Security
Fraud detection is a proven benefit that AI agents will be able to bring users to protect their websites.
When you do business digitally, fraud is unfortunately a common occurrence. While it takes a lot of effort to completely avoid fraudulent activities while maintaining an active eCommerce website, you could lean on an AI agent to keep these at bay. With features like real-time fraud detection and regular store checkups, it is much easier for these software to identify suspicious transactions or scams. By nipping it in the bud, online merchants can greatly reduce the risk of account takeovers and false chargebacks.
The Future of AI Agents in the eCommerce Sector
Forecasted Trends and Innovations of AI Agents
ChatGPT stands on top as a household name when people look for a versatile AI tool.
The AI landscape is constantly evolving, with new technology being churned out monthly. Albeit not a new concept, the development of AI has garnered an overwhelming amount of attention in the past three years. With versatile software like ChatGPT being many’s go-to assistance with work or leisure, a sleuth of other similar autonomous AI agents has been launched to cater to an even wider demographic. According to experts, it is only uphill from here. Below are some of the imminent AI trends that one could expect:
- Personalized Experience: this trend is the most evident in fields like retail and eCommerce. Precise product recommendations, virtual try-ons, customer support, etc. are all criteria that can benefit from AI.
- Advanced Natural Language Processing: more natural and smoother language translations are in the work as a prevailing trend with AI agents.
- Ethical AI Development: AI remains a controversial topic, where the discussion of integrity is at the core. Thus, the need to build an ethical AI system that aligns with human values, especially without privacy invasion, is on the rise.
Will AI Agents Replace Human Workers?
When the topic of AI is in the spotlight, it is a challenge to reach a general consensus about the contribution of this innovation to our daily lives. Some are more prone to want to bask in the convenience it has created, while others still have massive doubts about the ethics of AI as a whole. As stated by the World Economic Forum, AI is incredibly prevalent in tech-focused fields and its impact can be seen in a positive light as it has created a plethora of opportunities for human workers to evolve with the industry. That said, when putting AI agents and human workers on the scale, they are not likely to replace human workers completely.
All in all, many other professions will witness a discernible transformation in the industries, but the invention of AI, especially AI agents, will not displace human roles any time soon.
Over to You
The rise of AI agents has opened many doors for sellers in the eCommerce sector for exponential growth since the accessibility of avant-garde technology is right at their fingertips. By investing time and effort to make AI work to your advantage, your business will be able to reach new heights, feasibly surpassing the competitors in the same field. This guide was made to cover the most elementary characteristics of AI agents, and now it is over to you to explore this solution deeper to stay ahead of the curve.
FAQ about AI Agents
What are AI agents?
AI agents are software that perform tasks based on their perception of the surrounding environment by collecting data and making informed decisions in a logical manner. These software are designed to help users achieve their desired goals with cutting-edge technology and widespread availability.
What are some common types of AI agents?
The most common types of AI agents that one could utilize are:
Simple Reflex AgentsModel-Based Reflex AgentsUtility-Based AgentsLearning Agents Goal-Based AgentsInteractive AgentsFor more details, follow this link: The Most Common Types of AI Agents.
Simple Reflex AgentsModel-Based Reflex AgentsUtility-Based AgentsLearning Agents Goal-Based AgentsInteractive AgentsFor more details, follow this link: The Most Common Types of AI Agents.
What are some AI agent's examples?
Businesses of all sizes have timely tapped into the surge of AI agents, including the top dogs like Apple or Tesla. Below are some of the prime examples of AI agents that were introduced as parts of these companies’ services:
Siri - Virtual Assistant
Tesla Autopilot - Driver-assistance System
Dall-E - Text-to-image Generator
Replika - AI chatbot
Siri - Virtual Assistant
Tesla Autopilot - Driver-assistance System
Dall-E - Text-to-image Generator
Replika - AI chatbot
