I started Pipe17, as co-founder and Chief Technology Officer, because I saw the need for more powerful information technology that would give brands, merchants, third-party logistics providers (3PLs), as well as the broader ecommerce ecosystem, greatly improved operational efficiency and more profitable growth. Omnichannel data is too siloed into various back-office systems, but with Pipe17 you can seamlessly flow commerce data between all your channels. Now with the rapidly evolving capabilities of artificial intelligence (AI), there is an opportunity to take an even bigger step forward. I want to share with you our perspective on where we are today and what an AI enabled future might look like for ecommerce operators. If you’re interested in learning more about Pipe17’s current AI-powered capabilities, you can checkout the Pipe17 AI webpage and read our latest AI feature announcement.
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The Evolution of AI in Ecommerce Operations
Artificial intelligence has moved beyond being a buzzword; it’s now a critical technology that companies across every industry—from ecommerce and retail to travel and hospitality—are incorporating into their business strategy.
At Pipe17, we’ve purposefully and prudently embraced AI for years, with our core AI focus areas being intelligent algorithms, machine learning, and big data analytics.
- Intelligent Algorithms. To automate and optimize omnichannel order to fulfillment routing and multichannel inventory management.
- Machine Learning. To continuously enhance error and exception detection, notification, and resolution.
- Big Data Analytics. To improve operational efficiency and decision-making by extracting insights from vast amounts of omnichannel transactional data.
These AI disciplines have always been a natural fit for the solutions Pipe17 provides, and I can’t imagine a future where they’re no longer a vital component of order operations platforms.
But more recently—since 2022—the vast majority of attention and intrigue in artificial intelligence has revolved around generative AI (GenAI), and for good reason. GenAI is on a path to revolutionize how humans work, learn, create, receive information, and interact with businesses. While it may be easier to see GenAI’s potential to transform some industries, such as advertising or cyber security, as well as departments like customer service or accounting, make no mistake: GenAI will proliferate across all industries including ecommerce, and departments including operations.
Gen AI | Machine Learning | Big Data Analysis | Intelligent Algorithms |
---|---|---|---|
Where AI for Ecommerce Operations is Headed
Conversational AI is the future of ecommerce operations. Imagine a world where:
- Any omnichannel operations question—like ‘Where is my order’ (WISMO) or ‘How many yellow shirts do I have left and where are they located?’—can be answered accurately and immediately via conversation (chat or voice).
- Errors, exceptions, and problems are automatically fixed and your order operations platform reconfigures/self heals itself to avoid similar errors in the future.
- Every ecommerce business—from brands and merchants to 3PLs and SaaS providers—can streamline their order, fulfillment, inventory, product, and return flows in hours—not days, weeks or months.
- Cross-functional teams like finance, customer service, and marketing receive real-time operations data in the systems they use—like ERPs—without lifting a finger.
- Integrating selling, fulfillment, and back-office channels to match custom and unique business requirements takes seconds, or can be done without any human input at all.
- Configuring, managing, and optimizing your ecommerce operations is as simple as having a conversation.
- Adding a new selling channel, intelligently listing products, and automatically processing them to the optimal fulfillment center requires zero human administration.
This is where ecommerce operations are headed, and it’s not 10+ years away; this is the reality we are creating at Pipe17.
Proactive Operational Artificial Intelligence
AI’s role in order operations goes beyond configuration. When the AI disciplines discussed earlier—intelligent algorithms, machine learning, big data analysis, and Generative AI—are aligned to support a common goal, any raw data can be transformed into actionable insights.
- Generative AI is your ecommerce operations manager. It’s the conversational interface that gives immediate and accurate answers to questions about your omnichannel operations without needing to run a report or filter a dashboard. It’s the connective tissue between humans and machines that has an intimate understanding of your business and order operations best practices.
- Machine learning continuously analyzes the flow of your omnichannel data and compares it with previously learned experiences from billions of other transactions to identify trends and surface anomalies.
- Big data analysis detects new exceptions to add into the machine learning knowledge bank, and provides recommendations to optimize your operations based on millions of simulations run against billions of transactions.
- Intelligent algorithms receive this information, as well as your own inputs, and adjust the rules and logic that in totality govern the flow of your omnichannel operations.
AI-powered anomaly detection will not only be able to alert you to potential issues before they become critical, allowing you to take proactive measures, but the majority of the time it’ll solve the issue without needing to involve a human at all. This kind of foresight is invaluable for maintaining smooth operations and ensuring customer satisfaction.
Benefits of AI in Ecommerce Operations
AI in ecommerce operations will only continue to get better as models are fine-tined and its use cases expand. We can’t say with 100% certainty what AI order operations platforms will look like in 10 years, but we do know that continuing to invest in AI will undoubtedly reap many real-world benefits for our customers including:
- Increased Efficiency. By automating routine tasks, solving errors autonomously, and providing intelligent recommendations, AI frees up your team to focus on strategic initiatives. This leads to improved productivity and operational efficiency.
- Enhanced Decision-Making. With AI-driven insights you gain a deeper understanding of your operations, and AI spots areas for improvement you might miss. This enables you to make data-backed decisions that optimize performance and drive growth.
- Scalability. As your business grows, AI capabilities scale with you. Whether you’re handling hundreds, thousands, or millions of transactions, AI order operations platforms adapt to your needs, ensuring seamless operations at every stage.
- Reduced Errors. Automation, machine learning, and intelligent algorithms reduce the likelihood of human error, ensuring that your operations run smoothly and accurately. And if an error does occur, AI can rectify it without burdening your teams.
Pipe17’s Approach to Generative AI
At Pipe17, we’ve taken a methodical use-case driven approach to generative AI. For any groundbreaking technology, including GenAI, we believe it’s imperative to establish a rigorous level of security, compliance, trust and transparency before widely introducing that technology into our product and systems. Prior to launching Pippen—our GenAI-powered ecommerce operations virtual assistant—we spent more than a year:
- Creating GenAI Policies and Procedures. To ensure that our development, usage, and handling of data meets and exceeds enterprise-grade compliance standards
- Training GenAI Models. On our universal commerce data model, connector data models, order operations best practices, and domain expertise
- Beta Testing. Each use case our virtual GenAI assistant was designed to solve, both internally and with customers
With air-tight security, we’re then able to prioritize genAI-powered solutions that will solve problems for our customers 10X faster and easier than anything that exists today. To date, we’ve launched generative AI specifically designed to make two core use cases faster, and more intuitive.
- Configuring custom integrations. Custom integration mapping often requires significant time and technical expertise, especially if you’re using an iPaaS. Our AI-powered ecommerce operations assistant has changed the commerce connectivity game with lightning fast and non-technical custom integration configuration.
- Creating and adjusting automation rules. Setting up automation rules—like order holds and order routing—often requires complete system knowledge since there are 100s of filters and logic criteria to choose from. Now Pippen makes creating automation rules as simple as having a short conversation.
Pippen can interpret natural language commands and convert them into actionable configurations, drastically reducing the setup time and lowering the barrier to entry for non-technical users. These current AI use cases are just the beginning. Our journey started by turning once technical custom integration mappings and complex automation rules into simple conversations, and we’re not stopping there. Pipe17’s future AI capabilities will continue to make order operations more efficient and intuitive. AI is a step-level change that will empower Pipe17 customers to focus on what matters most to their core business, rather than getting bogged down in operations and technical details.
Conclusion and The Road Ahead
At Pipe17, we believe in the transformative power of AI to elevate our business, but more importantly our customers’ businesses. AI’s potential is immense, and we’re just starting to scratch the surface. We’re committed to continuous innovation, and expanding the impact and scope of our AI capabilities is one way that we’ll enable even more ecommerce businesses to streamline their omnichannel order operations. By training and integrating cutting-edge AI technologies into our platform, we’re not only helping our customers solve their problems faster, we’re also paving the way for a new era of intelligent, efficient, and scalable ecommerce operations.
Whether you’re a brand, merchant, 3PL, or part of the ecommerce SaaS ecosystem, Pipe17’s AI-powered order operations platform is designed to meet your needs and exceed your expectations. Our long-term vision is to create a fully autonomous, conversational order operations platform that anticipates your needs, adapts to your workflows, and evolves with your business. Thank you for being part of this journey and shaping the future of ecommerce operations, one AI-driven innovation at a time, with us.