AI Delivering Enhanced User Experience With Personalised Recommendation Engines

AI Delivering Enhanced User Experience With Personalised Recommendation Engines

Ever wondered how Netflix can figure out exactly what’s on your mind when it comes to what you might want to watch next. Or how Spotify curates those perfect for all moods kinda playlists. According to a McKinsey study, 35 percent of what customers buy on Amazon and 75 percent of what they watch on Netflix is based on recommendations from Recommendation Engines. Well, if this is not the first time you’re reading something related to big data or artificial intelligence, then you have a slight idea of what the answer might boil down to. Yes, artificial intelligence it is. Making use of unstructured and structured datasets to provide systemized conclusions in the form of replication of human intelligence by machinery is all that confides in this umbrella term called artificial intelligence. Recommendation engines put the data made available by you to practice and thus provide you with the highly personalized product or information recommendations, eventually, leading to the addition of a tailored touch by the platform in understanding the needs of their audience or consumer. 


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‚ÄúThe market for recommendation engines was worth USD 2.12 billion in 2020, and it is predicted to grow to USD 15.13 billion by 2026, with a CAGR of 37.46 percent between 2021 and 2026.‚Ä̬†


Recommendation Engine Market ‚Äď Growth, Trends, Covid-19 Impact, and Forecasts (2021-2026), an industry report by Mordor Intelligence.


What are Recommendation Engines?


Simply put, recommendation engines are data filtering technologies that use a variety of algorithms and data to suggest the most relevant goods to a certain client. It begins by capturing a customer’s prior behavior and then offers products that the customers are likely to purchase based on that information. The integrated software context that analyses available data to provide recommendations for something (products/services) that a website user might be interested in, among other things. E-commerce, social media, and content-based websites, all use recommendation engine systems. The use of recommendation engines to develop product suggestion chatbots is also gaining momentum in the IT industry. Recommendations AI is changing the way people perceive and experience brands by redefining predictive analytics.


You can learn more about building a recommendation engine in this blog post: A guide to constructing a recommendation system that helps in knowledge discovery


The recommendation engines also have a variety of types, and given below are some machine learning recommendation systems that bring in conversions for businesses 

  1. Collaborative Filtering
    Mapping user history to provide product or service recommendations.

  2. Content-Based Filtering
    Recommendations made based on similar attributes in the form of keywords picked up from the product descriptions and other features.

  3. Hybrid Recommendation Systems
    A combination of diverse rating and sorting algorithms employed to tailor recommendations.

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AI in Recommendation Systems


A good recommendation system must be able to correlate not just product but also customer, inventory, logistical, and social sentiment data in order to provide relevant recommendations in real-time. Algorithms are used by recommendation engines to offer those service or product recommendations to the customers. These engines have begun to employ machine learning techniques that improve the accuracy of the item prediction process. The algorithms adapt based on the data collected from recommendation systems, and collaborative filtering, content-based filtering, or a combination of both these methods as a hybrid approach is used.

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The rise of AI solution engines has been aided by the rise of personalization and relevance in marketing. Such cognitive computing technologies can significantly improve the quality of the recommendations. Improved user experience, higher customer satisfaction, increased click-through rate, more conversions and income, and higher customer retention are some other business benefits of partnering with an AI development company and installing a recommendation engine. 


Business Impact of Recommendation Engines


Leading businesses acknowledge the value of researching their audience’s interests, demographics, and spending habits in the fiercely competitive and ever-evolving industries. The capacity to efficiently use all the available bits of information to provide better service to the client and, cross-sell and up-sell can definitely provide a considerable benefit. Enterprises could now acquire huge volumes of geolocation data thanks to technological advancements. The concern is to efficiently analyze this data and combine it with existing customer information in order to improve the success of marketing initiatives in near-real-time and provide convenient and appropriate services and incentives for greater ROI.

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To learn how a recommendation engine makes life easier for both businesses and customers, click here.

How Algoscale can help?


Deliver curated suggestions to consumers anywhere in the world with minimal latency. 

With our dedicated team of experts at Algoscale, we help you recognize, anticipate, and satisfy clients’ expectations using an AI-based recommendation engine, giving them a better experience.

Learn more about our offerings here.

Connect with us.

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