Running head: APPLICATION OF AI 1

Application of AI
Name
Academic Institution

Author Note

Class
Professor
November 11, 2020
APPLICATION OF AI 2

Application of AI
Technology is revolutionizing people's lives and consequently transforming how business
operations are being carried out. As a result, large corporations and industries are adopting the
inventions of technology into their business. Besides, the industry of Customer service is no
exception, and the company has geared up the adoption of Artificial Intelligence in the sector to
improve client relations.
Technology is rapidly evolving, and industrial customer relations are positively affected. The rise
in competition for consumer experience has generated a massive amount of data, which has
result in a significant increase in customer expectations. According to the Gartner report, by the
end of 2020, Artificial Intelligence will manage over 80% of the customer interactions (Costello
2020). The surge is attributed to the buildup in data complexity, which prompts the inclusion of
sophisticated technologies like artificial technology to enhance customer-centric decisions. The
paper will discuss the adoption of AI in customer relations in IBM and Amazon companies to
meet specific objectives.
Strategic application of AI by Amazon in retaining prime subscribers
Describe the strategic application
Amazon has changed the bot technology. The company has explored AI to provide a voice
interface powered by the cloud called "Alexa." Alexa is a broader term for Amazon voice
services, Alexa-related App, software, digital content, and other supporting services. Alexa app
has an Amazon website or the app that enables access to Alexa, its settings, and related content
(Amazon.com Help: Alexa Terms of Use 2020). 
Alexa is only accessible via an internet connection and enabled product. In areas that its services
are not available, separate subscriptions are utilized. 
How it works; Alexa voice platform handles everything for the end-user, thus streamlining the
customer interaction process and encourages retention. The Amazon voice platform can be
triggered by the activation button, followed by the command. Alexa streams the voice and retains
it to the cloud after the interaction. The enclosed components in the cloud include audio inputs,
shopping lists, and music play, which later present improved and personalized services. The
services are delivered via auxiliary products, personalized or non-commercial software. 
Voice purchasing; The software allows consumers to voice purchase digital and physical
products, subscribe and consume other related services from Amazon. Payments are through
Amazon payment or processed purchase. The process entails the use of speaking able
confirmation code, which retrieves the ordered products and details. The app then processes the
product through a kid skill and enrolls the consent automated message from the purchaser.
Amazon subscription for Alexa starts at free trial, after which subscription follows for the next
one to two years, depending on the consumer. 
Third-party services; The use of Alexa Voice Service that utilizes AI to NLP allows consumers
to order Amazons goods in plenty through third-party integration. Third-party services enhance
the exchange of information with any services. The benefits include the ZIP code in utilizing
weather, auxiliary products, and custom music station. The technology enables the customer to
customize skills to any product manufactured by Amazon. Customers can also determine
whether to store contacts, quiz games, or play music with Alexa (Lei et al., 2017).
Objective
Improve and retain the number of Amazon Prime subscribers
Results
APPLICATION OF AI 3

The Amazon AI innovation- Alexa voice purchaser has managed to increase consumer
satisfaction, improve the company reputation, and customer return to purchase more products.
According to Consumer Intelligence Research Partners, 98% of consumers of Amazon Prime
subscribers uphold their membership after it has expired. The company has close to perfect
retention rates of consumers. Moreover, the company has over 103 million subscribers in the US
only with a prime member spending close to $1400 per year as opposed to $600 for non-prime
Amazon customers.
Case example
Domino's is taking orders for their favorite's fast food easier by employing Alexa- voice. Using
the domino skill, customers can build new orders for their favorite dishes quickly. The app has
3.9 rating star out 701 customer ratings. The process entails the use of Alexa using the Domino
tracker for US orders only. Customers are only required to ask Alexa via voice messaging to
connect them to Domino and order with no tracking time (Orr, D & Sanchez 2018). For re-
ordering services, the customer is required to have a Domino pizza profile set up at
www.domino.com. Customers can also ask Alexa Domino tracker from the time order placed
until when the order is ready for pickup. Alexa also allows consumers to place orders via its
address without linking to the Domino pizza profile. Domino delivery tracking is carried out via
phone number and the receipt of the recent order, which allows Alexa to provide the current
status of the order at any time of a day.  

Reference
Amazon.com Help: Alexa Terms of Use. (2020). Retrieved 3 May 2020,
from https://www.amazon.com/gp/help/customer/display.html?nodeId=201809740
Costello, K. (2020). Gartner Predicts the Future of AI Technologies. Retrieved 3 May
2020, from https://www.gartner.com/smarterwithgartner/gartner-predicts-the-future-of-
ai-technologies/
Lei, X., Tu, G. H., Liu, A. X., Ali, K., Li, C. Y., & Xie, T. (2017). The Insecurity of Home
Digital Voice Assistants--Amazon Alexa as a Case Study. arXiv preprint
arXiv:1712.03327.
Orr, D. A., & Sanchez, L. (2018). Alexa, did you get that? Determining the evidentiary
value of data stored by the Amazon® Echo. Digital Investigation, 24, 72-78.