Bay Area Business Lawyers | Primum Law

Navigating the Promise and Pitfalls of AI-driven Technology in E-commerce

Lately, we’ve been delving into the remarkable growth of e-commerce, not only in terms of its expansion as a vertical market but also in the evolution of technologies enriching the online shopping experience. Among these technological advancements, Artificial Intelligence (AI) stands out as a transformative force. Allow me to illustrate this with an intriguing example.

Recently, I stumbled upon a startup that offers virtual salesperson services tailored for e-commerce platforms. Picture this: AI-driven avatars seamlessly engage with customers, assisting them in making informed purchasing decisions. It’s undeniably impressive, isn’t it? The potential benefits for e-stores are vast; leveraging such technology could undoubtedly enhance the overall shopping experience for consumers.

However, let’s shift our focus to the potential drawbacks of this innovative technology. Consider this: in order to develop these avatars to effectively sell your products, they must be trained using your business’s data. Essentially, as a business owner, you’re required to provide valuable insights into your operations to facilitate the avatar’s training process. Furthermore, as the avatars continue to interact and learn from customers, they evolve over time.

But what happens if you decide to discontinue the service? What becomes of the avatar, and more importantly, what about the data you’ve provided to train it? Ideally, in such scenarios, the data and any intellectual property developed using it should remain your property, or at the very least, be licensed exclusively to you.

Before signing any agreements, it’s imperative to carefully consider the following factors:

  • Data ownership and privacy;
  • Dependance and transition;
  • Intellectual property rights;
  • Cost and ROI;
  • Security and Trust.

While the allure of AI-driven avatars for virtual sales assistance is undeniable, it’s essential to weigh the benefits against the potential risks and ensure that your business’s interests are adequately protected. So, next time you’re presented with such an opportunity, take a moment to ponder if you should consult the lawyer before making the business decision.

Scroll to Top