mage titans usa 2016 - allan macgregor - personalized ecommerce with machine learning

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Page 1: Mage Titans USA 2016 - Allan MacGregor - Personalized ecommerce with Machine learning
Page 2: Mage Titans USA 2016 - Allan MacGregor - Personalized ecommerce with Machine learning

Director of Engineering Allan MacGregor

! @allanmacgregor

" amacgregor

Page 3: Mage Titans USA 2016 - Allan MacGregor - Personalized ecommerce with Machine learning

w i k i p e d i a . c o m“Machine learning is a type of artificial

intelligence (AI) that provides computers with the ability to learn without being

explicitly programmed.

What is Machine Learning?

Page 4: Mage Titans USA 2016 - Allan MacGregor - Personalized ecommerce with Machine learning

w i k i p e d i a . c o m“Machine learning is a type of artificial

intelligence (AI) that provides computers with the ability to learn without being

explicitly programmed.

Page 5: Mage Titans USA 2016 - Allan MacGregor - Personalized ecommerce with Machine learning

w i k i p e d i a . c o m“Machine learning is a type of artificial

intelligence (AI) that provides computers with the ability to learn without being

explicitly programmed.

MACHINE LEARNING

ARTICIFIAL INTELLIGENCEDEEP LEARNINGSMART COMMERCE

CONVERSATIONALPERSONALIZATION

BIG DATABOTS INTELLIGENT ASSISTANTSRNN NATURAL LANGUAGE PROCESSING

Page 6: Mage Titans USA 2016 - Allan MacGregor - Personalized ecommerce with Machine learning

1974–1980

1987–1993

LIMITED COMPUTER POWERINTRACTABILITY COMBINATORIAL EXPLOSION

MORAVEC'S PARADOXEND OF FUNDING

REASONING

COLLAPSE OF THE LISP MARKETLACK OF TRUSTFALL OF THE EXPERT SYSTEMS

Page 7: Mage Titans USA 2016 - Allan MacGregor - Personalized ecommerce with Machine learning

w i k i p e d i a . c o m“Machine learning is a type of artificial

intelligence (AI) that provides computers with the ability to learn without being

explicitly programmed.

2015 - US$ 126 Bn

AI MARKET VALUE

TO

2024 - US$ 3.1 Trillion

Source: Artificial Intelligence Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2016 - 2024

Page 8: Mage Titans USA 2016 - Allan MacGregor - Personalized ecommerce with Machine learning

w i k i p e d i a . c o m“Machine learning is a type of artificial

intelligence (AI) that provides computers with the ability to learn without being

explicitly programmed.

Why Machine Learning?

Page 9: Mage Titans USA 2016 - Allan MacGregor - Personalized ecommerce with Machine learning

COGNITIVE SECURITY

FRAUD DETECTIONINTELLIGENT SEARCH

SMART COMMERCE

COGNITIVE COMMERCEPERSONALIZATION

SEGMENTATION

CONVERSATIONAL AGENTSNATURAL SEARCH PRICING INTELLIGENCE

TRACK

Page 10: Mage Titans USA 2016 - Allan MacGregor - Personalized ecommerce with Machine learning

w i k i p e d i a . c o m“Machine learning is a type of artificial

intelligence (AI) that provides computers with the ability to learn without being

explicitly programmed.

Machine Learning Digital Commerce+

Page 11: Mage Titans USA 2016 - Allan MacGregor - Personalized ecommerce with Machine learning

w i k i p e d i a . c o m“Machine learning is a type of artificial

intelligence (AI) that provides computers with the ability to learn without being

explicitly programmed.

Product RecommendationsUPSELL, CROSSELL & RELATED PRODUCTS

Page 12: Mage Titans USA 2016 - Allan MacGregor - Personalized ecommerce with Machine learning

[Product Recommendations]

Page 13: Mage Titans USA 2016 - Allan MacGregor - Personalized ecommerce with Machine learning

w i k i p e d i a . c o m“Machine learning is a type of artificial

intelligence (AI) that provides computers with the ability to learn without being

explicitly programmed.+

Page 14: Mage Titans USA 2016 - Allan MacGregor - Personalized ecommerce with Machine learning

• Machine learning templates • Deploy ML engines as service • Easy to use without requiring tons of

background knowledge • Open Source

Page 15: Mage Titans USA 2016 - Allan MacGregor - Personalized ecommerce with Machine learning

w i k i p e d i a . c o m“Machine learning is a type of artificial

intelligence (AI) that provides computers with the ability to learn without being

explicitly programmed.

SEARCHSOLR, ELASTICH SEARCH AND WHAT’S NEXT

Page 16: Mage Titans USA 2016 - Allan MacGregor - Personalized ecommerce with Machine learning

30% of customers that visit a store will use

the search

SEARCH

50% higher conversion rate for search

compared to the rest of the site

Page 17: Mage Titans USA 2016 - Allan MacGregor - Personalized ecommerce with Machine learning

w i k i p e d i a . c o m“Machine learning is a type of artificial

intelligence (AI) that provides computers with the ability to learn without being

explicitly programmed.+

SEARCH

Page 18: Mage Titans USA 2016 - Allan MacGregor - Personalized ecommerce with Machine learning

Challenge: Search Accuracy

SEARCH

Page 19: Mage Titans USA 2016 - Allan MacGregor - Personalized ecommerce with Machine learning

Whipper Snipper

SEARCH

Page 20: Mage Titans USA 2016 - Allan MacGregor - Personalized ecommerce with Machine learning

•Whipper Snipper •Weed Trimmer •Weed Eater •Weed Wacker •Grass Trimmer

SEARCH

Page 21: Mage Titans USA 2016 - Allan MacGregor - Personalized ecommerce with Machine learning

SEARCH + NLP

SEARCH

Making Search Understand Human

Page 22: Mage Titans USA 2016 - Allan MacGregor - Personalized ecommerce with Machine learning

SEARCH

Page 23: Mage Titans USA 2016 - Allan MacGregor - Personalized ecommerce with Machine learning

KLEVU Features:

SEARCH

• Self-learning • Query Filtering • Inflection understanding

Page 24: Mage Titans USA 2016 - Allan MacGregor - Personalized ecommerce with Machine learning

SEARCH

What Machine Learning Wants

Page 25: Mage Titans USA 2016 - Allan MacGregor - Personalized ecommerce with Machine learning

Machine Learning / AI Will NOT:

•Take over the human race•Kill all humans

Page 26: Mage Titans USA 2016 - Allan MacGregor - Personalized ecommerce with Machine learning

COGNITIVE SECURITY

FRAUD DETECTION

PRICE INTELLIGENCE

ANTICIPATORY SHIPPING

CONTENT PERSONALIZATION

Page 27: Mage Titans USA 2016 - Allan MacGregor - Personalized ecommerce with Machine learning

FRAUD DETECTION

Page 28: Mage Titans USA 2016 - Allan MacGregor - Personalized ecommerce with Machine learning

ANTICIPATORY SHIPPING

Page 29: Mage Titans USA 2016 - Allan MacGregor - Personalized ecommerce with Machine learning

PRICE INTELLIGENCE

Page 30: Mage Titans USA 2016 - Allan MacGregor - Personalized ecommerce with Machine learning

COGNITIVE SECURITY

Page 31: Mage Titans USA 2016 - Allan MacGregor - Personalized ecommerce with Machine learning

COGNITIVE SECURITY+DEMAC MEDIA

750 Million logs per month

40+ Servers across North America

Page 32: Mage Titans USA 2016 - Allan MacGregor - Personalized ecommerce with Machine learning

COGNITIVE SECURITY

Page 33: Mage Titans USA 2016 - Allan MacGregor - Personalized ecommerce with Machine learning

CONTENT PERSONALIZATION

PERSONALIZATON

Page 34: Mage Titans USA 2016 - Allan MacGregor - Personalized ecommerce with Machine learning

PERSONALIZATON

THE PRODUCT CATALOG

Page 35: Mage Titans USA 2016 - Allan MacGregor - Personalized ecommerce with Machine learning
Page 36: Mage Titans USA 2016 - Allan MacGregor - Personalized ecommerce with Machine learning
Page 37: Mage Titans USA 2016 - Allan MacGregor - Personalized ecommerce with Machine learning
Page 38: Mage Titans USA 2016 - Allan MacGregor - Personalized ecommerce with Machine learning
Page 39: Mage Titans USA 2016 - Allan MacGregor - Personalized ecommerce with Machine learning

SHOWING THE SAME INFORMATION TO EVERYONE IS A

MISSED OPPORTUNITY

PERSONALIZATON

Page 40: Mage Titans USA 2016 - Allan MacGregor - Personalized ecommerce with Machine learning

PERSONALIZATON

CONVERSATION COMMERCE

TO

?????????

Page 41: Mage Titans USA 2016 - Allan MacGregor - Personalized ecommerce with Machine learning

PERSONALIZATON

ONLINE APPAREL

30% average return rate

3% average conversion rate

Page 42: Mage Titans USA 2016 - Allan MacGregor - Personalized ecommerce with Machine learning
Page 43: Mage Titans USA 2016 - Allan MacGregor - Personalized ecommerce with Machine learning
Page 44: Mage Titans USA 2016 - Allan MacGregor - Personalized ecommerce with Machine learning

PERSONALIZATON

Page 45: Mage Titans USA 2016 - Allan MacGregor - Personalized ecommerce with Machine learning

PERSONALIZATON

SMARTER DIGITAL COMMERCE

Page 46: Mage Titans USA 2016 - Allan MacGregor - Personalized ecommerce with Machine learning

PERSONALIZATON

SMARTER TOOLS FOR MERCHANTS

Page 47: Mage Titans USA 2016 - Allan MacGregor - Personalized ecommerce with Machine learning

NEXT

NEXT STEPS

Page 48: Mage Titans USA 2016 - Allan MacGregor - Personalized ecommerce with Machine learning

NEXT

Page 49: Mage Titans USA 2016 - Allan MacGregor - Personalized ecommerce with Machine learning

Questions

QUESTIONS ?