Shopify is worried about the dangers that artificial intelligence (AI) poses to the fast-paced e-commerce and logistics industry. These systems are powerful. This technology can manage stock, fulfill orders, write product descriptions, and even send emails or provide customer service.
What’s not to love about making the entire supply chain system faster and more efficient? But wait—that’s where Shopify is pulling the brakes and urging sellers to take one step back and learn to be safe in these spaces.
While it is stepping up productivity levels, there are risks that sellers and entrepreneurs must be aware of.
Leaving AI to run your operations all by itself can get you in hot water. According to Shopify, AI bias can discriminate against customers and workers. Nascent AI technology can present an alignment problem with your business.
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AI brings heightened risks
AI systems in logistics and e-commerce thrive on data. However, a heavy reliance on data can lead to heightened risk.
This sector deals heavily with personal customer data, inventory records, and transaction details, which are gold mines for cybercriminals.
In November 2023, port operator DP World (DPW) was hacked and had to be shut down for a few days. It’s one of Australia’s largest port terminal operators in Melbourne, Sydney, Brisbane, and Fremantle. It had a massive impact on logistics.
Can AI be biased?
Shopify warns sellers that AI systems can inadvertently reinforce biases or make decisions that conflict with customers’ brand values.
That’s why it’s essential to conduct regular AI algorithm audits. This will help ensure ethical standards. Combining technology with human oversight is best to protect the brand and avoid customer dissatisfaction.
Maintaining human oversight
Human oversight over AI technologies in e-commerce and logistic operations is essential. Shopify warns its customers that an over-reliance on AI can lead to decisions that lack understanding of complex human factors.
The line between technological advancement and ethical responsibility will blur as artificial intelligence evolves.
The challenge for business owners will be ensuring AI’s power while mitigating the risks involved.
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About the author
Mia is a multi-award-winning journalist. She has more than 14 years of experience in mainstream media. She's covered many historic moments that happened in Africa and internationally. She has a strong focus on human interest stories, to bring her readers and viewers closer to the topics at hand.
