Retailers are not unfamiliar with predictive modeling, however, Devin Wenig, eBay’s (NASDAQ: EBAY) CEO says that predictive modeling has become important in the last year.
Speaking at the Code Conference in Rancho Palos Verdes, Calif., Wenig said that the combination of computing power and the sophistication of algorithms has changed predictive modeling in the last year. Not surprisingly, the e-commerce giant is focusing on it.
With the help of artificial intelligence, eBay wants to change the way it targets and serves its customers. According to Wenig, it is all about consumer relevance. Because of sophisticated technology, user preferences can now be predicted. Wenig notes that because of this, shoppers will see recommendations while browsing that are pretty good.
eBay, though, has much bigger plans. These plans are expected to materialize later in the year. Wenig noted at the Code Conference that the company has gotten really serious about artificial intelligence in the last year. One reason it is crucial for eBay is the breadth of the company’s inventory, according to Wenig.
When asked at the conference about the future of eBay, Wenig said eBay wants to move beyond the World Wide Web to sell its goods.
eBay shares approached the close on Friday at $24.00 U.S., 25 cents lower than Thursday's close, within a 52-week trading range of $21.51 to $66.73 U.S.
