GK Software’s decision to buy artificial intelligence specialist Prudsys is promising for the future of AI innovators that are looking to exit.
GK Software is a large Germany-listed provider of retail software. The smaller Prudsys specialises in artificial intelligence applications in online commerce, already supplying this service to over 200 companies in its native Germany. GK Software said it wanted to buy Prudsys in order to boost its own offerings in the areas of artificial intelligence, cloud technologies and data mining.
Specifically, the Prudsys technology will help online retailer customers provide customised recommendations. “We are enabling retailers to recommend products to their consumers based on their personal behaviors at every touch point,” Michael Jaszczyk, CEO of GK Software, said to MarTech Today.
“Personalisation based on AI was, up to now, a technology limited to one channel. Now, GK Software makes personalisation truly omnichannel, both offline and online ,”said Jaszczyk, adding that previously, companies could not make accurate recommendations because they were unable to compile and analyse data from multiple channels – a mobile purchase wouldn’t be reflected at the till, for example.
Omnichannel marketing rose to prominence 15 years ago and has yet to truly live up to its promises. But as marketing technology (martech) is increasingly making a name for itself, it looks like the time for this idea might have come.
This has created opportunity for innovative software providers who understand where this area is heading, as the online shopping environment is still far from ideal for browsing. Being able to present customers with items they may like has proven a successful route for the likes of Amazon, which has proved just how powerful it can be to have a giant selection – but at the same time being able to narrow it down to present the customer with just a few items which there’s a genuine chance they will like.
We think we’ll see more deals like Prudsys in the year to come, as retail software experts realise they have to embrace AI if they’re to remain relevant as online shopping finds its feet.