If you're interested in what's new in the eCommerce industry and what information is worth paying attention to, then you've come to the right place! In the latest edition of our Press Release, we thoroughly analyse the changes that have taken place in the world of eCommerce over the past few weeks. You'll read about the shopping preferences of young customers and the progress of the e-grocery industry in Poland. You'll also examine regulations regarding the use of artificial intelligence in Europe and the USA. Want to know more? Just spend 5 minutes reading this edition of Advox Press Release!
Who will introduce better regulations regarding AI?
With the continuous development of artificial intelligence (AI), discussions about the need for comprehensive regulation of this technology by law are ongoing. Creating exhaustive yet innovation-friendly regulations is crucial to mitigate the risks associated with the negative use of AI (e.g., for fraud or social manipulation). Currently, the United States and the European Union are grappling with establishing safety standards in this regard, presenting different approaches to regulation. What characterises each of them?
AI & the United States
US authorities are taking various actions to create a safe and conducive environment for artificial intelligence. There are already standards in place regarding the use of AI by BigTech companies. Additionally, the US Senate is working on legislation to prevent the spread of fake materials, such as images and videos created using deep fake technology.
However, the US has also engaged scientists, programmers, and practitioners (fintech companies, banks, or corporations) in the process of regulation. This has led to the creation of the US AI Safety Institute Consortium, which will oversee the development of AI products and services. This approach will develop a position that takes into account the needs and expectations of all stakeholders, from the government to the private sector.
Read more about the consortium's activities here.
AI & the European Union
Intensive efforts are underway to comprehensively regulate artificial intelligence in the European Union. The priority is to develop and approve the final version of the AI Act, which will establish standards for the use of artificial intelligence in Europe. These regulations are based on the classification of AI tools according to risk levels, ranging from low to unacceptable (e.g., categorising society using AI algorithms).
As reports suggest, the AI Act is expected to be approved by the European Parliament by the end of February 2024. The next step will be the approval of the regulations by the EU Council. Although there will be a few more months before the law comes into effect, companies utilising artificial intelligence should start preparing to comply with the guidelines now.
You can read more about the AI Act here. How do you assess the shape of the regulations proposed by both - USA and EU?
Biedronka store competes with rivals - this time in the online space
Poles are increasingly opting for online grocery shopping (e-grocery), mainly using platforms for quick deliveries such as Frisco or Lisek.app. Popular discount stores, like Biedronka, also recognize the growing importance of this trend. For some time now, the chain has been offering the option to order its products through the Glovo app. In mid-February 2024, the store decided to take a step further towards digitalization by introducing its own platform for grocery products (previously, only industrial and decorative items could be ordered).
Although the store's offering and available promotions do not significantly differ from those available in physical stores, the zakupy.biedronka.pl platform faces certain limitations. What are they? Currently, the option to place orders is only available in Warsaw, with the shortest delivery time being 2 hours. Additionally, there is a minimum value requirement for the shopping basket (PLN 249), which must be reached for the order to be fulfilled. Therefore, it can be said that Biedronka's platform is currently in the testing phase. However, it is worth following its development as it may set new standards for online grocery shopping.
Do you think this type of shopping is the future? You can find more information about the development of e-grocery in Poland here.
Young people set standards for online businesses
It is becoming increasingly bold to say that the younger generation no longer remembers the days before the Internet. For them, online reality is not just an add-on, but a permanent part of life. It is therefore not surprising that they expect a different approach to creating digital experiences, including when shopping online.
Members of Generation Z represent as much as 40% of the global population - a significant customer group whose needs must be addressed. Future Mind conducted an analysis of the behaviors and expectations of young Poles (aged 15 to 35) related to the use of technology in everyday life. According to the "Młodzi vs Mobile" report, most young people use their phones for about 2-5 hours a day, and over one-third say they wouldn't last without a smartphone for more than half a day.
So what do young people pay attention to when browsing the internet?
- Phygital experiences - young Poles eagerly combine online shopping with visits to physical stores. As much as 78% of them use their phones during shopping in physical stores (e.g., to check product availability in different sizes using the store's app or to read reviews and ratings).
- Ideas and values- regardless of their income and social status, young people pay particular attention to the values conveyed by a brand.
- Data protection - interestingly, young people are less willing to share their personal data in exchange for benefits (e.g., shopping discounts). Nearly 30% of them would not agree to share their data (e.g., phone number, email address) in exchange for a discount.
- Usability- young people expect stores and apps to be free of technical issues. It is also important for them to be able to compare products, remember user preferences, and adapt to their needs.
- Mobile apps - over half of young people use apps on their smartphones only when necessary or in response to an impulse (e.g., in response to a notification about a promotion).
Are you sure your brand can meet the expectations of young customers? You can find the full Future Mind report here.
