The economics of algorithms: the risk that impacts outcomes

E-commerce in Brazil is no longer the same. Today, it is not enough to have good logistics or invest in marketing. There is a less visible gear that directly influences the results: the algorithms.

While many companies still look only at sales and market share, it is these systems that define, in a few seconds, which products appear to the customer, which ones gain prominence and which lose space.

In practice, the performance of a business no longer depends only on the product. It increasingly passes by the way data is interpreted by these platforms.And that is where a risk arises that is not always perceived in time.

Ignoring the operation of these systems can have consequences in the medium term.

The first is the loss of visibility.When a company does not understand or adapt to the rules of the platforms, it simply lets appear.It is not just about selling less, but becoming irrelevant to the consumer.

Pricing and recommendations change all the time, often without clarity about why.When results do not come, identifying the cause becomes a challenge.

There is also an increasing reliance on large platforms. Data and public attention are concentrated on a few players, which makes the scenario more vulnerable. A change in these structures can directly affect the performance of a business overnight.

Therefore, artificial intelligence needs to be part of the strategy, and not be restricted to the technical area.

This involves frequently reviewing the algorithms used, ensuring that automated decisions, such as pricing and recommendation, are aligned with business objectives.It also involves defining clear criteria for the use of data, with attention to ethics and impacts on the customer.

In addition, developing a data-driven culture is essential. It is not necessary for executives to know how to program, but it is essential that they know how to interpret information and question results.

The algorithm-driven economy is already part of reality.The difference is in how each company positions itself.It is possible to use these systems strategically or just react to what they determine.

Technology tends to gain even more space in e-commerce, but the final decision remains human.

*Airan Jr. is an AI First specialist and member of the AI Council of the Brazilian Association of Artificial Intelligence and E-commerce (ABIACOM), an entity that brings together representatives of virtual stores and service providers in the areas of technology, media and means of payment (E-mail:abiacom@nbpress.co.uk.