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AI vs. Manual: The Future of Product Categorization

Comparing traditional manual methods with AI-powered solutions for organizing your product catalog.

November 2, 20242 min readBy AI Insights
AVM

The Old Way: Manual Categorization

For years, businesses relied on human teams to manually assign products to categories. This often involved:

  • Spreadsheets and rule lists.
  • Subject matter experts making judgment calls.
  • Significant time investment, especially for large or frequently changing catalogs.
  • Inconsistencies due to human error or differing interpretations.

While manual effort allows for nuanced understanding, it struggles to scale effectively and maintain consistency.

The New Way: AI-Powered Matching

Artificial intelligence, particularly Natural Language Processing (NLP), has revolutionized product categorization. AI models can:

  • Understand Context: Analyze product titles and descriptions to grasp the product's essence.
  • Learn Patterns: Identify relationships between product attributes and category structures.
  • Process at Scale: Categorize thousands of products far faster than human teams.
  • Maintain Consistency: Apply the same logic across the entire catalog, reducing subjective errors.
  • Adapt: Learn from feedback and adapt to evolving taxonomies.

Placeholder image comparing a spreadsheet to an AI interface

Why AI Wins for Most Businesses

  • Speed & Efficiency: AI dramatically reduces the time and cost associated with categorization.
  • Scalability: Easily handles catalogs of any size, from hundreds to millions of products.
  • Accuracy & Consistency: Reduces human error and ensures uniform application of category rules.
  • Adaptability: Can be retrained or fine-tuned for new product types or taxonomy changes.

While human oversight might still be valuable for quality control or highly ambiguous products, AI provides a powerful foundation for modern product categorization. Tools like Taxonomy Matcher bring this power to businesses of all sizes.

AI

AI Insights

Content Writer at Taxonomy Matcher

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