The retail industry has made some significant digital transformations in recent years with trends such as ‘Empowered Consumer’, ‘Agile Supply Chain’ and the rise of ‘Experiential Retail’. These changes have seen an increase in accuracy, speed and efficiency. Companies are also able to make data-driven business decisions using the implementation of advanced and predictive data analytics systems and AI.
AI is being used to improve the entire process of the product and service cycle. From manufacturing, customer recommendations and payment services to sales, CRM applications and logistics.
Here we look at some of the use cases and trends for AI in Retail, as well as navigating you towards some of the technologies leading the way.
How is AI Used in Retail
AI Powered Retail Analytics
Retail organisations especially those with omni-channel operations have lots of different data sources such as orders, supplier, market, customer, store, promotion and product data. This often equals billions of rows of data and billions of combinations of potential questions that could be asked at any given time. This makes it almost impossible for a human to really make sense of all this data. AI is now being used to answer not only known questions, but also questions humans wouldn’t think to ask, uncovering insights, trends and anomalies etc.
AI is also being used to determine what customers want based on social media behaviour, demographic data and purchase patterns through data analytics & AI.
Here are some technology companies leading the way with AI Powered Retail Analytics;
AI technologies, such as chat bots, are being used to improve engagements and customer service in the retail industry. Interactive chat programs use AI and machine learning to direct customers to solutions and answer common questions.
Here are some technology companies leading the way with Conversational Chatbots;
Using biometric recognition, intelligent retail spaces can recognise shoppers and adapt accordingly.
AI interfaces can now recognise a shoppers emotions, mindset or reactions. This is done through interpreting facial, audio and biometric cues. In turn, appropriate products, recommendations and support can be provided. This creates a completely personalised and enhanced shopping experience.
Reducing theft can also be achieved through facial recognition. Research shows, 40% of identified shoplifters will return within 30 days, and 20% of those return more than four times in 30 days. Loss prevention teams are using biometric surveillance technology that is used to reduce up to 20% of store theft.
Here are some technology companies leading the way with Biometric Recognition;
AI Driven Inventory Management
AI uses insights from competitor, marketplace and consumer data to create better demand forecasting. AI can forecast industry shifts which aids with pricing, supply chain and promotional planning. Additionally retail industries can make more informed decisions on marketing, business strategies and merchandising.
Here are some technology companies leading the way with AI Driven Inventory Management;
Is AI the Future of Retail
Not only does AI provide business intelligence, efficiency and speed but as the digital transformation continues it will determine which retailers are successful. Already, retailers who provide a personalised experience by integrating AI, are seeing their revenue increase from 6% to 10%.
Not only is there financial gain to be made but it’s also a great way to captivate customers with an exciting experience, helping to differentiate your brand. AI also allows you to make business decisions with confidence as it transforms disparate data sources into consumer-first insights. Introduce a seamless shopping experience with synchronized offline and online retail and empower flexible logistics networks.
Here at Geniusly we appreciate how daunting Artificial intelligence can seem, especially when considering implementing it into your retail business. Therefore we’re here to help you get started on your journey to a more efficient, productive and business driven workplace.
Geniusly connects people who need tech, with people who know tech to help them find the right solution for their requirements. Our industry specific advisors will save you weeks of research and avoid costly mistakes. In just a short call, our experts will understand your requirements, narrow down your search and make the necessary introductions. Best of all it’s free.