As retail outlets are being replaced by internet buying, AI in retail is taking center stage for businesses. The use of artificial intelligence in retail is enabling merchants to better understand their customers’ needs and expectations in an increasingly digital world. Artificial intelligence is having a significant impact on the retail value chain and is quickly becoming a valuable tool for retailers looking to get an advantage over their rivals. It has been anticipated by Tractica, a marketing research firm, that global AI revenues will rise to over $36.6 Billion in 2025.
If you’re considering implementing AI in your company, it’s important to know how other merchants have done so.
1. Improving the Shopping Experience In-Store
Retailers’ operational costs can be reduced by utilizing artificial intelligence to streamline in-store operations. It can take the position of salespeople to assist customers in the store, eliminate queues by accepting payments without a cashier, restock inventory through real-time stock monitoring, and digitally display products in stores and in trial rooms, among other things. AI is a must-have for merchants looking to save time and provide better service to their customers. Amazon has adopted a technology that responds to every pick-up of a product from a store shelf. Smart shelf tags, instead of paper price tags, have also been introduced by Kroger Edge technology in order to reduce expenses.
2. Chatbots for Customer Service Assistance
Omnichannel retail has ensured that customer connection doesn’t end in a store location. A chat program built using artificial intelligence in retail can easily increase client interaction. The use of chatbots to communicate with clients is a viable option. If necessary, they can transfer the call to a telesales representative who can provide answers to frequently asked questions, make product recommendations, deal with customer complaints, and gather useful data from your clients. The chatbots can be trained to learn from their previous encounters and use that information to improve and personalize their interactions with customers in the future. H&M’s Kik chatbot, which lets customers choose from recommendations, filters, and personal style preferences, put the clothing retailer ahead of the pack in 2016 even before the rest of the industry caught up.
3. Effective Supply Chain Management and Logistics are Necessary for the Success
Every year, retailers throughout the world lose money as a result of poor inventory management. AI-enabled logistics management can estimate demand for products by analyzing previous sales, location, purchasing tendencies, etc. Many organizations have just created AI-powered drones for warehouse management that can access hard-to-reach areas and automatically update a central database with real-time inventory availability. Retail supply chains, including inventory, staffing, distribution, and delivery can be fully automated using artificial intelligence.
4. Personalization and Understanding of the Client Base
Customers may enjoy a more personalized shopping experience thanks to AI technologies in retail. These technologies, such as biometric and face recognition, are able to recognize retaining clients and retain their preferences. Accordingly, they can recommend products and design promotional materials for them. Using advanced artificial intelligence algorithms, it is possible to decipher customers’ preferences by looking at their demographic information, social media impressions, and digital footprints online. Boston Consulting Group research found that “Brands who develop tailored experiences by combining advanced digital technology and proprietary data for customers are seeing revenue increase by 6% to 10% – two to three times quicker than those who do not.”
5. Prices can be Adjusted Depending on Market Conditions
A price-sensitive business like retail can benefit from the use of artificial intelligence solutions. Many different pricing models can be compared using these programs, and then the best price for a product can be determined. Seasonal fluctuations, competing items, and customer demand can all influence how much retailers charge. If we take into account the long-term revenue it will bring in, it is a worthwhile investment.
6. Intuitive Product Searches are Sixth
Automated product discovery is another benefit of AI in retail. It’s now easier than ever for customers to take a picture of a product they want and then use the picture to look for a merchant selling the thing on the web. As a result of machine learning retail software, buyers can search for and compare products more quickly and easily than ever before.
7. Improving the Efficiency of Retail Operations
The operation of retail stores has become more difficult due to the proliferation of multichannel retail. In a warehouse, store personnel must take care of several different duties. It’s no longer enough for them to just receive things, store them, and keep track of inventories. They are responsible for providing product information, tracking promotional offers, and merchandising. Automating back-office tasks and employing robots to do quality checks are two ways in which AI in retail can help a store manager’s work be done more efficiently. The saved time can be put to better use in the warehouse, saving a significant amount of time.
Artificial Intelligence As the Future
AI has the potential to revolutionize retail enterprises in every way. It replaces intuition with intelligence and provides retailers with a long-term perspective on the market. When it comes to deploying AI, business executives must take a realistic approach. They must realize that this is a high-risk, high-reward investment that will pay off in the long run. To be successful with AI, a business must have a long-term goal in mind. Small projects should be the starting point, and subsequently larger ones should be geared toward developing long-term AI capabilities.
Are you a Start-Up or an SMB in the retail sector and want to leverage AI for your business returns? Contact Us.
