How artificial intelligence is changing the landscape of retail
Internet shopping is becoming more and more ubiquitous as the days progress. AI has continued its infiltration of a wide array of industries and it is now retail’s turn to come under its influence.
In the 21t century, customers crave personalization, and experiences over products and services.
AI is enabling customers and retailers see eye-to-eye. AI is sending shockwaves across the value chain and is starting to be seen as a critically useful tool for retail organizations to obtain a strategic foothold over their competitors.
Analysts have predicted that global AI revenues will appreciate from $643.7 million in 2016, to a staggering $36.8 billion in 2025.
Let’s talk terms. What do you, as an organization, stand to gain from AI implementation?
Providing improved in-store experiences
AI can minimize operational expenses through automation technologies. It can facilitate contactless experiences, eliminate queues, monitor inventory in real time and digitize shop displays and trial rooms. Amazon’s Go and Kroger’s Edge technology have been able to minimize costs through replacing paper price tags with smart shelf tags.
Chatbots that enhance customer service
Interactive chatbots drive customer engagement by streamlining interactions with consumers, In addition to providing dynamic responses to customers, bots can gain insight into valuable info from your consumers, before they talk to a telemarketing executive, if needed.
The chatbots are designed to learn from their interactions with consumers and this accuracy which chatbots have when their responses have been fine tuned cannot be matched by human agents.
Flexibility of price adjustments
AI can provide critical data for directing pricing strategy. Several pricing models are meticulously dissected prior to deciding on the ideal pricing for their products.
Seasonal adaptation of pricing, competition, and consumer demand are variables through which retailers adjust their prices.
Effective supply chain management and logistics
Inadequate inventory planning is a cause for business losses the world over. AI-enhanced logistics can foresee requirements for products by analyzing historical sales trends, location, buying trends, etc.
Personalization and consumer insights
AI affords a great degree of customization and provides a tailored experience to customers. Biometric and face recognition can profile consumers and record their likes and dislikes. They can then proceed to make appropriate recommendations.
Technologically progressive AI can decode the cyber footprints of their consumers to understand their needs, wants and interests.
Intelligent product searches
AI in retail can make product discovery easy for consumers. Customers can look up the products that they want on the internet based on the images that they have of the product.
ML can synthesize data items by the millions in a matter of minutes, providing useful product statistics to consumers.
Optimizing store operations
AI in retail can enhance the work life of a retail store administrator through automation and robotics. Time savings can be redirected to other useful activities.
AI – Looking to the future
AI is all set to revolutionize retail businesses. It provides intelligent insight, and through analytics, helps organizations visualize the future. Pragmatism is the need of the hour in implementing AI. AI is a long-term investment that reaps benefits over the long run.