Artificial Intelligence: The Retail World’s Future

  Sep 25, 2017 5:00:01 AM

With more than 3.8 billion digital users, the retail world is at the cusp of an omnichannel revolution. Artificial Intelligence (AI) has been at a prime modernization since the advent of digital and mobile technology. AI has promised to enrich various aspects of our lives through self-driving cars, smart homes, and even medical diagnosis.

AI, Big data, Machine Learning, Predictive and Forecasting are helping retailers engage with their customer in innovative ways allowing them to take significant decisions swiftly.

Retail is one such segment where AI has found instant acceptance. According to a study, 77% of UK retail directors think that AI, deep learning, and device learning implementations will have a remarkable impact on their businesses with 23% claiming they’re already seeing results.

To sustain in the retail world, following are the essentials for each retailer:

1. A.I based recommendation engine:
Through Artificial Intelligence, retailers can provide accurate and relevant product recommendations to a customer which sparks a shopper’s interest and brings conversion.

Brands possess extensive data on demographical, behavioral and historical facets of their customers. Here, AI can be used to predict their desires and wants.

AI considers factorial inputs such as weather conditions, time of the day, and day of the week to deliver right recommendations which individuals couldn’t imagine doing.

2. A.I based business decisions:
Through Artificial Intelligence Retail Assistant, business leaders can receive real time insights on the business performance, market performance, and market opportunities. They can also receive strategic suggestions that would resolve decision makers from following their gut.

Through AI, retailers and brands are taking their advertising and marketing efforts to unprecedented heights. Today, brands that aren’t already researching or employing AI could be operating with a limitation.

3. Bots:
Store assistants can only help customers in a physical store. However, through chatbots, brands can judiciously interact with their customers no matter where they are.

Today, Artificial Intelligence is being used to assist customers through their shopping journey which often comprises of various channels on the digital platform.

Brands can efficiently send in product recommendations, solve delivery issues, help locate unavailable products, and guide their customers through the various channels they operate in with the help of AI.

4. Individualism:
The concept of individualism as opposed to any external interference is becoming more popular in the Asian culture.

Brands are starting to realize that they need to build individualized experiences around each customer in order to drive engagement.

Artificial Intelligence is helping brands in analyzing available customer data in order to segment customers into various behavioral groups.

Through this exercise, they can determine the right factors that could help them deliver a positive purchase experience.

5. A.I and In-store Eye
AI helps stores in analyzing camera footages to improve their customers’ journey.

Through the analysis of visual data, retailers can determine the path a customer takes within the store. With this information, retailers can design their spaces in a way that maximizes the time spent in the store.

Retailers will know which section devours the most and least visitors, what products the customers put into their cart and what they usually place back on the shelves. The technology can be used to notify store assistants to help any customer who is stuck in a particular place within the store. This application of AI enables offline retailers to track customers through their shopping journey similar to how e-commerce retailers track online clicks.

Author: Mohit Sharma, Manager – Digital Transformation Services

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