Artificial intelligence is being deployed in new ways across the entire service-cycle of the product in the retail market—from assembling to post-sale customer service interaction. Many AI applications have achieved increased ROI, and some have unmet customer expectations. Many AI-enabled applications have become a part of daily lives which are Siri, Cortana, and Alexa. Admittedly, these applications are not used regularly used, but they have become common.
The deployment of advanced analytics and AI in many businesses has become a trend, irrespective of the type of industry. This has enabled companies to function more smartly and securely. AI is bringing drastic changes in the global market. Apart from e-tailers, offline retailers are also using AI application to create product catalogs and to provide exclusive product information.
Predictive analytics analyzes and applies statistical data, empowering the retailers with predictive insights through the surveillance using an artificial intelligence application. AI-powered analytics help brings out more creative ideas. This helps retailers in making better pricing decisions, improving inventory, supply chain efficiency, and detecting fraud ahead of time.
Chatbots are a boon to businesses to supplement human customer service and to increase their revenue by increasing sales. AI-enabled chatbots learn the customers’ behaviors. This is the fastest adopted AI solution which enables speedy interactions in real time. Advanced chatbots make use of machine learning tools to generate more authentic and personalized user experience. These reduce robotic responses and consider local language, context, and previous conversations or interactions before answering. Several businesses from around the world are today leveraging chatbots as an active customer touch-point.
PayPal has leveraged fraud detection algorithms with the help of security detection system to protect its customers’ digital transactions. A study from LexisNexis stated that PayPal’s deep-learning approach transaction security has reduced fraud rate to 0.32 percent of revenue. AI applications having the highest likelihood of broader retail adoption have the highest ROI.
With the emergence of AI and predictive analytics, the barrier between buyer and seller has disappeared in the retail industry. As a catalyst, chatbots have improved customer satisfaction, inventory, and supply chain efficiency. According to Harris Interactive’s customer experience impact report, 60 percent of consumers pay more for a better service. This is a testimony proving that personalized customer experience should be the topmost priority for retailers and that they need to invest more in AI and predictive analytics to better service their customers and improve their ROI.