Retail Roots to Dig Deep into AI in 2020

By: Retail CIO Outlook | Monday, October 12, 2020

AI in Retail promises benefits such as speed, improved planning, scalability, automated procedures, and elimination of major errors. Some of the most promising uses of AI and its integration into the retail industry are discussed in the article

FREMONT, CA: Artificial Intelligence (AI) is becoming the most promising technological advancement that is disrupting several industries in the business world. One of the sectors under the AI umbrella is retail. The industry is yet to experience the full capabilities of this newest tool. Mainly because the AI software is quite expensive to design, purchase, maintain, and deploy. A small number of businesses in retail have integrated the technology with their systems and have justified its costs. Some retail establishments feel skeptical of change and are ignorant of the use cases that AI presents in the field. Now, looking towards 2020, the industry deals with the new AI tools to check how it can be applied to draw profit. Some of the major benefits of the new AI tools in retail that can bring back the ROI are discussed in this article:

1. The most common benefits of Artificial Intelligence in retail are machine learning capabilities. The AI algorithms provide large quantities of data sets, which are used to analyze and create a model. This model is then put to use for solving newer problems making it seem like human learning from experience.

2. AI in retail has the capabilities of studying sales records, customer data, and market information. The approach that is derived from this process gives retailers the power to discover trends in the market and customer purchasing behavior quickly. The projections obtained from AI can be utilized to predict future trends. These projections are made considering several factors, such as the state of inventory, consumer feedback, and sales trends. Equipped with this in-depth knowledge, retailers can make quick and intelligent decisions that will lead to a higher rate of productivity, minimizes wastage, a higher success rate of campaigns along with improved scalability.

3. AI systems can learn to man help desks, freeing up workforce for other essential tasks, while boosting customer experience by providing all round the clock support. It can manage contact information, send congratulatory messages, and update the preferences of the customer to improve the overall experience and satisfaction.

4. 2020 will also experience improved data management, analysis, and planning. AI has the potential to execute advanced analytical tasks seamlessly, enabling the extraction of private information from data sets. Creative solutions are availed by designing advanced models with AI, suggesting areas, and approaches for improvement.

5. AI systems facilitate smart communications and data transfer modes, schedules data downloads and uploads, all while providing key analytics on market and business factors. AI systems can help retailers analyze the processes in business and employee productivity.

6. AI in retail has the potential to optimize the design of inventory and space usage. It can be used to design retail shelves by considering the account expiration date, color scheme, and consumer preferences. This will enable the retailers to maximize sales, attract customers, and eliminate the wastage of space.