The use of artificial intelligence in retail is nothing new. The implementation of new technologies helps in the fight for customers and facilitates shopping. AI enables fast data analysis, which helps retail companies achieve the best results. And what’s more, it opens up many opportunities to optimize almost every aspect of any retail business. In this article, we will look at the benefits AI is bringing to the retail industry.
How important is AI in retail?
Artificial intelligence is gaining more and more popularity in retail. It is estimated that by 2028 AI in the retail market will reach $24.1 billion.
Stores want to stand out, gain an advantage over the competition, and sell as much as possible. This industry generates huge amounts of data, and AI can process it to the benefit of retailers. It enables retail companies to achieve better results and make better business decisions.
Benefits of AI in retail
INCREASED SUPPLY CHAIN EFFICIENCY
Mistakes in supply chain management and logistics are very common, causing retailers to lose huge amounts of money. Artificial intelligence helps optimize the supply chain. It enables:
- Calculating the demand for a specific product
- Finding optimal delivery routes for drivers
- Forecasting trends
- Task automation
- Timely delivery
In addition, robots help in picking, but also in packing orders, thanks to which employees can focus on other tasks.
SHOPS WITHOUT THE CASHIERS
Shops without cash registers and cashiers? Is it possible? With the implementation of AI, stores no longer need to hire cashiers. AI systems record what products you take from the shelf. Then, when you leave the store, the price of your products is deducted from your account.
Amazon is one of the first users of this technology. You will be able to pay for purchases using an application connected to a payment card or account. You can enter the store by scanning the QR code in the application. With cameras and sensors, the system checks what goods your customers take off the shelf and put in the basket. When leaving, they also need to scan the QR code that activates the front door. The receipt for purchases is in digital form, and the customer receives it by e-mail.
There are several benefits of cashier-free stores:
- Reduction of queues
- Lower operating expenses
- Reduced number of human workers.
Cashier-free stores don’t mean that people are getting sloppy. They still have to oversee the AI processes.
PREDICTING THE PRICE
Artificial intelligence can help predict product prices. And this, in turn, will help increase sales. AI analyzes such parameters as demand, seasonality, prices of other products, and sales results. Using this information, it develops various pricing strategies. The seller, on the other hand, tests them and chooses the best one.
VIRTUAL FITTING ROOMS
Companies that sell footwear, clothing, or accessories can benefit greatly from this technology. Virtual fitting rooms allow customers to try on thousands of clothes without changing clothes. How it’s working? The virtual kiosk scans the consumer’s body and recommends products that will best suit him. This technology saves the customer’s effort and time, increasing their shopping satisfaction.
OPTIMIZED PRODUCT PLACEMENT
By analyzing historical data (consumer preferences, weather conditions, sales season, etc.), AI algorithms can determine the best place to store products. Thanks to this, customers will easily find the products they are interested in. What’s more, they are more likely to return to such a store.
With AI, retailers can install shelves that control the number of products placed on them and report the need for replenishment. In addition, by using AI, sellers can replace paper tags with smart prices. As a consequence, consumers do not have to ask staff for additional information about the product they are interested in. Moreover, if consumers shop abroad, they can look up this information in their native language. The smart half is a convenience for retailers and consumers.
IMPROVED CUSTOMER EXPERIENCE
Seeing the above benefits of AI in retail, we can see that this technology can help companies provide the best customer service. Shorter shopping times, virtual fitting rooms, personalization, and smart shelves all improve customer satisfaction. Retailers can cater their shopping experiences to almost any customer based on their preferences. In addition, by personalizing products and services, retail companies can reduce complaints.
As you can see, the retail industry is benefiting greatly from the implementation of AI. AI-based solutions can
- Support supply chain management
- Increase customer satisfaction
- Replace cashiers
- Predict prices
Integrate your retail business with AI and enjoy better sales results. AI consultants from Addepto are available to share their knowledge and assist you in creating the right solution.