How Artificial Intelligence is going to be the Future of Retail Industry?

With the smart wave affecting the whole world, retailers are also not left untouched. To survive in this new technologically advanced smart world, retailers are now needed to incorporate automation and artificial intelligence to improve the customer journey. How each retailer adopts automation into his field is his personal choice based on his ultimate goal. For example, few might use AI in their shopping apps to become more responsive to the shopping patterns of an individual customer. Or few might use robots in-store to improve a customer’s shopping experience.

The retail industry had always customer data for too long but has never been able to use it efficiently. With the emergence of Artificial Intelligence, it has got a chance to put this information to good use at last.

How?

• AI gives digital systems the ability to perform tasks that normally require human intelligence, such as visual perception, speech recognition, decision-making, and translation between languages.

• These smart data systems collectively become more insightful in their ability to drive merchandising, marketing, and service decisions, which ultimately impact the relationship between retailers and consumers.

Now let’s take a deeper look at how Artificial Intelligence has helped Retail Sector -

1. AI in Marketing- By integrating AI in marketing, retail companies will create far more targeted ads that could differ from store to store. Also, with the intervention of the automated personal assistant Chatbot, a customer could receive targeted marketing campaigns when they shop.

2. AI is Driving Sales- AI system will continue the dynamic personalization service after the customer leaves the store. The various ways could include timely texts or emails, re-targeting products customers considered but did not purchase, cross-selling of products, or relevant recommendations for future online purchases or shopping trips.

3. Simulation to inspire informed Purchase- Simulation in Retail may involve contextual data to be layered with real-life moments to improve how customers visualize products and services. For example, a customer buying a centerpiece of a table for his living room might be confused about the fact that whether it would look good once it’s in his home. So, here Simulation through mixed-reality furniture shopping experience allows customers to not only select their furniture but also to ”place” it in their rooms to see how it looks. To improve on the experience, even more, an AI overlay allows the system to offer products such as paint, window treatments, or other accessories to complement the room.

4. AI in Customer Service-Online Chat-bots are the next customer service executives in the Retail Industry. They will easily answer questions and assist customers, and in-store intelligence to make the experience even more interactive. AI-imbued chat-bots can tackle volumes of customer service that retailers would require armies of employees to manage.

5. Experience-based Retail Model- Here people would visit the store not because of the products on offer but because of the experience they get. With the right usage of AI and automation, retailers would be able to create a meaningful impact in ways that interest customers and make the shopping experience more entertaining. This could be done by bringing in robots to increase footfalls or automate billing to make the checkout process easier and faster. Robots could answer basic questions, freeing customers from the discomfort of asking "too many questions".

6. AI in Inventory Management- AI-focused inventory management has evolved from a want to a need since this technology will help dealers increase the inventory accuracy from 65 percent to more than 98 percent in most cases. This could be done with the help of Robots. The robot monitors shelves and tallies out-of-stock items and those that need replenishment. These robots are also capable of detecting pricing errors.

7. AI in Inventory Management- AI-focused inventory management has evolved from a want to a need since this technology will help dealers increase the inventory accuracy from 65 percent to more than 98 percent in most cases. This could be done with the help of Robots. The robot monitors shelves and tallies out-of-stock items and those that need replenishment. These robots are also capable of detecting pricing errors.

Examples of some retailers who have already chosen to augment their retail experiences with Artificial Intelligence

• Beauty retailer Sephora created an app that allows its users to find the right shades and products simply by uploading a photograph of them. With the invention of this app, people can now buy their cosmetics without having to go through the hassle of visiting a store and waiting in line.

• Starbucks has also begun to replace staff with automated machines to make consistent drinks and reduce the time to serve customers.

• Walmart is planning to extend the tests for its shelf-scanning robots across 50 stores. The machines, which have been deemed to be the future of shelf scanning, will roam around the aisles to check all factors including pricing, misplaced items, and stock levels, to assess the level of stocks within the store.

• Amazon Go - The basic concept behind Amazon Go is that it is a new kind of store that flourishes on the concept of no checkout requirements. Consumers who walk into a store can take whatever they want without having to go through the hassle of lines and waiting for checkout. The technology automatically detects all that is being taken and keeps track of them in a virtual cart. Shortly after the consumer leaves, they will be sent a receipt and charged through their Amazon account.

• SoftBank, a Japanese-based telecommunications company – It is working to bring its retail robot Pepper to stores in the United States and has already put a few pilot Peppers in retail stores in California. Pepper’s function in most of these stores is to act either as a greeter, welcoming people as they enter the store or as a customer service representative, answering questions from shoppers, and offering directions.

Conclusion

With various advantages of Artificial Intelligence, many of us remain mistrustful and the privacy issues the technology carries.