Over 40% of global industries are currently using artificial intelligence to enhance the way they do business. In this regard, retail is no different. Whether customers are aware of it or not, the retailers they purchase everything from laptops to baby food from are being completely transformed by AI.
Though some are hesitant in integrating AI-driven technology into their business, many pioneers such as Amazon have proven that AI has huge potential in optimizing retail. Additionally, as more companies integrate AI into various aspects of their businesses, the technology is becoming more accessible for retailers of all sizes. For both in-store and online, artificial intelligence can play a huge role in enhancing and changing the way retail works. Let’s take a deeper look into how AI is currently re-shaping the retail industry as we know it.
Artificial intelligence can collect and analyze data related to customer behavior, such as purchase history. This data can then be used by retailers to enhance their stores, both online and brick and mortar, to better suit consumers and their unique needs. There are several existing examples of AI being used for better customer experience, such as Amazon’s suggested purchase engine.
However, this is only the tip of the iceberg in terms of what AI can offer retailers to improve their customer relations. Everything from personalized advertisements based on facial recognition in-store, to friendly bots helping customers find the items they’re looking for online is being tested by retailers worldwide in an attempt to make shopping at their stores simpler, faster, and more personalized. Whether customers are aware of it or not, AI is already working behind the scenes with them and their data to change how they shop, and we can only expect to see more AI-powered customer service in the future.
Considering the massive amounts of data that can be processed using artificial intelligence, it is no surprise that the internal workings of the retail industry can be improved as well. Using historical and real-time sales and pricing data, AI can run simulations and make very accurate predictions for businesses and offer them price recommendations for their products for a myriad of circumstances. Considering how fast-paced the retail market is, this can be a godsend for retailers seeking to increase their profit margins wherever possible.
Many companies such as Walmart already use complex in-house systems powered by AI so they can utilize dynamic pricing and change prices according to market conditions. But as AI becomes more accessible, external software providers are also offering affordable AI-driven price optimization to retailers of all sizes. Using pricing software, not only can retailers boost their revenue, but they can also maintain their brand image more effectively by offering the “right” prices at all times.
AI is everywhere. For retailers, artificial intelligence has huge potential in optimizing the way that they conduct their business. Though AI-powered software has already been tested and proven to enhance several aspects of retail, we really have only begun to scratch the surface in terms of utilizing AI to its fullest extent. Whether customers are receiving better service from retailers that is more tailored to their personal wants and needs, or companies are offering the best prices based on highly-accurate forecasting of the market, you can be sure that artificial intelligence is behind it all.
Who knows what the future may bring for retailers in regards to AI and its usage within their companies. With its impressive data processing rate and ability to forecast market conditions as well as customer behavior impeccably, the possibilities for AI to improve the way we shop are endless. One thing is for sure, however; AI has found its way into retail, and has changed the industry as we know it.