5 Ways That Artificial Intelligence is Transforming the Retail Industry |
Posted: May 26, 2021 |
Artificial Intelligence can be used in the retail industry for customer satisfaction tracking, boosting customer service using chatbots, in-store assistance and price predictions, logistics and supply chain management.
In the retail industry, digital transformation has been going on for many years. This has resulted in increased efficiency, accuracy, and speed across different branches of the retail business. This is largely because of advanced predictive analytics and data systems that are helping brands to make better data-driven decisions. Most of these insights will not be possible without the use of artificial intelligence and internet of things or IoT. Artificial Intelligence has empowered retail businesses with high-level information and data that is used to improve operations and discover new business opportunities. Here are ways that Artificial Intelligence can be used in retail.
Customer Satisfaction Tracking Artificial Intelligence can help in detecting the mood of customers during their shopping process. Most retailers have introduced facial recognition systems for this function. Cameras can be installed at every checkout lane and if customers look annoyed, a store attendant can talk to him/her. With mood tracking using motion detection software, brands can build stronger relationships with their customers.
Chatbots Help with Customer Service Ai chatbots offer a greater level of customer service, enhance searching, suggest similar products, and even send notifications regarding new collections. Today, about 80% of brands around the world are already using or will be using chatbots in the near future. Companies like Burberry and Tommy Hilfiger already launched chatbots to assist clients navigate through their product collections.
Price Predictions Artificial intelligence in retail can be used in price predictions. Price forecasting involves the prediction of product prices based on characteristics, seasonal trends, demands, the release date of new models of an item, and many more. Artificial Intelligence can help customers to know how the prices of specific products will change. With a price prediction feature, retailers can build solid customer loyalty.
In-Store Assistance Retailers can invest in technologies that assist customers in the shopping process and also help the in-store staff. With AI, customers can find whatever products they are looking for in a store in different languages. In addition, face recognition software can help with inventory management owing to their real-time monitoring capabilities. With AI, retailers can provide customers will all the information they need before making a purchase.
Supply Chain Management and Logistics Every year, retailers across the globe lose about $1.1 trillion because of poor execution in the supply chain and logistics areas. However, with Artificial Intelligence out-of-stock and leftovers scenarios can be eradicated. In the retail supply chain, Artificial Intelligence can be used for restocking products by taking into account the sales history, promotions, trends, weather, and other important parameters.
We cannot dispute the immense benefits of artificial intelligence in retail today.AI has the capacity to transform every aspect of the retail business. With advanced information and data, retailers can understand their customers better and cater to their exact needs. When properly implemented, thus capital-intensive technology will offer significant results over time.
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