Lets go through how AI (Artificial Intelligence) and ML (Machine Learning) are changing the Retail Industry.
The retail industry is data-driven and Artificial Intelligence(AI) and Machine Learning (ML) have been a long-player in the industry. Although the traditional analytics models were taking care of retail for decades, AI/ML has brought high-level data processing computing leading to deeper insights! AI and ML are transforming the retail sector with real-world applications and use-cases with real business worth. The AI-global market in the retail business is expected to reach more than $5 million by the year 2022. Let’s see how AI/ML is transforming the retail industry globally:
Take the example of Amazon GO. The retail giant wants to start more shops driven by AI-powered check-out free stores. Human staff members are reduced and robotization of stores, just Walk Out kind of shopping technology is increasingly picking pace the world over. Cashier-free stores are a striking example of transformation in retail.
Customer service is undergoing a big revamp with AI-ML-powered Chatbots that are helping in delivering seamless customer service. Chatbots are available 24*7 for attending to customers living anywhere in the world. Be it for the in-store retail shops or e-commerce retail stores, both the segments in retail are gaining massively out of this digital technology. B2B or B2C, advanced AI-ML-NLP chatbots are even making recommendations to retail customers leading to satisfying business outcomes.
The in-store staff gets help from AI-ML-powered robots who can talk in multiple languages. They are helping in-store customers in the shopping process, in inventory management with massive real-time monitoring capabilities. Paper price tags are being replaced by smart-shelf tags.
AI/ML-enabled predictive analytics can help forecast Price, make price predictions based on characteristics, demand, varied seasonal trends, etc. Customers can anticipate how a certain product price might change in the future, via an AI-ML-based app service. This way the digital technology is helping retail stores in demand forecasting, build customer loyalty. Moreover, AI helps monitor inventory levels as well as competitors’ prices and then makes appropriate comparisons of demands to calculate the prices of the products. This leads to making a better pricing decision.
AI/ML-powered Predictive Analytics suggest companies in market segmentation like which product is suitable for which market, etc. Thus, it helps in product categorization also. This way the technology is maximizing your retail company’s current value and your future revenue as well.
Retail companies like Levi’s, Old Navy, Brooks Brothers, and many more are utilizing the massive AI capability of the Magic Mirror. AI-based virtual fitting rooms, the magnificent application are helping generate more sales and ultimate customer satisfaction. The AI-based scanner can scan your body statistics in 20 seconds measuring 200000 points of your body! Isn’t it magical? The power of Magic Mirror.This way you are saving your time to try outfits in a physical trial room.
AI/ML helping curb the losses in this area, eliminating the scenarios like leftovers and product out of stock thing which is a result of poor planning and execution in this segment.AI/ML now helps in restocking in the supply chain of retail, calculating a particular product’s demand and sales history, trends, promotions, location, weather, and other parameters, all this helps in stock-forecasting. This leads to better decision making and replenishment becomes an easier and no-loss process. Even AI is helping in route optimization for the logistics in retail.
Conclusion
Artificial Intelligence (AI), Machine Learning (ML) enabled solutions are transforming the retail sector to a greater level. Digital technologies are helping to stay focussed, stay relevant, and ahead in the competitive market. AI/ML-based predictive analytics and better insights help in improving customer engagement. This way, increased revenue and better business returns are making your retail business grow immensely!
Want to leverage the immense capabilities of AI/ML to improve & grow your retail business? Contact our experts today!
