It’s not hard to see how AI has transformed the retail sector. Since its inception, AI has revolutionized almost every industry sector. Each day AI is improved, increasing the likelihood of every AI-enabled business growing. AI was a vision a few decades back. Within a few years, any retail company that doesn’t get on board the AI train will be just another part of history.
AI has revolutionized commerce, regardless of which sector it is.
The post will however focus on the impact of AI on the retail industry. We’ll also be discussing AI’s rise, its purpose, the reasons businesses are rapidly adopting this amazing technology, how AI affects customer standards, and the future of this technology. These are the topics we’ll be discussing.
AI stands for artificial intelligence. Looking back at history, Minsky and McCarthy were the first to predict how artificial intelligence would transform the world. This news swept the entire industry. According to them, AI was set to replace human intelligence by machine intelligence.
AI can be defined as the ability to allow a machine (which could be either a computer or a robotic controller controlled by a processor) to perform tasks that are impossible with human intelligence.
The world saw innovations every day as AI began to develop. Today, this dream has become a reality. AI is evolving right before our eyes when Apple Siri directs users to buy something or shows us a self-driving car.
Over the past decade, all industries have seen major changes. Exemples include the use of robots in manufacturing and the advancement of healthcare through artificial intelligence. AI was the key to these amazing innovations.
Retail businesses are switching to AI because of these reasons
AI, as we have already mentioned, has transformed almost every industry including retail. This is why AI has become an indispensable part of the retail industry. Retail businesses are turning towards AI to compete with online giants Amazon and offline rivals Walmart, Target, and Target. Here’s why:
1. It is Reliable
AI machines can be trusted for reliability. They are much more reliable and efficient that humans. They will work around the clock, it goes without saying. They don’t require eating, sleeping, or even yoga, which is something that humans can’t do.
With these machines, businesses don’t need to worry about sick days and work breaks. They can also process large amounts of data in seconds, which allows them to do tasks that take human beings hours.
2. AI has improved customer service over the years
AI has made customer service much more efficient over the years. Customer service is the foundation of any business’s marketing strategy. Retail business owners understand the critical importance of customer care and so are choosing AI over humans intelligence.
Bots can manage chats, phone conversations, and emails all day without any breaks. Their sophisticated vocabulary is the result of years of language data. Their valuable assistance builds trust and loyalty which in turn increases customers’ loyalty. A lot of ad targeting software uses AI to pinpoint the right audience more accurately.
3. It enhances productivity
Experts recommend that AI acts as an aide to employees. AI is a tool that allows employees to collaborate with bots, allowing them the freedom to concentrate on their own tasks. This helps employees become more productive and delivers better results.
The Best Retail Uses for AI
AI is an integral part of today’s retail industry. These are some examples of retailers who make efficient use of AI to run their businesses.
Sephora uses AI for Makeup Recommendations Sephora uses AI for makeup recommendations. Finding the perfect makeup for your skin can be difficult. ColorIQ scans a person’s face and recommends concealers or foundations. ColorIQ also has LipIQ. This technology scans your lips and recommends a color that suits you.
LOWES uses LoweBots in order to locate items. It can be difficult for customers to find the right item in a store. LoweBots can help with this task. These bots can be found in LOWES stores and will give customers directions. They will continue asking questions about what you are trying to find, and then they will help you based upon the answers that you provide.
North Face suggests coats for customers — North Face uses AI in order to recommend coats for its customers. The bot will only need to know the details of the event so it can suggest the best coat for you.
Walmart Implements AI to Manage Inventory — Walmart is among the first retailers to adopt AI for inventory management. The advanced bots scan all aisles to check inventory levels. They notify the store’s warehouse when inventory is low to replenish it.
New Consumer Standards: How AI is Setting New Standards
AI plays a crucial role in setting new consumer standards and trends. The internet has made it easy for consumers to find the products they are looking for. In the past, consumers had to navigate a lot of difficulties to find what they needed.
AI tracks customers’ previous searches and recommends products to them even though they have not asked for them. The customer doesn’t need to see these unwanted ads anymore. This just nails it. Because AI-fetched advertisements are more relevant, customers find them more engaging than irritating.
AI is also being used by social media users. How often have you seen a product displayed on a social networking platform, when you had just searched for it on Google. Nearly every time. These targeted ads show consumers what they really want. If the product is popular, it becomes a new trend.
AI helps companies identify the consumer behaviour towards a specific product, and help them decide if it will be a success.
AI in Retail: The Future of AI
AI in retail has a bright future. The technology is still in its infancy, despite the numerous benefits it has already shown. The first generation to benefit from the power of AI is us. AI has only just begun, but AI’s full potential will be revealed in the next decade.
Retail companies are beginning to reap the rewards of the internet, even in its early days. Now, they base their strategies on consumer behavior. AI continues to evolve, but we can expect it will automate more aspects in the retail industry over the coming years.