Retailers are ai in retail ai in all sorts of ways to connect with their customers, transform data into insights and intelligence, and automate processes. These ai in retail applications range from customer service to product supply management.
AI analytics tools are particularly effective at delivering prescriptive analytics, or analyses that make recommendations for how to adjust business tactics in the future based on current data. They can be used to find the best price point for a new product, for example. They can also be used to identify trends in customer purchases or analyze the data from sales of specific products to better anticipate demand.
The AI Revolution: Transforming Retail with Smart Technology
One of the fastest-growing ai in retail categories is recommendation AI, which uses algorithms to understand customer behavior on an individual basis. These algorithms can draw on a variety of data sources, including a person’s browsing or purchase history and ad engagement. In this way, AI can recommend items that a person may not have otherwise considered purchasing. It can even help a person discover a combination of items they are likely to buy together, such as shoes and a purse.
Another ai in retail application is AI-powered robotics, which can be used to scan and update inventory in stores; shift goods from warehouse to storefront or vice versa; drive delivery vehicles and drones; or physically interact with customers in stores. This can help retailers cut costs and achieve greater flexibility in their supply chains. It can also reduce the number of human touch points that need to be managed, allowing employees to focus on higher value tasks and providing customers with a more personalized experience.