Artificial intelligence is here to disrupt industries. We are ready. Are you?

Artificial Intelligence technologies and capabilities are driving digital transformation, growth, and opportunity in nearly every sector.

Retail

 

Over the last few years, artificial intelligence technology has made some interesting advancements across multiple industries. While it may not be so obvious to the end consumers, artificial intelligence has been applied in the retail sector as well.

50%

49%

46%

44%

of respondents use AI for driving sales and anticipating demand

of respondents named cost savings as biggest benefit of AI for retail business

of respondents use AI for understanding consumer behavior

of respondents increased their productivity by using AI for retail business

3 WAYS TO CHANGE RETAIL BUSINESS BY APPLYING ARTIFICIAL INTELLIGENCE

Communication

Artificial intelligence platforms allow retailers to leverage behavioral economics and reach customers with an individual approach. Retailers are using AI to communicate with shoppers through personalized online experiences, conversational robots and chatbots and voice shopping. Apart from scrolling through social media and gathering feedback left by customers, artificial intelligence can detect the actual mood of your customers in the store.

Optimisation of Pricing

Companies have vast amounts of pricing data and sophisticated pricing applications that enable them to rapidly respond to changes in competitors’ pricing and consumer demand, but traditional retailers haven’t historically had the same tools. Artificial intelligence can show retailers likely outcomes of different pricing strategies so they can come up with the best promotional offers, acquire more customers, and increase sales. To do this, algorithms typically collect data on competitors’ products, promotions, and sales as well as non-store data about things like local events.

Rationalization of Inventory

AI-powered retail applications not only identify gaps, forecast inventory and place orders, but also help reduce excess stock buildup, making retail more efficient. Excess stock often ends up being marked down, but AI applications can help identify products that are prone to be stocked in excess based on their historical tendencies, and prevent them from building up.

It’s clear that AI has taken the retail industry by storm. Retailers who embrace the technology—building it into to their business or partnering with providers with proven expertise—are better able to serve their customers and ultimately their bottom lines.

Our advice to retailers taking their first steps with AI: Data is king. Start by collecting, validating and updating all available customer data.

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