Applications of AI in the Retail Industry

How to use AI in the retail industry

In the past few years, the growth of AI in the retail industry has skyrocketed. As various e-commerce and mobile startups have disrupted the industry, it is crucial for a business to implement new technologies in order to increase sales while adding value to their brand. Artificial Intelligence offers businesses a unique opportunity to develop unequaled efficiency in production, sales, and consumer experience. As companies are encouraged to adopt such emerging technologies and digital strategies, investments in AI are expected to exceed $8 billion by 2024. Therefore, in order to avoid digital disruption, it is important to be a market leader in adopting AI applications.

Here are a couple of ways which AI can be applied to the retail industry

Virtual clothing databases and fitting rooms

Through AI technology, clothing retailers are able to streamline a consumer’s clothes search through the use of a virtual database. Current applications allow consumers to take a picture of a certain article of clothing which they like and AI will match the picture with the exact item in your company’s inventory. This application eliminates frustration and makes the shopping experience extremely efficient. Customers are also able to independently search through the database at the store which will further ease the difficulty in finding an exact item. In the near future, Ai will enable consumers to virtually try on clothes in the database in order to gauge if their clothes will fit or not. Such an application could save customers hours of trying on clothes until they find the perfect fit.

Robotic Assistance

Using AI, advanced analytics, and natural language processing, digital robotics will further ease a consumers shopping experience. These robots will enable customers to receive instant support in order to locate products, determine prices and answer basic questions about specific items. Advanced robots can even detect when a customer is getting upset and will be able to direct human assistance to him/her. The use of AI-powered robots benefits the consumer experience as they allow customers to more efficiently navigate stores and identify items.

Furthermore, AI allows some robots to move between each aisle and scan for missing and misplaced goods. Robots are also able to work as cashiers and facilitate orders which were bought online with the intent to pick up in store. These applications reduce manpower costs and improve efficiency by completing simple yet important tasks.

Behavioral Advanced Analytics

AI algorithms are able to capture customer preferences and behavior while shopping in store. Through utilizing customer preferences data, stores are able to stock their stores with more popular clothes based on each location. This could eliminate unused inventory as less desirable items are able to be swapped with more popular trends. Furthermore, through the utilization of customer in-store behavior, companies can design their stores to be more conducive to customer shopping tendencies. A well-designed store with strategic product placement will help drive sales and increase customer satisfaction.

Mobile Chatbot Applications

Chatbots powered by Artifical Intelligence are allowing companies to interact with their customers in an efficient and meaningful way. On mobile apps, Chatbots interact with customers to understand their preferences and shopping goals. Then, the chatbot will locate and provide directions to items in the store which may interest the consumer. Furthermore, mobile chatbots can be configured to further provide customer support on a wide range of questions about the company, store and specific products. Chatbots are also able to remember consumer preferences which will further ease the experience of consumers who frequently shop at the same store.

Conclusion

Artificial Intelligence offers valuable solutions to an array of current business problems. Through the application of AI capabilities, businesses are able to improve customer experience, reduce costs and drive revenue. As the retail landscape continues to digitally transform, it is important to implement cutting-edge technologies such as AI in order to maintain a competitive advantage.

Interested in A&A’s Artificial Intelligence solutions for your company? Contact info@aa-limited.com