These Are The Game-Changing Benefits of Artificial Intelligence for Retailers?

How Artificial Intelligence (AI) Can Help Retail? | Will AI Change the Game for Retailers?

Undoubtedly the retail industry is one of the early adopters of artificial intelligence. In fact, they need it essentially as competition is skyrocketing and consumers are more attracted towards online offers.

A few days back, when we decided to widen its AI service portfolio, it went into a deep research across industry verticals where it could get opportunities to solve current industry challenges through its cutting-edge AI services and solutions. According to its study, the retail industry has been the front-runner in adopting AI solutions, in the form of chatbot, personal shopping assistant, AI-driven shopping concierge and more.

Let’s discuss how AI can transform retail:

• Optimized Staff
• Store FootPrint Optimization
• Product Mix Optimization
• Optimization of Supply Chain
• Personal Shopping Assistants

 

5 ways in which AI changes our lives:

1. Optimized Staff:

   Poor staff can result in reduced sales and a damaged brand image that results from the poor customer experience they deliver. Predictive modeling with the ability to access historical data like footfalls, customer interactions, and approaches shown towards customers can help optimize staff. The optimized staff can help to achieve higher sales, deliver a better customer experience and enable higher customer retention rate.

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2. Store Foot Print Optimization:

   The decision needed to take on where to open a new store or whether should it be opened or not is a common challenge for retailers to measure the viability of their expansion planning. AI powered algorithms are being used to find out what can be the best location for launching a new store. Smart algorithms can analyze historical data like demographics, the local market, distance from competitors, nearby events, and current data like weather patterns to check the viability of the store in the desired location.

3. Product Mix Optimization:

   Sometimes, environmental changes benefit or badly impact retail business. For example, reduced winter can cause loss on the excessive stocks or extended winter can offer benefits in the same case. Advanced AI algorithms that could correlate environmental variables with product mix can help you maintain the right inventory and create better in-store offers.

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4. Optimization of Supply Chain:

   One of the most important areas that directly impact the performance of any retail operation is supply chain management. As said above, excess inventory causes a cost burden and stockouts can lead customers to attract rivals. Prescriptive demand models can help you eliminate this pain point. Prescriptive demand models that take into account past sales for different products, events, marketing campaigns, and seasonality etc. can predict accurate demand and supply forecasting. They can help optimize logistics and enable effective utilization of operational funds.

5. Personal Shopping Assistants:

   Personal shopping assistants can be much quicker and more accurate when it comes to assisting shoppers. The fashion retailer North Face uses a platform and bot that holds conversations with people online to help them find preferred products. Sephoras Chabot and the personal shopping assistant launched by app Spring are other known examples in this area. When required to develop such apps, large companies always prefer the best mobile app development company or chatbot development company in the region.

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Automatic image recognition:

Ai can explain visuals such as photos on social media to the visually impaired, thus helping them to improve their browsing experience.

To learn more about the technology, you can use Microsoft’s CaptionBot. There’s a section called “Magic behind Captionbot.ai,” and it explains that three machine learning-powered technologies are at play:

• Computer vision API
• Emotion API
• Bing Image API

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Benefits of Artificial Intelligence Marketing

According to the duke CMO survey, most businesses plan to increase their investment in analytics by over 11% of their overall marketing budgets.

• Smarter Ads
• Smarter Searches
• Right Messaging and Right Channel
• Integration with Bots
• Adapting Technology

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Artificial Intelligence (AI) significantly helps retail businesses by analyzing vast amounts of customer data to provide personalized shopping experiences, optimize inventory management through demand forecasting, improve pricing strategies, streamline supply chains, enhance customer service, and ultimately increase sales and profitability by making data-driven decisions across various aspects of retail operations.

Key ways in which AI benefits retail:

• Personalized Shopping Experiences: AI algorithms can analyze customer purchase history, browsing behavior, and preferences, deliver appropriate product recommendations, targeted marketing campaigns, and customized promotions, increasing customer satisfaction.
• Demand Forecasting: By analyzing historical sales data, market trends, and external factors such as weather, AI can predict future demand with high accuracy, helping retailers optimize inventory levels and avoid stockouts or overstocking.
• Optimized Product Placement: AI can analyze customer data to determine the best product placement in physical stores, increasing visibility and sales potential.
• Price Optimization: AI can dynamically adjust prices based on real-time demand, competitor pricing, and market conditions, increasing revenue.
• Advanced Supply Chain Management: AI can analyze logistics data to optimize delivery routes, predict potential disruptions, and improve overall supply chain efficiency.
• Enhanced Customer Service: Chatbots powered by AI can provide immediate customer support, answer questions, and resolve issues effectively, improving the customer experience.
• Fraud Detection: AI can identify suspicious patterns in transactions to detect and prevent fraudulent activity.
• Visual Search: AI enables customers to search for products using images, making shopping more convenient.
• Store Operations Optimization: AI can analyze data from store cameras to monitor customer traffic, optimize staffing levels, and identify potential areas for improvement.

Conclusion:

AI is evolving at a rapid rate and promising to deliver tangible benefits for retailers. According to industry experts, AI is expected to change the face of the retail irrevocably throughout the retail value chain. So forward-thinking retailers have enormous opportunities to leverage artificial intelligence to achieve a first-mover advantage. As a result, there is an increased demand for artificial intelligence companies and mobile app development companies who develop chatbots. If you want to learn more about AI you can enroll our artificial intelligence course, where you will learn complete details about artificial intelligence. Apart from AI, Digital marketing training, SEO Training will also provide Power BI Training, Blockchain Online training Course, Machine Learning training Course and Data Science Course.