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It’s no secret that AI has revolutionized the retail industry. Since its inception, it has transformed nearly every sector of the industry. AI is getting better every day, increasing the potential for growth for any AI-powered business. Decades ago, AI was a dream, now a reality. In a few years, retail that hasn’t jumped on the AI bandwagon will likely be part of history.
Whether you’re talking about customer service, strategy, security, marketing, or any other part of your business, AI has revolutionized the way you do business.
However, this post will focus on how AI has reshaped the retail market. We will also discuss the rise of AI, what it is, why businesses are rapidly adopting this amazing technology, how it will change customer standards, and the future of this technology. So without further ado, let’s take a closer look at these topics.
Rise of AI
AI stands for artificial intelligence. Going back in history, the fathers of this technology, Minsky and McCarthy, predicted how artificial intelligence would change the world. The news swept the entire industry. According to them, AI was trying to replace human intelligence with machine intelligence.
A modern definition of AI describes the ability of a machine (either the computer itself or a robot controlled by a computer) to perform functions previously possible only with human intelligence.
Once the development of AI began, the world witnessed innovation every day. Today the dream has become a reality. When Apple Siri tells a user to buy something, or looks at a self-driving car, AI is evolving before our eyes.
Over the past decade, every industry has undergone a revolutionary change. Examples include the widespread use of robots in manufacturing and the advancement of healthcare using artificial intelligence. All of these breakthrough innovations are made possible thanks to AI.
Why retailers are turning to AI
As mentioned earlier, AI has changed nearly every industry, including retail. This is why it has become essential in the retail industry. From online giants like Amazon to offline giants like Walmart and Target, retailers are turning to AI. Here’s why:
1. Reliable
When it comes to reliability, nothing beats AI machines. They are much more reliable and efficient than humans. Needless to say, if they have to work 24/7, they will do it. Unlike humans, these machines don’t need time to eat, sleep, or even do yoga.
With these machines, businesses no longer have to deal with breaks and sick leave, and they are far more reliable than humans. It can also process data in seconds, taking on tasks that would take humans years to accomplish.
2. AI has improved customer service for years
AI has dramatically changed customer service over the years. Customer care in this day and age is the marketing backbone of any business. Retail executives are so aware of the paramount importance of customer care that they are choosing AI over human intelligence.
Bots can handle chats, phone calls, and emails without a break. They have sophisticated vocabularies developed through years of linguistic data. Their helpful assistance builds trust, which earns customer loyalty to the business. Some modern ad targeting software uses AI to more effectively identify target audiences.
3. Boost your productivity
Experts suggest that AI will act as an employee’s lieutenant. When AI is present, employees can share their workload with bots and focus on their tasks. This can increase productivity and show better performance results.
Best examples of using AI in retail
AI is ubiquitous in today’s retail industry. Here are some examples of retailers that are effectively leveraging AI in their business functions:
- Sephora uses AI to recommend makeup. Popular makeup brand Sephora uses AI to recommend makeup to customers. For some women, finding the right makeup for their skin type and complexion can be difficult: Color IQ scans their face and recommends foundation and concealer accordingly. LipIQ is also part of ColorIQ technology that scans your lips and suggests the right lip color.
- LOWES uses LoweBots to find items. Finding products in stores can be a daunting task for customers. This is where LoweBot comes to the rescue. In LOWES stores, these bots walk around and give instructions to customers. They will keep asking you what you are trying to find and will help you based on your answer.
- North Face Suggests Courts to Customers — North Face uses AI to suggest courts to customers. Customers simply provide event details to the bot and it finds the perfect coat for that event.
- Walmart uses AI to monitor inventory — Walmart was one of the earliest retailers to employ AI for in-store inventory management. Sophisticated bots scan every aisle to check inventory levels.Send notifications to store warehouses to replenish inventory as needed
How AI is setting new consumer standards
AI will play a key role in setting new consumer trends and standards. Consumers no longer have to struggle to find products. In the past, consumers often had to go through a dilemma to find what they were looking for.
AI now tracks previous searches and recommends products even if customers didn’t ask for them. Customers no longer need to see unwanted ads, so it’s just a nail in the coffin.AI-fetched ads are more relevant, so they’re less intrusive and more engaging for your customers. .
Social media users are also experiencing the magic of AI. How often do you see your products on social media platforms when you search for them on Google? Almost every time. These targeted ads recommend what consumers actually want. If many consumers like a product, it becomes a new trend.
AI can also identify consumer behavior toward a particular product, helping businesses determine whether the product sells.
The future of AI in retail
The future of AI in retail is definitely bright. Although so many benefits have already been proven, the technology is still in its infancy. We are the first generation to see the magic of AI. In fact, AI is just getting started, but it will reach its full potential in the next 10 or 20 years.
It’s early days, but many retailers are benefiting from it. They are now formulating strategies based on consumer behavior. As AI continues to evolve, we can expect it to automate more aspects of the retail industry over the next few years.
Featured image credits: Author provided. pexel; thank you!
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