Retail CIO Outlook Weekly Brief
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FREMONT, CA: One of the many challenges the retail sector faces is to maintain the attention of consumers who have various digital apparatuses at their disposal to search for the best deals and most suitable delivery options available. Big box retailers have already started incorporating Artificial Intellegince into their operations and logistics.
AI not only crunches a massive quantity of data from different sources but also identifies patterns and opportunities for technological solutions. The use of AI in retail can be implemented across multiple business areas like:
Streamline Inventory Management:
Inventory management can be a tedious chore, which can cause mistakes or a bad customer experience, which can eventually cause an irreversible dent to a retailer’s brand value. AI can act as a consultant in this place by combing through data of sales, weather, and location. By going through data patterns, AI can recognize products prone to damage or be under-stocked.
Bad Customer Service:
Multichannel operators are beginning to understand that customers have more purchasing capability when they are produced with more options. Many retailers have already started using AI to provide customizations to their consumers. Beauty retailers have begun deploying smart mirrors with AI and AR in their stores to allow customers to seek beauty products without waiting for the staff.
Sub Optimal Pricing:
Online retailers have successfully incorporated changes in consumer demand by examining pricing data in advanced applications. However, big-box retailers have not explored this prospect yet to its fullest. AI can help retailers by generating diverse pricing models. Gradually, retailers will realize the significance of an AI-driven dynamic pricing strategy and how it can be put to use as a competitive advantage.
Inventory Shrinkage:
According to the National Retail Federation (NRF), retailers lose about $50 billion annually to shrinkage (breakage, theft, and accounting errors). ML systems can reduce this decline by scanning through huge datasets to figure out the discrepancies in POS systems. AI-driven experience makes technology undetectable to the end customer. As AI begins to become a chief quality in retail stores, the lines between physical and digital will start to blur.
| Newmine |
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