What are the Benefits of AI in the Retail Industry?

By: Retail CIO Outlook | Tuesday, June 09, 2020

Digital transformation has been going on for years in the retail industry and has increased its speed, efficiency, and accuracy in every branch of the retail business.

Fremont, CA: Advanced data and predictive analytics systems are helping companies to make data-driven decisions in the retail sector. AI in retail has provided businesses with high-level data and information that is leveraged into better retail operations and new business opportunities. It is forecasted that 85 percent of enterprises will be leveraging AI by 2020 to stay competitive in the retail business. AI analytical capability can be utilized t convert raw data collected from the IoT and other sources into actionable insights. It also uses behavioral analytics and customer intelligence to glean valuable insights about various market demographics and better different touchpoints in the customer service sector.

Apart from the business intelligence and sheer speed that these technologies provide, the digital transformation in retail is setting successful businesses apart from unsuccessful ones. Several benefits AI in retail can provide.

1. Create Insights from Disparate Data – Retail is flooded with information from all aspects of the business from supply chain to store to consumers. Retailers need to filter through the noise to transform these disparate data sources into a consumer-first strategy.

2. Create Exciting Experience – To keep the customer's interest intact, retailers need to think out of the box, differentiate their products, and offer consumers compelling service and experiences. With the help of integrating predictive analytics, retailers can gather more market insight, which will help them lead with innovation rather than react to change.

3. Captivate Customers – Retail being a very competitive market, they must focus on providing shoppers with immersive shopping experiences. The traditional retailers need to engage customers in a personalized and relevant manner that is different and inspiring across all touchpoints.

4. Synchronize Offline & Online Retail – Although digital and physical shopping channels operate under a different set of approaches, treating these channels as distinct business units add conflict for customers seeking a seamless shopping experience and results in operational inefficiencies.