How is AI revolutionising the retail industry?
These days AI is involved in most industries and the retail industry is no different. Already adopted by some retailers, over a quarter of retailers were deploying AI in 2018, investments in this new technology will continue to increase by 2022. It’s estimated that retailers will spend $7.3 billion on AI by 2022 against $2 billion in 2018. This massive increase in investment will see a very large growth in this market in the coming years.
With the capacity of collecting, analysing data and applying statistical data modelling, AI can simplify, improve and revolutionise retail. The main objectives of retailers are to provide good service to their customers and to make a profit, Artificial Intelligence can be useful to reach those objectives.
Obviously to provide good services without losing money retailers need to manage the inventory so that there is no surplus or deficit. Artificial intelligence can handle audit inventory levels, identify out of stock and plan supply chain for retailers. With the capacity of AI to collect data, managing sold items and managing the delivery process of the inventory this is going to be much easier for retailers to manage the whole inventory process thanks to AI.
Pricing and promotion
It is nearly impossible for retail managers to fully analyse all of the data necessary for the elaboration of prices and use everything to inform their pricing decisions. AI can help make better pricing and promotion decisions. Considering likeability and brand image, AI is able to fix and change the price according to seasons. With the precision of Artificial Intelligence, there will be no more pricing errors.
Predict customer needs and anticipate demand
In order to manage stocks and set prices, it is necessary to have knowledge of demand and anticipate their changes. AI possess the ability to adapt to customers’ ever-changing needs in advance. By collecting sufficient data such as weather, important upcoming events in addition to age, gender or demographic criteria, predictions will be accurate. By anticipating customers purchases, retailers will be able to raise customer service and satisfaction.
Using AI in the retail industry permits to empower the retail workforce and AI will not replace retail jobs but rather let employees be able to correct errors detected with more accuracy. As in all other industries where AI is present, the benefits of using this technology are numerous. AI provides a huge number of capabilities and now is the time to start using it.