How is Artificial Intelligence Transforming the Retail Industry
From “Okay Google” to “Hey Siri” to “Hey Cortana” —every single thing on this planet is changing its way of doing work with more optimized and effective way.However, nothing can beat the power of offering personalized consumer experience to drive sales and their long-term retention.Because of the digitization Artificial Intelligence (AI) is becoming now already the backbone of this digital world. With the help of artificial intelligence consumers, expectations form the retailer of all sizes has eventually increased.According to Plunkett Research in 2017, ‘Retail’ which is one of the largest industries in the world was estimated to have sales of $5.73 trillion in the US.If you’re someone who is into retail industry or have interest regarding the same then you must be aware of the fact that due to increased growth in technology, doing business nowadays has become much more challenging than ever.
- 94% of the retail executives are likely to invest in AI if they’re familiar with it
Thus it is has become obligatory for retailers to make use of AI in their business to stay ahead of the competition and their customer needs.Now let’s see how exactly AI is transforming the retail industry.
Improvement in Inventory management
Many new features are being innovated in the field of AI with each day passing, which is now used to meet the demands and the requirement of the consumers.
Paper with words inventory management and charts.[/caption]Thousands and Hundreds of man-hours are being saved in each sector as AI is giving insight on how the industry can benefit by eliminating the cumbersome process of checking inventory manually.AI is basically changing the way people buy or sell the product out of the inventory management. Data mining has now made it possible for the retailers to mine the data in more speedier and efficient way, which indirectly helps them to manage their products accordingly.
Personalized consumer experience
A personalized consumer experience has helped tons of brand stay to ahead of the competition. Here are some stats where AI is making its personalized presence. As per the data of worldretailcongress:
- 48% of the online shoppers believe the importance of providing on-demand personalized advertisings.
- While 45% of them want the same option in the online store.
Let's see two areas where AI is helping retailers with personalized experience
- Chatbots have evolved over the years and it is found that it has served both buyers and sellers efficiently by keeping them engaged 24-hours with customer service and personalized
- Machine Learning is helping companies by providing their customer with more personalized product by suggesting them the relevant product or exciting offer through pattern recognition or shopping habit of customers.
Wrapping it up
Global AI market is expected to reach an astounding value of $35,870 billion USD by 2025. A retailer cannot ignore that huge number as it itself articulates a serious business consideration for the retail sector.AI is helping to transform the way businesses are reaching shoppers by integrating advanced digital technologies.If used in an organized and appropriate manner Artificial Intelligence can be a fruitful and powerful tool for any retail business.
