Impact of AI on Retail Industry

Over 65 percent of customers believe that the products and services offered by their current brands can be improved. In fact, customers are prone to ‘brand switching’ if they receive a better shopping experience from competing brands. As a result, businesses must introduce new and improved marketing strategies to attract and retain their target audience successfully.

In the digital era, customers are highly knowledgeable and continually seek for more high-value and memorable shopping experiences. Thus, incorporating the store infrastructure with emerging technologies is crucial in generating more personalized and high-tech experiences. Advancements in the field of Artificial Intelligence, Machine Learning, Big Data, and the Internet of Things will all play a vital role in advancing current business practices and helping them flourish in the highly dynamic market. Furthermore, they will also enable businesses to gain accurate and real-time insights into customer behavior and upcoming market trends.

Benefits of Artificial Intelligence

Artificial Intelligence has become a key element in digitizing retail by personalizing in-store offerings and creating a more engaged and interactive customer experience. AI provides companies with the opportunity to bridge the gap between online and offline sales channels. Furthermore, AI-based software assists firms in proving a seamless experience across these platforms. As a result, over 55 percent of business executives are expected to increase investments in AI this year.

Artificial Intelligence enables firms in generating creative and innovative strategies to stay at the forefront of digital developments and incorporate futuristic features into the store layout. These features include popular industry trends such as digital mirrors, self-checkout counters, and mobile wallets. AI also enables retailers to gather, store and process large amounts of data generated across various business channels. Companies can utilize the data to gain insights into customer tastes and preferences. As a result, businesses can provide customers with unique and one-of-a-kind shopping experiences and gain an advantage over competitors.

Impact on Retail Operations

Artificial Intelligence also assists firms to enhance other technological advancements such as Digital Assistants, Chatbots, and People Counting Sensors. Furthermore, AI also helps firms to launch creative and innovative strategies to boost popular retail concepts such as Omnichannel retailing, Experiential retail, pop-up stores, and loyalty programs. They allow firms to conduct day-to-day business operations conveniently. AI-based technologies assist retailers to reduce dependence on employees, and thus, avoid human errors. Moreover, they also eliminate corporate bottlenecks and promote sustainable business growth in the retail sector.

Brick and Mortar sales aren’t going to slow down any time soon. With the rise in opportunities and emerging technological advancements, the retail industry is in a constant state of evolution. Companies that are not adopting these developments are losing out against the robust industry competition. Artificial Intelligence assists firms to promote brand advocacy through personalized and immersive customer experiences. It also enables retailers to bridge the gap between customer expectations and reality, and flourish in the data-driven economy.

Chief Business Enabler – Xpandretail

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