Artificial Intelligence will change the way retailers use to conduct day to day business operations. This technological advancement enables firms to accurately gather, store and process large amounts of customer data to generate robust marketing strategies. In addition, AI empowers companies to provide personalized product offerings and improve customer shopping experiences. According to research, over 60 percent of the companies utilizing Artificial Intelligence will experience significant growth in sales and profits.
Evolution of the Retail Industry
With the introduction of Artificial Intelligence and Machine Learning, retailers can keep track of evolving customer habits and market trends. Other advancements like Virtual and Augmented reality, Data Analytics, Cloud Computing and Blockchain will also significantly improve the retail industry. As a result, over 90 percent of the businesses are expected to invest in these digital developments to stay relevant. Moreover, they are also likely to improve customer satisfaction and retention rates successfully.
Developments in the field of AI will also improve other services offered, such as Chatbots and People Counting Solutions. Retailers can now accurately track customer movement and gain real-time insights on customer preferences and the impact of marketing strategies. Furthermore, firms can also improve customer interaction by over 40 percent and thus, promote repeat purchases in-store. Therefore, retailers must embrace these digital advancements to further strengthen their positioning within the highly dynamic and competitive industry. AI can also improve 3D sensors and heat mapping analytics to further helps in crowd management, thus improving customer satisfaction by over 35 percent.
Despite security concerns such as data security and privacy, a business can improve cybersecurity by generating awareness and educating employees about safety precautions to prevent online risks. Moreover, employees can expect a boom in job opportunities in the field of Information Technology (IT). However, businesses will have to provide employee training strategies to assist employees in developing the required skills to acquire these jobs.
Growth and Development of Artificial Intelligence
Statistically, over 40 percent of the businesses plan to invest in Artificial Intelligence to generate productivity and drive business efficiency. Artificial Intelligence will enable firms to reduce dependence on human labour and thus minimize errors and avoid corporate bottlenecks. According to experts, AI will assist retailers to save up to 30 percent in costs and lead to higher profits.
A market trend that has gained immense popularity over the years is Omnichannel retailing. This form of retailing has generated a myriad of opportunities for businesses across various platforms. Artificial Intelligence enables firms to maintain constant connectivity to transfer customer data across these platforms. Moreover, AI also assists in understanding and improving key performance indicators (KPI’s) to improve business operations and promote sales. Inclusion of IoT technologies with AI is designed to perform complex tasks and thus assists in achieving long-term organizational goals.
From Automation to 5G and Robotics, the technological landscape is continually evolving. These advancements will empower retailers to achieve the ‘Store of the Future’ and incorporate improvements like digital mirrors and self-checkout machines.
Written By: Binoy Matthew
Lead Code Architect