By: Flaka Ismaili    October 26, 2023

Impact of AI on the retail industry

AI platforms like Zeta analyze customer data from multiple customer interactions with mobile apps, email campaigns, and website clicks to identify patterns related to online shopping behaviors. These insights empower digital retailers to make more effective product recommendations and improve the online shopping experience according to each customer’s specific preferences and behaviors. By now, e-commerce customers are accustomed to “guided” shopping experiences online, where stores suggest products as they browse and subtly, or not-so-subtly, guide them through the entire shopping experience.

Today’s dynamic retail industry is built on a new covenant of data-driven retail experiences and heightened consumer expectations. But delivering a personalized shopping experience at scale — that is relevant and valuable — is no easy feat for retailers. As digital and physical purchasing channels blend together, the retailers that are able to innovate their retail channels will set themselves apart as market leaders. Retailers are using AI and technology like machine learning (ML) to power decisions about inventory and the customer sales journey and behind-the-scenes tasks that impact profit margins and efficiency. From better virtual retailer recommendations to theft prevention in physical stores, retail is an industry that has fully embraced the promises of AI.

What is artificial intelligence in the retail market?

The content on this website is protected by the copyrights of Retail Insider Media Ltd. or the copyrights of third parties and used by agreement. This not only reduces the hassle of changing in and out of outfits but also reduces returns, as customers have a clearer idea of what they’re purchasing. To access Emma’s full article, including a fascinating case study on Shein and its use of AI, please download the full ‘Retail Renaissance’ report. © 2021 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. Some or all of the services described herein may not be permissible for KPMG audit clients and their affiliates or related entities.

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To avoid being left behind, it is important for organizations to understand these trends and apply specific actions to begin their transformation sooner rather than later. This way they can create a more agile and responsive supply chain that can capture the promise of value creation, cost reduction and improved shareholder value. With a future that promises autonomous, self-learning machines seamlessly managing the broader supply chain process, now is the time for organizations to overcome the inherent silos and enterprise systems that will restrict their progress. Enabled with a raft of technology developments, a new paradigm is emerging in supply chain management. One where organizations can respond quicker to day-to-day requests, proactively address problem solving, and reduce errors and inefficiencies. Most importantly, organizations will be more resilient to future supply chain shocks.

Using AI technology and data-driven analytics, retailers can optimize processes, reduce costs, improve operational efficiency, and enhance customer experience. The AI services in retail could exhibit profound growth on the back of robust demand for managed services to boost efficiency, productivity, and accuracy to optimize business operations. Hence, the speedy adoption of AI solutions is growing the demand for services as it helps creates smart functions, enhances the consumer experience, improves revenue growth potential, enables rapid innovation, and reduces human error.

Size of the global Artificial Intelligence (AI) market in the retail industry in 2020, with a forecast from 2021 to 2028

“Take the learnings from Gen Z and adjust accordingly for Gen A. For example, with Gen Z, retailers prioritized fast trends and efficiency over discoverability and personality. Bring back individuality, excitement, and entertainment like Bass Pro Shop’s new mega store in Memphis does, with a hotel, restaurants, aquariums, waterfalls, and a bowling alley,” advises Ghize. “This Gen also has unique sensibilities and niche interests to play to, too many to mention, but all in our report, The Kids Are (Not) Alright,” said Ghize. Retailers can use AI to create descriptions for their products, promotional content for social media, blog posts, and other content that improves SEO and drives customer engagement. We at LEAFIO are incredibly inspired by the cases of global retailers using AI technology. However, our mission and dream is to make technology available to businesses of any size and in any part of the world.

The organic evolution of online media sharing has democratized how consumers learn about products, goods, and services. Retailers should embrace these creators and treat them as part of the community for the brand. Content creators provide a new way to introduce products with authentic recommendations, and they help connect people with products they’ll love based on their shared tastes or expertise.

Which is the fastest growing region in AI in Retail Market?

The AI technology detects when a hole appears on a shelf, like in the light bulb section for example. The system sends a real-time notification to the store’s devices so staff can quickly replace the supply on the shelf from the stock room. Home improvement retailer Lowes uses small cameras, mounted on shelves in high-touch departments. In the future, access to excellent AI tools may become commonplace, levelling the playing field. This means that the starting point for competition will change, and the ability to adapt AI to a company’s needs will be crucial. Retailers looking to stay competitive need look no further than AI in the retail business.

Moreover, applications of CRM could help boost social media integration, seamless communication, and data collection for retail businesses. The adoption of big data analytics and AI in the retail industry has been growing due to technological advancements, increasing penetration of applications and smart devices, adoption of cloud services, and proliferation of IoT. A crucial segment of the retail industry is customer relationship management (or CRM). Building a fruitful relationship with a customer is a primary objective of any sales personnel. With the help of AI, we can gain insights regarding the customer trends and gain insights on which set of customers to prioritize over others.

Zeta Global’s AI-Based Audience Engagement

Read more about AI in Retail Industry here.

Flaka Ismaili

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