Artificial intelligence – or AI – has already disrupted most of our day-to-day lives. Whether it’s your phone’s smart assistant telling you the temperature or your streaming service offering up personalized recommendations, AI has become an important part of our lives. And the power of AI is also changing the face of business as we know it. In fact, according to a new report from Tractica, global AI revenues are predicted to grow from $643.7 million in 2016 to an excess of $36.8 billion in 2025. It’s safe to say that no industry will be untouched by AI.
The retail industry, for example, is learning to leverage AI to meet changing customer needs and expectations and to stay ahead of the competition. If your organization is considering a foray into AI, keep reading to understand how retailers are using AI to change the face of the industry.
- Flexible price adjustments. Retailers often need to analyze and adjust their pricing strategy in an agile way. Fortunately, AI technology can provide valuable, and near real-time, solutions for developing and tweaking pricing. These solutions can help retailers analyze multiple pricing models to arrive at the optimal price for a product. Retailers can also use this information to make real-time adjustments based on consumer demand, seasonal trends, and more.
- Enhanced customer service. The customer experience can make or break a business, especially in the retail industry, so businesses are always on the lookout for ways to improve customer service. AI solutions, such as chatbots, are just one way that retailers can keep customers engaged and happy. They can help answer questions, offer personalized recommendations, and collect important customer data. And the best part is, chatbots can be programmed to learn, thereby improving and refining future interactions with customers. Chatbots can also help refocus a business’s time and resources to other areas that may need more of a human touch.
- Improved logistics. Inventory planning, supply management chains, and shipping can all be a complicated strain on a retailer’s time and money. And mistakes can be costly. But with logistics management powered by AI, retailers can keep their inventory stocked and ready by predicting product demands based on historical sales, trends, location, and more. These solutions can keep your entire supply chain moving and ensure your customers aren’t left waiting for their order.
- Personalized recommendations. Many retailers are taking a page out of streaming service’s playbooks and using AI to create tailored recommendations for their customers. AI technology such as facial recognition can identify returning customers and remember their likes and dislikes to create a unique in-store visit or to offer tailored promotions or product recommendations. You could even go a step further and utilize advanced AI tools that analyze social media activity, demographics, and more, to understand customer interests and create offerings just for them.
- Streamline back-end operations. Between brick-and-mortar locations, online stores, and mobile apps, most retailers have business flying at them from multiple channels. This can make back-end operations complicated and time-consuming. No longer does a store employee wear one hat, they now have multiple roles to provide product information, manage merchandise, keep track of promotional offers, and more. But AI solutions can help streamline these processes by automating some processes or using robots for quality checks. This can save a retailer a lot of time and allow employees to focus on more productive work.
The future is AI
It’s safe to say that AI is no passing trend and we’ll continue to see more advancements in this technology. For retailers, AI can save time, money, and hassle and is revolutionizing how the industry operates. From personalized customer recommendations to streamlining operations to better customer service, AI solutions offer multiple benefits for retailers.
If your business is considering an AI journey, make sure you work with the right partner to guide you. At AscentCore, we work closely with our clients to understand their needs and build world-class digital products to enhance their operations. Reach out to us today to see how we can help you.