{"id":23533,"date":"2020-03-16T09:18:50","date_gmt":"2020-03-16T08:18:50","guid":{"rendered":"https:\/\/www.intellias.com\/?p=23533"},"modified":"2024-08-20T00:36:47","modified_gmt":"2024-08-19T22:36:47","slug":"artificial-intelligence-in-ecommerce-retail-hidden-potential","status":"publish","type":"blog","link":"https:\/\/intellias.com\/artificial-intelligence-in-ecommerce-retail-hidden-potential\/","title":{"rendered":"AI in eCommerce & Retail: Hidden Potential"},"content":{"rendered":"

Your competition isn\u2019t resting. According to the Lucidworks report<\/a>, the retail industry is leading the way in AI adoption. If your business hasn\u2019t embraced AI yet, it\u2019s time to rethink your strategy. Artificial intelligence in retail is one of the best tools for improving customer service and personalizing the shopping experience.<\/p>\n

At Intellias, we are actively expanding our innovation hub<\/a> with R&D initiatives and competitive AI accelerators. Based on our experience, we want to share our key insights on how retailers can grow their business and increase profit with AI technology.<\/p>\n

Artificial Intelligence and Machine Learning in Retail: Benefits<\/h2>\n

According to Statista<\/a>, retailers who have adopted artificial intelligence (AI) and machine learning (ML) technologies have increased their sales and annual profit, outperforming those who haven\u2019t implemented AI for retail.<\/p>\n

This shows that retail companies are already reaping significant returns on their AI investments\u2014and for good reason. Let\u2019s explore the key benefits they\u2019re experiencing.<\/p>\n

Unified customer data<\/h3>\n

AI-powered systems provide a 360-degree view of your customers by consolidating all their interactions with your brand. This comprehensive understanding enables you to predict shopping behavior, deliver tailored offers, and forecast shifts in customer demand. With these insights into consumer behavior, the retail experience becomes more of a deep, personalized conversation rather than just general small talk.<\/p>\n

Better customer service<\/h3>\n

AI chatbot assistants, trained on customer data, represent the next generation of hyper-personalized shopping experiences. Consumers want to find what they need quickly, no matter where they shop. AI chatbots, capable of processing text, voice, and image prompts, help customers find and purchase products in the blink of an eye.<\/p>\n

Optimized logistics operations<\/h3>\n

In the next 5 years<\/a>, AI could become a game-changer in last-mile delivery by analyzing real-time traffic data and suggesting optimal delivery routes. But that’s just the beginning. Cognitive robotics may revolutionize complex last-mile deliveries, with robots following voice commands and interacting directly with customers. For example, robotic warehousing and sorting, already used by giants like Amazon and FedEx, are expected to double by 2029<\/a>.<\/p>\n

Let\u2019s take a closer look at the applications of AI in retail.<\/p>\n

\n
\n

Discover how unified commerce can revolutionize your retail business<\/p>\n

\n
<\/div>\n <\/div>\n <\/div>\n Read more<\/span>\n\t\t <\/a><\/div>\n

AI Applications in Retail<\/h2>\n

The applications of AI in retail are so diverse that it\u2019s impossible to cover them all in one article. However, let\u2019s explore some of the most common ones to get a bird\u2019s-eye view of just how powerful AI can be.<\/p>\n

Market trends prediction<\/h3>\n

The main benefit of artificial intelligence and machine learning in e-commerce and retail is the ability to process large volumes of data at speed. Provided with sales records, market information, and consumer data, AI can discover market trends, predict consumer behavior, forecast sales, minimize customer churn, optimize restocking, and more.<\/p>\n

Based on consumer feedback, inventory state, and sales trends, AI can make specific business predictions that arm retailers with the information they need to enhance productivity, reduce waste, prevent errors, improve scalability, and boost marketing campaign success rates.<\/p>\n

Consumer experience automation<\/h3>\n

According to a survey of 20,000 consumers in 26 countries<\/a>, only 14% of people have a positive experience shopping online. This drops to just 9% for in-store shopping.<\/p>\n

Artificial intelligence systems can provide customers with 24\/7 support, allowing them to focus on other important tasks. Such support includes in-store assistance, virtual mirrors, cashless checkouts, mood tracking, customer recognition systems, etc. By automating tasks that have been traditionally reserved for humans, AI helps retailers boost customer satisfaction while reducing labor costs and preventing fraud.<\/p>\n

Inventory design and space usage optimization<\/h3>\n

Artificial intelligence can also optimize inventory design and space usage. By considering consumer preferences, expiration dates, color schemes, locations, seasons, and weather, AI-driven robots can better design shelves and produce them faster than human beings. The result\u2014a boost in sales and a reduction in space waste.<\/p>\n

Data-driven personalization<\/h3>\n

In today\u2019s competitive landscape, only those who truly understand their customers will succeed. Consumers expect companies to recognize them and provide a seamless experience across all touchpoints. AI algorithms and data analytics enable retailers to analyze customer data and offer personalized deals and product recommendations.<\/p>\n

For example, AI can personalize a product search page by taking into account specific criteria such as color, size, material, budget, and delivery timeline. By leveraging this information, companies can tailor search results based on past interactions, enhancing the overall shopping experience.<\/p>\n

Improved in-store operation<\/h3>\n

AI in retail stores enhances the customer in-store experience and optimizes inventory management through smart shelving, queue management, and in-store analytics.<\/p>\n

Smart Shelving<\/strong>: Shelves equipped with sensors monitor product availability in real time and trigger alerts for restocking when needed.<\/p>\n

Queue Management<\/strong>: AI systems analyze customer flow and service speed, providing insights to reduce wait times during peak hours.<\/p>\n

Examples of AI Implementation from Top Retail Enterprises<\/h2>\n

<\/p>\n

Artificial intelligence and machine learning technologies have the potential to revolutionize the retail industry by adding efficiency, accuracy, and personalization capabilities. From what we see, it\u2019s already happening. The examples below reveal how AI-powered technologies help retailers improve consumer experience, restocking and inventory management, delivery, and price adjustment.<\/p>\n

Consumer experience<\/h3>\n

Building fruitful and long-term relationships with customers is a crucial part of the retail industry, and artificial intelligence offers endless possibilities in this respect. Here are a few examples:<\/p>\n