How Artificial Intelligence Is Transforming The Retail Space

2018 has become the year where intelligent technologies are emerging rapidly, with the Artificial Intelligence technology gaining its momentum in the retail industry. The retail industry is going through a huge disruption, whether brick and mortar are fading or not, everyone is going online. Today’s millennial and generation Z, both groups are playing a larger part of the disruption, as they are driven by what is happening on social media and are constantly using their smart devices which is all driven by technology as it enables the organization to provide very exciting innovations and customer journey. 

Besides looking for great products, consumers are also looking for great experiences. According to research, customers now, more than ever demand specialized experience in AI. Retailers are waiting for the big Artificial Intelligence push in the retail space as it would enable brands and retailers to deliver more elaborated experiences and new products. 

Furthermore, retailers are leveraging Artificial Intelligence to anticipate needs of the customers and create meaningful interactions. Starbucks has launched its app which is an AI-powered Barista that interacts with customers and understands their taste and preferences. 

Here are some revolutionary AI implementations in the Retail Industry – 

1.     Few years’ back chatbots were introduced in the AI world. Chatbots facilities mobile purchasing and drive efficiency as well as increase conversion rate and was considered as an emerging player in the new technology

2.     Image recognition is rapidly expanding within AI, as both AI and mobile interface is perfectly aligned which allows customers to visually search for an item. In the coming years, customers will be able to purchase instantly through this technology as they can just click a picture of the product and the AI technology will be able to deliver product information. Brands and Retailers will benefit immensely as it drives an aid to sales via mobile phones 

3.     Recommendation engines enable brands and retailers to personalize a user’s experience by leveraging on-site content and browsing habits as this technology uses machine learning algorithms. The machine learning algorithms are integrated into a retailer’s e-commerce system which gathers data of the customer's path to purchase, which will be later used to predict future purchases. Retailers can use the data collected to send out targeted messages such as push notifications or emails to bring customers to the site. Netflix allows the organization to access the continuous customer information to predict and understand the customers behavioral pattern. 

4.    Personalization has led to a rise in the in-store AI demand. Brands and retailers have seen a significant shift in the customer purchasing behavior. E-commerce has provided customers with an efficient platform where they can interact with the brands and retailers. Brick and mortar need to adapt to attract the modern customers in the store with the help of AI technologies. However, retailers need to create seamless omnichannel experiences in order to lead the path to purchase. Nordstrom has incorporated geolocation AI technology. It allows customers to reserve products via the app that they want to try on in-store. Then, employees are notified if an app user enters the store. If that customer has reserved any products, staff can prepare a dressing room with their name and items. 

5.    AI empowers the retailers with unparalleled customer insights that promote personalization. The potential of offering highly personalization is at the peak. Brands and retailers get a rich in-depth understanding of consumer data and enable highly advanced segmentation of the targeted audience based on social profiles and specific purchasing behavior. AI insights allow marketers to personalize services because of the segments. AI in retail allows to gather lot more information in its process which enables the retailer to provide customization at the individual level. 

The Future of AI in the retail space is ever changing and revolutionary; if not somewhat surreal. And retailers today aren’t hesitating to experiment with AI solutions as it raises a great deal of opportunity particularly because considering the fact that it exploits both the online and offline channels to deliver personalization. Although many specialists venture that the opportunities are endless, many forms of AI are already being implemented in the retail scape.