According to The AI Journal, OpenAI’s ChatGPT, is soon to be rolled out across all the Microsoft’s products and search engine Bing, AI chatbot technology now has the potential to materially advance and disrupt companies as large as Google and as small as brick-and-mortar retail shops. Thanks to the newfound accessibility and easy use of these technologies, Artificial Intelligence (AI), Machine Learning, and IoT could soon be the norm in modern business practices, and the retail industry is no exception. By leveraging data and technology, retailers have a unique opportunity to transform the customer experience and drive more effective strategies.
As of today, The AI Journal estimates approximately 15% of all businesses have already adopted AI technology, but the retail industry is behind. Despite the numerous benefits it can offer, retail is among the industries with the lowest adoption of AI technology (11.5%). The slow pace and low rate of adoption of AI and IoT technology in retail is partly driven by the fear of damaging approaches and models that have worked well for decades, plus a lack of understanding of what these technologies do and how they already drastically increase the level of competition in the retail sector.
Analysts say 2023 will be a watershed year to evaluate how well this new technology can be deployed on a large scale and across multiple industry sectors. What many retailers may not realize is that a full AI adoption strategy is needed to thrive in the future.
Retail Will Benefit from AI, But AI May Benefit Even More from Retail
As part of the digital transformation of retail, AI, Machine Learning, and IoT in the retail industry are key to converting data into actionable insights, leading to a more engaging, targeted customer experience, brand growth, and more intelligent operations. Having a strategy to adopt AI, Machine Learning, and IoT technology will be crucial for retailers to stay ahead in a highly competitive industry and meet the constantly evolving demands of customers both in 2023 and beyond. By leveraging these technologies, retailers can not only increase efficiency, drive sales, and stay ahead of the curve, but could fundamentally transform and increase the value of their industry as the one that interacts with customers.
Compared to just a few months ago, AI applications are emerging and developing in new and impressive ways as their interactions with people expand, and expansive applications focused on retail present a unique space and opportunity for this technology to learn and grow even faster. From simple data capture to complex programs tailored to specific needs, these applications now have the potential to greatly enhance retail organizations.
AI, Machine Learning, and IoT can provide valuable insights into customer behavior and preferences, streamline operations, and enhance overall shopping experience, but to do that, the vast datasets on consumer behavior that only retail can provide are needed. For example, AI algorithms can analyze customer data such as purchase history, demographic information, and preferences to suggest products that the customer is more likely to be interested in. Allowing AI to be applied in this space not only helps retailers do their job but will also help AI grow as an evolving tool.
Retailers Need a Strategy to Adopt AI as Part of Digital Retail
Retailers can also use AI to personalize the shopping experience in physical stores by using computer vision technology to recognize customers and provide them with personalized recommendations and promotions. Many envision this can be done through interactive displays and personal shopping assistants.
AI algorithms can analyze sales data day-by-day and even predict which products are likely to sell quickly and in what quantities, optimizing inventory management, reducing waste, and increasing efficiency. Retailers can then adjust their orders accordingly, reducing the risk of overstocking or stock shortages. Additionally, AI can be used to optimize product placement in stores, ensuring that the right products are in the right place at the right time to meet customer demand.
AI can already improve supply chain management by reducing the time and costs associated with managing complex supply chains. For example, AI algorithms can analyze shipping data to identify potential bottlenecks and optimize shipping routes, reducing shipping times and costs. Retailers can also use AI to track and monitor the progress of shipments, ensuring that products are delivered on time and in the right condition.
AI can also be used to improve security and prevent fraud in the retail industry. For example, AI algorithms can detect patterns of fraudulent behavior in real-time, such as unusual transactions or unusual buying patterns. Retailers can then act to prevent fraud before it occurs, reducing the risk of financial losses.
How Can Hanshow Help?
Hanshow has established itself as a leader in the field of electronic shelf label solutions (ESL), offering a range of innovative and integrated solutions designed to improve operational efficiency and reduce labor costs for customers across various industries. At the core of Hanshow's business is its suite of IoT smart terminals and self-developed system platforms, which are powered by cutting-edge AI technology to meet the ever-evolving challenges and opportunities facing businesses today.
One of the key components of Hanshow's offerings is its award-winning Visight AI Camera which is mounted in strategic locations around the store to provide stationary monitoring of shelves and planogram management. This provides valuable insights into stock levels, helping retailers to optimize their sales and minimize out-of-stock times.
In addition to the Visight AI Camera, Hanshow also offers the SPatrol Robot, which provides similar monitoring capabilities but is designed to roam store aisles, collecting information on shelf stock and feeding it back to the company's backend systems. This allows retailers to get real-time insights into their inventory levels and quickly respond to changes in customer demand.
Finally, Hanshow's ESL solutions are also accessible through a mobile phone app, providing customers with a convenient and user-friendly way to collect and manage shelf information. All of these solutions work together to create a highly accurate and interconnected feedback loop that helps retailers improve their operations, boost sales, and stay ahead of the competition.
Reference:
https://aijourn.com/retail-technology-predictions-for-2023/
https://aijourn.com/ai-in-retail-a-solution-to-revolutionise-an-industry/
