Top Use Cases of Artificial Intelligence in Retail Industry
In This COVID-19 Pandemic, The Retail Industry To Transform 100% With AI
The retail industry has been struggling with rapidly advancing online shopping over the past decade. The retail industry is facing waves of business change with online retail operations.
Along with the rapid growth of the online retail business, the COVID pandemic also impacted the retail industry. It is why global retailers are looking to transform their business with artificial intelligence (AI) technology.
Artificial Intelligence in Retail
Artificial Intelligence (AI) add value to retail operations from the supply chain to the customer experience.
According to a survey among retailers, 80% of revenues will generate from AI by 2023. AI in the retail industry offers efficient performance than ever before.
Like healthcare and manufacturing, the retail industry is the next fastest-growing sectors. It has changed tremendously in the past two years. By using advanced AI and ML technologies, retailers are improving customer satisfaction.
How is AI used in retail?
The artificial industry is powering the modern retail industry. Before, COVID-19 pandemic, nearly 80% of buyers are used to buy goods in physical stores. But, post-pandemic, physical stores are hampered with weak sales. Customers are likely to get their products through online shopping.
In this article, we tried to give you a brief on how a physical retail store could ramp up using AI?
AI and machine learning in retail offer a safe and personalized shopping experience to customers. They create a more engaged business in this pandemic. Besides, using AI technology in the retail industry, retailers can easily connect their retail locations digitally. Further, AI tools in retail acts as a bridge between physical and virtual sales units in real-time.
USM’s retail mobility solutions improve business transparency and customer reach. Our in-store AI solutions for the retail industry help you manage inventory and customer assistance smarter.
Thus, AI in the retail industry creates a bunch of opportunities for retailers in the future. In the below session, we compiled the best use cases and benefits of AI in the retail industry.
AI use cases in the retail industry
#1 Product recommendations to customers according to their search history
AI in retail stores analyze the vast amount of customers’ data and extract patterns from their purchases and preferences. It helps retailers automatically send personalized recommendations to customers. Such automation in business improves conversion rates, order values, and customer satisfaction.
USM will deliver such AI mobility solutions for retail that provide a personalized store experience to customers.
AI systems using ML techniques execute processes to analyze the purchasing patterns of the customers. Generally purchasing patterns of customers are categorized based on their preferred products, brands, and cost, etc.
#2 Value-added Customer Service to Attract More Customers
Based on the product quality, pricing, delivery, and response services, customers build their trust in a brand and revisit the store.
Brand awareness plays a vital role in attracting more customers to the store. Retaining old customers and attracting new customers is your brand is a buzzword in the market. Moreover, quick response to customers also improves the traffic of in-store as it shows the responsibility towards customer queries.
AI-enabled in-store assistants build a strong communication channel through which customers can get answers to their queries. AI-powered digital assistants are the best examples of AI innovation for the retail industry.
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#3 Demand Prediction & Management
There are multiple benefits in predicting the demand for a product. AI-powered demand forecasting strategies help inventory managers to maintain products with respect to demand.
AI and ML methods help to perform accurate demand prediction. They also help to understand the seasonal trends. Hence, retailers can avoid stock-outs by predicting demand.
AI In Retail: What Artificial Intelligence Can Do For Retail Industry?
#4 Pricing Strategy
It is one of the best applications of AI in retail. Product pricing is one of the most challenging tasks for retailers. Before pricing, they should know the product price in the market.
Customers always opt for a product with a low price. It has been shown from several studies that customers wait for the time for a price drop. Also, they wait for arriving for the product at an ideal cost.
Yes, sometimes, this strategy will give positive results in sales. Artificial intelligence applications for retail are useful to fix the best product price that attracts customers. Without giving you weaker sales, AI models in retail stores ensure profits in terms of reasonable pricing.
AI and ML technologies in retail stores allow retailers to understand and analyze the buying behavior of the customers. Thus, it helps retailers provide a better personalized in-shop experience to customers.
All the above use cases of AI in retail are acquired maximum share across the retail industry. These AI applications offer profits and brand image for retailers. By analyzing the above metrics, we can strongly compile that AI transforms the retail sector in the near term future.
Are you a retailer? Would you like to attract more customers to your store?
Get in touch with USM AI experts! Our AI Experts bring your AI projects for retail into reality.