AI In Retail: Uses of Artificial Intelligence in Retail Business

ai in retail

Artificial Intelligence In Retail

Artificial Intelligence (AI) has made significant changes in various industries. The retail sector is not an exemption. Artificial Intelligence in the retail industry has brought tremendous advancements in the industry.

AI is helping retailers in many ways. Artificial intelligence usage in the retail business allows retailers to offer improved shopping experiences to their customers. Due to high costs and less awareness of this cutting-edge technology, few retailers are not using AI.

Herein, you can get to know-

  • How is AI used in the retail industry?
  • What are the applications of AI in retail?
  • Future of the retail industry with AI

What AI Can Do for Retailers?

The uses of AI in retail are incredible. AI in retail is empowering businesses to improve operational efficiencies with automation, intelligence, and transparency features of the technology.

AI use cases in Retail like improved decision-making, optimized inventory tracking & management, and demand forecasting are all attracting retailers to adopt and transform their traditional retail operations. Moreover, the use of artificial intelligence in the retail business allows retailers to offer an improved shopping experience to customers.

Let’s take a look at the top benefits of AI in retail business.

Top Benefits Of Artificial Intelligence In Retail Business

The future of either online or in-store shopping will be around AI. Modern AI technology benefits retail businesses in multiple ways. AI-powered retail solutions help retailers offer new business avenues and improve the customer shopping experience.

Further, with a blend of Machine Learning (ML), Deep learning, and predictive analytics techniques, AI apps in retail can efficiently process in-store customer experiences automatically and enable retailers to improve their services. This AI strategy for retail helps retailers improve overall service quality and increase customer retention rate.

Likewise, there are so many benefits of AI in retail. Let’s look at a few of the best applications of AI in retail industry.

Top 6 Real-world Applications of AI in Retail Industry

How does artificial intelligence help in retail industry?

For sending personalized customer recommendations, hassle-free in-store navigation, increasing visibility across supply-chain & logistics functions, better price prediction, and quick auto/scanner-enabled checkout, etc., are all a few of the best applications of AI in retail industry.

Let’s look at the top applications of AI in retail.

#1. Digital Racks for Apparel & Fashion Products

It is the best application of artificial intelligence in the retail industry. Using AI technology, virtual trial rooms and virtual shelves offer a more personalized experience to customers.

With this kind of AI apparel application, customers can easily find the best and perfect outfit. Hence, AI in the retail industry improves the shopping experience and helps customers select suitable products from a pool of fashion and apparel products.

#2. Quick Decision Making

Artificial intelligence in the retail business gives business insights to retailers for making quick decisions.

AI in retail helps customers to make quick decisions in buying products. AI-based virtual trail rooms with digital mirrors improve customer decision-making power. These intelligent retail systems help offline buyers in saving valuable time for online buyers too.With a touch-based screen, customers can select different options like accessories, shoes, etc. They can easily pick the products which look perfect to them. These services are not only for clothing, but beauty and cosmetic brands are also using AI. Artificial intelligence helps customers in checking how foundation or lipstick suits them.

USM develops Artificial intelligence retail apps for retail clients. Get a free product quote right now.

#3. Virtual or Digital Assistants

AI for retail has a bright future in the near term future. The deployment of AI technology has been growing in the market.

Using AI, NLP, and semantic analytics, retailers can provide quick and 24*7 support to their customers.

Retail stores are using touch screen panels and robots to improve the in-store experience of customers. AI in-store robots provide useful information to customers regarding product location and all a few of the benefits of using AI virtual assistants inside stores.

Thus, AI assistants for retailers can reduce the costs spent on their employees. This AI application for retail improves retail services, saves money, and attracts new customers.

#4. Enhanced Customer Support Using Chatbots

Artificial Intelligence has changed the retail industry. AI-based Chatbots allow retailers to engage their customers confidentially and efficiently. Using Chatbot applications, retail brands can process thousands of customer queries simultaneously.

In general, AI Chatbots for retail give an immediate response to user queries. They suggest and recommend customers just like a human. Human intelligence, along with AI Chatbots, is transforming the retail sector into digital.

#5. High Security Backed By AI

It is another best application of artificial intelligence in the retail industry. The modern and the best AI-powered security equipment enables retailers to capture customer acts inside the store. Thus, enhanced security and optimized services are ensured.

On the other hand, by using video analytics, retailers reduce thefts. Using footage captured by AI-powered security equipment, the retailers can do real-time monitoring. AI apps send security alerts to the admins so that the owners can take instant action.

#6. Robotics In Retail

The benefits of AI in retail are uncountable. AI Robot is one of them. Artificial intelligence robots for the retail industry are driving innovation in retail.

From logistics and supply chain, in-store operations, marketing, and sales to back-office operations, AI robots play a vital role in retail businesses. Speed and accuracy as capabilities, intelligent robots are altering the way of retailer businesses.

The best examples of artificial intelligence robots for the retail sector are:

  • LoweBot, a retail service robot, helps customers navigate the store
    Location: San Francisco, California
  • Tally Robot, an autonomous robot, keeps track of products list (quantity) on shelves
    Location: San Francisco, California
  • Pepper Robot: It can interact with customers, navigates them, and respond to their queries
    Location: San Francisco, California, and Boston, Massachusetts

All the above applications are a few, but AI will completely control the retail industry in the coming years. Is your retail business is ready to adopt the true potential of AI? Get started!

#7. High Security Backed By AI

It is another significant benefit of using artificial intelligence in the retail industry. The modern and the best AI-powered security applications or surveillance systems enable retailers to capture customer acts inside the store, reduce thefts, and optimize security levels. Hence, AI-based real-time monitoring capabilities of AI apps. Such continuous monitoring potentialities of AI applications help retailers find suspicious activities and prevent losses.

How will AI benefit in the future for retailers and customers?

AI in retail brings automation and makes tremendous changes in the future. Here are a few concepts that make sense in the future of retail stores.

  • No need to wait in a long queue
  • No need to stand for hours for billing
  • The concept of in-store drones will go viral
  • AI-powered virtual in-store assistants
  • Biometric technologies recognize the face of a customer soon expand in the future
  • Physical retailers will embed more online functionalities to provide an online experience to the customers
  • The concept of brain-computer interface

Why Retailers Should Adopt AI?

Most of us don’t wish long wait times when we visit retail stores. But, unfortunately, we have to stand in queue for billing for a long time. Artificial intelligence in retail will solve this burden.

Besides, we feel happy if we get personalized product recommendations and hassle-free checkout practices. Am I right?

Yes, AI will do this seamlessly.

As we discussed above, the applications of AI in retail offers outstanding business growth to retailers. AI brings retailer businesses online to retain customers and fuel their revenues.

The Future Of Retail With Artificial Intelligence

  • AI is a more promising technology for retailers because of its efficiency. This AI technology avoids manual errors and provides accurate results. According to Forrester, the best AI applications will augment 70% of the workforce by 2025.
  • The companies are observing profits with AI. Increased production rate, customer experience and satisfaction, and perfect delivery are few benefits of AI in the retail business. As per Tractica, AI retail solutions help to increase industry value to $36.8 billion by 2025.
  • According to the global analysis, Artificial intelligence in the retail market is estimated to be US$ 27.2 billion by 2025. Driven by the changing customer preferences and their shopping patterns are the significant factors for this growth.

The above market values of AI for retail might go beyond estimated numbers with increasing demand for AI.

Therefore, a radical shift in the global retail industry with AI is guaranteed. And, we can say that AI is the future technology for retail.

ML in retail helps retailers in optimizing price structure, collecting customer information, and making logistic decisions. It reduces costs and builds long-term relationships with customers. Hence, Artificial intelligence and ML revolutionize the future of retail marketing.


The retail domains are interested in AI. They are looking to harness the power of AI technology in retail to grab business benefits. The use of artificial intelligence in retail ensures a blushing opportunity for retailers. AI makes retailers a strong competitor in the retail industry.

Now, it’s your turn. Are you a retailer? Redesign your retail store with AI products and services. USM is the best artificial intelligence service provider, based in Chantilly, Virginia, USA.

We design and offer intelligent retail solutions and strive to transform your hazy business approaches to digital and automated. Hurry up, expand your brand with retail intelligence!

USM is the best AI development company based in Chantilly, Virginia (USA). We design and develop intelligent retail solutions that transform your traditional operational ways.

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