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 and help them in making faster decisions towards their purchases. It means that AI-enabled virtual apparel applications allow customers can simply try outfits over a digital board and select the best and perfect suits.

Hence, the use of Artificial Intelligence in retail business will ensure next-level trial experiences and help customers’ select suitable products from a pool of fashion and apparel products.

#2. Quick Decision Making

It is one of the most common applications of AI in retail. Artificial intelligence in retail plays a significant role in processing customer and market data and giving insights into market opportunities. These insights will help retailers make quick decisions and build strategies for ensuring growth in this competitive digital era.

Accordingly, as we discussed, AI in retail will also help customers make quick decisions in buying products. Because, if you buy apparel in physical retail stores, you may be frustrated in trying different apparel. AI-based virtual trail rooms with digital mirrors improve customer decision-making power. These intelligent retail systems help offline buyers save valuable time for online buyers too.

With the help of a touch-based screen, customers can select different options like accessories, shoes, etc. They can easily pick the products that look perfect to them. These services are not only for clothing but beauty and cosmetic brands are also using AI. Artificial intelligence helps customers check how foundation or lipstick suits them.

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

#3. Price Prediction

It is one of the top applications top applications of AI in retail. The use of AI in retail for price estimation has become a trend in the global retail and e-commerce industry. By analyzing massive historic sales data and market demand for a specific product or service, AI-powered price prediction applications will accurately decide the best prices and strengthen sales opportunities.

One of the other benefits of predicting the price is that retailers can stay on top of the digital competition by offering products/services at the best and the most affordable prices. Such price prediction analysis and forecasted information will help businesses to set the price aligned with the market conditions.

#4. Demand Forecast & Inventory Management

It is one of the best applications of artificial intelligence in retail industry. AI is being used in retail sector for accurately predicting demand and managing inventory levels accordingly. Yes, demand forecasting is one of the best use cases of AI in the retail industry.

On evaluating market trends, AI applications in retail can accurately predict product demand and help retailers maintain a proper level of stock. Hence, the use of AI in retail ensures minimized storage costs, demand-aligned stock, less wastage, and overall optimized operational flows.

#5. Supply Chain Visibility

It is one of the best applications of AI in retail. Uses of AI in retail for improving supply-chain visibility is a hot topic in the industry. Starting from the store location and logistics to distribution centers, AI and IoT-powered software solutions helps retailers track and monitor their logistics and ensure product security and safe deliveries.

Further, AI use cases in retail for warehouse management is also another best approach for reducing product losses and optimizing the warehouse management operations.

#6. AI-based Virtual or Digital Assistants

AI has transformed how retailers interact with their customers. AI for retail, especially AI chatbots for retail is a buzz in the industry. Using AI, NLP, and semantic analytics, like techniques, AI chatbot applications or in-store AI robots are assisting retailers to provide quick and 24*7 support to their customers.

Further, in-store customer robots are also the best examples of AI in retail to discuss here. Retail stores are using AI-powered in-store navigation robots to improve the customers’ in-store experiences. Intelligent AI robots can understand user queries and provide useful information to customers regarding product location, stock availability, and many more.

Thus, AI helps retailers reduce the operational expenses that are spent on resources and take the customers’ shopping experience to new heights.

#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.

#8. Robotics In Retail

The benefits of AI in retail are uncountable and AI Robot is one of them. Artificial intelligence robots for the retail industry are the best assets for driving automation across processes and improve productivity and operational efficiencies.

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 retailers businesses.

Here are the best examples of AI 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

Herein, we’ve discussed only a few top applications of AI in retail. Cashier-less processes, sales forecast, market analysis, fraud prevention, and customer emotional analysis are all a few top AI use cases in retail sector.

Is your retail business is ready to adopt the true potential of AI? Get started!

Why Retailers Should Adopt AI?

The best answer is to stand on top of the digital competition. Besides personalized service offerings and next-level digital in-store experiences, AI apps improve productivity, enhance operational efficiency, optimize supply chain operations, increase warehouse visibility, and so on. To gain from all these incredible and advanced benefits, the implementation of AI in retail processes is the best solution.

Moreover, instant customer support, automated checkout, in-store navigations, and personalized product recommendations are all a few customer-specific advantages that retailers can offer to their customers on adopting AI-enabled applications.

As we discussed above, the applications of AI in retail offer outstanding business growth to retailers.

The Future Of Retail With Artificial Intelligence

AI in retail is expected to play a significant role in the coming years. Though it has taken the traditional operational ways to approximately 50%, the remaining transformation is yet to arrive in the coming years. Streamlining operations, automating processes, improving efficiencies, and offering next-level benefits as core advantages, AI will rule the retail industry in the years ahead.

The market research companies are also estimating that the impact of AI in retail is expected to report huge market value in the future. It is estimated that the market value of AI in retail will be expected to reach approximately $29.4 billion by 2028 from &7.3 billion in 2023. As most of the companies are observing profits with AI adoption in retail, the investments on AI are anticipated and thus, revenues will excel in the future.

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


The use of artificial intelligence in retail ensures a blushing opportunity for retailers. The adoption of AI apps makes retailers a strong competitor in the retail industry. Now, it’s your turn. If you are a retailer, redesign your retail store with AI software solutions.

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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    • Hello,
      Awesome article!! I really enjoy your article.
      AI has received increased attention in recent years. Innovation, made possible through the Internet, has brought AI closer to our everyday lives. I found this blog wonderful because of all the information about what AI can do for retail industry mentioned by you in this article are amazing.
      Thank you for sharing this informative article.

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