AI Trends In Retail
AI Trends In Retail: Artificial intelligence in the retail industry is a move that will improve the lifestyle of online shoppers
It is believed that in the future, the retail sector will face an irreversible decline. This is linked, first of all, with the increasing popularity of e-commerce. In the UK, 85,000 jobs vanished from the retail area in the first quarter of 2018, and about 30,000 retailers announced important economic disasters.
Despite a somewhat negative overall picture, global retail income remains to increase, up 4.1% year-on-year in 2018. And even with the increasing pace of e-commerce, 85 to 90% of purchases are however made in brick-and-mortar shops. What is the role of artificial intelligence in that including how is technology affecting the rapidly transforming retail sector?
According to experts, AI is not a global problem, but the use of artificial intelligence in retail industry is most often hampered by the issues of regulating the
system itself, their technical side. The current fear is “will retail trade disappear altogether?” experts dispel. A person will always want to buy something, which means that retailers will not be left without work.
The main AI trends in retail, their pitfalls
The transition of customers to online shopping has not yet reached such a scale as to cause concern. It is known that 85% of trades are yet made in brick-and-mortar stores. This is because buyers prefer to examine and touch in detail what they are buying. And most hypermarket customers simply enjoy being in the market.
Another disadvantage of eCommerce is that not every customer need can be met online. It is for this reason that some of the online sellers have opened not only online stores, but also ordinary ones.
Automation and artificial intelligence
In popular retail, the price of making sales has increased significantly:
- estate taxes are growing, as is the price of living, which means that business owners spend more money on payments to each employee;
- investments in artificial intelligence technologies will help solve these problems. This approach will let you more efficiently handle the staffing table, create automated warehouses, and attract chat bots to work.
Without converting an existing business to digital, the outlook for the next 5 years will not be bright. Digitalization also has negative sides, for instance, the necessity to restructure the support throughout new data. Some retailers use outdated accounting systems or many ways in each property in the connection. In this case, the main task is to collect data in a single repository.
Long-term prospects for using AI
If we talk about artificial intelligence as a business tool, then this project is long-term, and it will not start to bring profit immediately. This is a big problem for business, because it is necessary to take into account the costs of maintaining intelligent systems, update software as needed and, possibly, pay for the work of IT specialists.
Using AI to predict demand: a huge plus for retailers. This tool significantly affects the business, because thanks to it, you can save on costs when ordering certain goods or change the assortment to a more desirable one for the client.
A retail business with the right leadership and mindset can thrive with AI, but it must first create a culture of AI-powered decision-making for itself. In today’s competitive landscape, retail leaders must consider the real impact that implementation of such decisions could have on companies. In addition to cutting costs, AI can provide invaluable audiences, engage customers, and accelerate sales. No other technology currently promises to keep retail as AI.