If you run a retail business, your number one reason for staying in business is to generate profitability. And before you can be profitable, you must master how to work productively and efficiently. Luckily, you have artificial intelligence or AI on your side.
The digital transformation of the retail industry has been happening for years. It has increased speed, efficiency, and accuracy across all aspects of retail, thanks in large part to advanced data and predictive analytics systems helping businesses make data-driven business decisions. Research shows that the global retail AI market is expected to grow from just under $5 billion to more than $30 billion between 2021 and 2028.
If you are into the retail business, then your better option is to implement AI in retail.
AI in retail has equipped businesses with high-level data and intelligence that is being leveraged for improved retail operations and new business opportunities. The question is, how exactly is AI changing the retail industry?
- Automation
- Prevent loss
- Predict market demands
- Optimize the supply chain
Automation
AI automation gives the retail business the freedom that it requires to operate at a higher rate and efficiency. Automation can cover the repetitive and redundant tasks that were handled manually. It helps the employees to be free from monotonous tasks while helping them to get time for more important tasks. It also helps with calculations, data collection, data integration, task executions, campaign management, and much more.
Prevent Loss
AI has also become an important component of loss prevention, especially when it comes to self-checkout technologies. For example, AI is being integrated into self-checkout station scanning and video systems to gain insights into how theft occurs. The AI is designed to show suspicious transactions or even alert your staff to shoplifting that may be happening in real time. Apart from theft prevention, AI can also determine the income and expenditures of the retail business and help identify the expenses that are making a loss too.
Predict Market Demands
AI in the retail business makes it easier for you to predict future customer and market requirements, allowing you to better meet your customers’ needs. For example, AI can help you view past consumer behavior patterns and then make predictions about future behavior. You can also find out which areas of your physical store hold customers’ attention for longer periods of time.
If you run an online business and no physical store is open to the public, AI can also give you information about your website traffic and user demographics. This data can help you make informed decisions for marketing campaigns. The data obtained can, for example, help you to tailor your next advertising campaign so that it best suits the interests and needs of your customers.
Optimize Supply Chain
AI can help you optimize your store’s supply chain. For example, AI can examine the purchasing behavior of your previous customers and inform you immediately when you run out of certain products. This is crucial because if your customers don’t know that you have the items they need when they need them, they may choose another store. And that means lost sales, hurting your bottom line.
AI can also tell you at what times of the year more customers will be asking for certain items. It helps you to stock up early rather than securing and displaying those seasonally popular items when customers start inquiring about them.