AI-Powered Technology is Fundamentally Changing Retail
As AI-powered technology continues to evolve, we can expect to see even more innovation in the retail space in the years to come. Here are a few examples of what AI is doing for retailers and customers:
Personalisation: AI algorithms can analyze large amounts of data about customers' behaviour, preferences, and purchase history. Meaning personalisation can be taken to new heights. With 80% of customers choosing brands that give them a personalised experience, this is one of the biggest reasons to adapt to AI tech.
Inventory management: AI helps retailers optimise their inventory levels and avoid stockouts by using machine learning algorithms to forecast demand and adjust inventory levels accordingly. Helping retailers reduce waste, improve efficiency, and ensure that popular products are always in stock.
Returns: Like many fashion retailers ASOS reported in their annual report that returns are a big issue. AI goes a long way to help, through better accuracy of product recommendations, the utilisation of pop-ups and experiences that will better ‘describe’ what the customer is about to buy amongst just a few.
Customer service: AI-powered chatbots and virtual assistants can help retailers provide 24/7 customer service and support, handling routine inquiries. 68% of consumers like chatbots because they provide quick answers
Pricing: AI algorithms can analyse pricing data from competitors and adjust prices in real-time to remain competitive. 53% of fashion shoppers have said they’ve walked out of stores because prices didn’t match those online.
Fraud detection: AI is helping retailers detect and prevent fraud by analysing patterns in transaction data.Overall, AI is helping retailers to better understand their customers, optimise their operations, and provide more personalised and efficient shopping experiences. We are stepping in with many high-street brands to ensure their AI technology is delivering and watching the changes it brings to their growth is very rewarding.
We look forward to a future of AI-powered efficiency.
Steve Dennis
