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.

Conclusion

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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know more about Retail AI

Top Use Cases of Artificial Intelligence in Retail Industry in 2024

The retail industry has been struggling with rapidly advancing online shopping over the past decade. The retail industry is facing waves of business change with online retail operations.

Along with the rapid growth of the online retail business, the COVID pandemic also impacted the retail industry. It is why global retailers are looking to transform their business with Artificial Intelligence in the retail industry.

Role Of AI In Retail Industry

Artificial Intelligence in retail industry automates and adds value to traditional retail operations. From in-store assistance, price predictions, and product categorization to inventory tracking and supply chain management and logistics, the role of AI in retail industry is incredible.

According to a survey among retailers, 80% of revenues will generate from AI by 2023. AI in the retail industry offers efficient performance than ever before.

Like healthcare and manufacturing, the retail industry is the next fastest-growing sector. It has changed tremendously in the past two years. By using advanced artificial intelligence (AI) and machine learning (ML) technologies, retailers are improving customer satisfaction levels.

How is AI used in retail?

Artificial intelligence is powering the modern retail industry. Before the COVID-19 pandemic, nearly 80% of buyers are used to buy goods in physical stores. But, post-pandemic, physical stores are hampered with weak sales. Customers are likely to get their products through online grocery or e-commerce apps.

In this article, we tried to give you a brief on how a physical retail store could ramp up using AI?

The role of AI in retail industry will improve the in-store shopping experience of visitors. AI and machine learning in retail offer a safe and personalized shopping experience to customers. They create a more engaged business in this pandemic. Besides, using AI technology in the retail industry, retailers can easily connect their retail locations digitally. Further, AI tools in retail acts as bridges between physical and virtual sales units in real-time.

USM’s retail mobility solutions improve business transparency and customer reach.  Our in-store AI services for the retail industry help you manage inventory and customer assistance smarter.

Thus, AI in the retail industry creates a bunch of opportunities for retailers in the future. In the below session, we compiled the best use cases and benefits of AI in the retail industry.

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AI Use Cases In The Retail Industry

How can AI impact Retail?

Are you a retailer and facing troubles in running the business in this AI world?

So, the use of AI in retail sector will transform your retail business in the biggest ways. Take a look at a few significant uses of AI in retail sector.

Top 5 Uses Of AI In Retail Sector:

#1 Product recommendations to customers according to their search history

The use of AI in Retail sector for sending product recommendations to customers has become a trend and sales tactic for retailers.

AI in retail analyze the vast amount of customers’ data and extract patterns from their purchases and preferences. It helps retailers automatically send personalized recommendations to customers.  Such automation in business improves conversion rates, order values, and customer satisfaction.

USM will deliver such AI mobility solutions for retail that provide a personalized store experience to customers.

AI systems using ML techniques execute processes to analyze the purchasing patterns of the customers. Generally purchasing patterns of customers are categorized based on their preferred products, brands, cost, etc.

#2 Value-added Customer Service to Attract More Customers

It is one of the best Use Cases of AI in Retail that takes retail businesses to new heights in 2022. Based on the product quality, pricing, delivery, and response services, customers build their trust in a brand and revisit the store.

Brand awareness plays a vital role in attracting more customers to the store. Retaining old customers and attracting new customers is your brand is a buzzword in the market.

Moreover, quick response to customers also improves the in-store traffic as it shows the responsibility towards customer queries.

AI-enabled in-store assistants build a strong communication channel through which customers can get answers to their queries. AI-powered digital assistants are the best examples of AI innovation for the retail industry.

What to know more about NLP? : A Brief on Natural Language Processing Technology

#3 Demand Prediction & Management

Identifying the demand for products or services is one of the key strategies for business development. AI applications will help retailers in many ways, and demand prediction is one of the best use cases of AI in retail.

There are multiple benefits in predicting the demand for a product. AI-powered demand forecasting strategies help inventory managers to maintain products with respect to demand.

AI and ML methods help to perform accurate demand prediction. They also help to understand the seasonal trends. Hence, retailers can avoid stock-outs by predicting demand.

AI In Retail: What Artificial Intelligence Can Do For Retail Industry?

#4 Pricing Strategy

It is one of the best applications of AI in retail. Product pricing is one of the most challenging tasks for retailers. Before pricing, they should know the product price in the market.

Customers always opt for a product with a low price. It has been shown from several studies that customers wait for the time for a price drop. Also, they wait for arriving for the product at an ideal cost.

Yes, sometimes, this strategy will give positive results in sales. Artificial intelligence applications for retail are useful to fix the best product price that attracts customers.

Integration and implementation of AI in the retail sector are beneficial in analyzing competitor pricing strategies and helping you to set the best price for your products. So, without giving you weaker sales, AI models in retail ensure profits in terms of reasonable pricing.

#5 Personalization

The impact of AI in retail sector on improving store personalization and customer satisfaction is high. AI and ML technologies in retail stores allow retailers to understand and analyze the buying behavior of the customers. Thus, it helps retailers provide a better personalized in-shop experience to customers.

Future Of AI In Retail Sector

The retail industry has already witnessed the power of AI through in-store robots. The impact of artificial intelligence in retail in the future of retail business cannot be imaginable.

As we discussed in this article, AI has been already used in many ways in retail today. The adoption of AI applications in retail is expected to reach the sky limit in 2022 and the years ahead.

Here is a crystal-clear pictorial representation of which use case of AI in retail has higher demand and growth in the future.

Source: Statista

The scope of AI in retail in these areas would be promising in the next coming years. So, the future of AI in retail sector will be promising. The AI investments in retail for augmenting customer care services, improving personalization, and enhancing inventory management functions.

Further, AI will also help retailers better predict and manage their in-store customer needs, track their emotions, deliver personalized services, and achieve higher satisfaction levels.

Moreover, the impact of AI in retail sector will also expected to be high in balancing supply and demand operations to ensure better business values.

Accordingly, 90% of online e-commerce websites or marketplace apps are also integrated with AI Chatbot and microphone-like features. These innovative features of AI in retail apps make online services more convenient to use. Virtual AI Chatbots will respond to customer queries with 99.9% accurate responses and increase their satisfaction.

Hence, the use of AI in retail sector will ensure a higher level of customer service and increase brand credibility.

All the above-discussed applications will drive the market value of AI in the retail industry. According to the research reports, the market size of Artificial Intelligence in retail is expected to reach USD 31.2 billion by 2025 from USD 4.8 billion in 2021.

Conclusion

All the above use cases of AI in retail are acquired maximum share across the retail industry. These AI applications offer profits and brand image for retailers. By analyzing the above metrics, we can strongly compile that AI transforms the retail sector in the near term future.

Are you a retailer? Would you like to attract more customers to your store?

Get in touch with USM AI experts! Our AI Experts bring your AI projects for retail into reality.

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