Artificial Intelligence is an up and coming technology system that is constantly enhancing different aspects of various industries. Some of these new areas where Artificial Intelligence has made a positive impact include traffic lights, healthcare, marketing strategies and commercial security solutions. Artificial Intelligence has recently found its way into the retail world. From conversing with consumers to developing improved management strategies, AI holds a promising future for creating efficient consumer experiences and transforming management systems for retail stores.
Artificial Intelligence has the ability to mimic human characteristics. This can include human-like decision making processes as well as carrying out human tasks. In contrast to most humans, the intellectual capacities of these systems are unlimited. The capabilities of AI technology prove to be beneficial in the retail industry. Here are three reasons why retail owners should invest in Artificial Intelligence systems and how AI can change the retail industry for consumers.
Understand Consumer Needs
The most important reason why retail owners should invest in AI systems is to better understand consumer needs. Thanks to the digital age, 90% of the data accumulated in the world today has been created in the last two years. This can seem overwhelming and unrelated to retailers, however, this data is being created by valuable consumers. Understanding and interpreting this vast amount of data can lead to increased profits and other beneficial opportunities for retailer owners. Through natural language processing and machine learning, AI systems can access this data, illuminate its insights, and provide direction for retailer owners. AI technology can help retailers gain a better understanding of their consumers and tailor their products, designs, and shopping experiences around their unique needs.
Navigate Retail Sites Quicker
When shopping online to purchase a gift for a family member or friend, it can be tough to navigate retail sites in order to find the right present. This may be a challenge for some customers who are not familiar with all the available products that a retail site has to offer. With the integration of AI technologies, retail sites can provide their customers with their own personal shopping concierge. By way of asking questions, interpreting answers, and understanding sentiments, AI can suggest possible gift ideas to their customers and aid in their overall shopping experience. AI systems can also be used to help consumers as they shop for a specific product for a particular situation. For example, if a consumer is looking for a certain winter coat, AI systems would ask the consumer specific questions, such as weather conditions, consumer gender, activity type, and more to help the consumer find the right coat for their particular circumstance. In addition to learning from personal interactions with customers, AI systems study and interpret consumer buying trends and behaviors. This application of AI technology to retail sites allows consumers to engage with retailer businesses and find their purchases quicker.
Improve Inventory Management
A constant challenge that retailers face is maintaining an appropriate amount of inventory. Ordering too much inventory can be a waste of time and money on unnecessary items. Not having enough inventory can lead to a loss of potential customers who instead turn to other retailers to find their products. With the help of AI technology, these systems can monitor weather patterns, consumer behavior, and purchasing rates. After an analysis of these and other predictive trends, Artificial Intelligence provides retail owners with a better understanding of the world around them and allows them to make educated choices based on industry data. By incorporating AI systems, retail owners are better equipped to make informed decisions about their businesses.
As retail owners begin to center their business models around their customer’s needs, they will be able to cultivate loyal customers who actively engage with their brand. With the help of Artificial Intelligence systems, retailers can better understand their customer’s needs, help their consumers navigate their retail sites, and improve their inventory management. Retail businesses that incorporate AI technology will have an advantage over their competitors as they adjust their business to best fit their consumer’s needs.
