“AI is the new electricity” said Andrew Ng, computer scientist and co-founder of online university, Coursera. Artificial intelligence (AI) has indeed come a long way from being confined in the research laboratories or science fiction movies. It is a persistent reality in today’s world, which has permeated every layer of business, causing disruptions of unprecedented magnitude.
In such a short span of time, AI has an incredible impact in reshaping the entire retail landscape by boosting productivity, increasing accuracy and improving reliability of business intelligence.
AI and machine learning have already begun to make sweeping changes to the entire retail ecosystem. Spread across the supply chain, customer acquisition, shopping experience, purchase pattern analysis, and customer retention and loyalty, the value that AI brings to each aspect of retail is both intensive and revenue-boosting.
Consumers today are more self-aware, and demanding than any generation ever before. It is about “I want what I want when I want it”, which stands for personalized, targeted, omnichannel, ever-present market place enabled by the Internet. Businesses that understand this new paradigm and deliver, are the ones that are going to win.
By increasing customer awareness of a brand, and informing the brand about its customer personalities and behaviours at a granular level, AI enables fulfilment of customer desires by accurately analysing consumer behaviour. AI helps engage consumers by producing targeted content and curated lists, which all help sell well, faster, and in bigger volumes to improve the bottom line.
Traditionally, AI has been applied in retail in the realms of customer segmentation, inventory management, recommendations, campaign management and in creating insights. The evolved AI of today helps retail companies in doing much more such as enhancing inventory management, enhancing targeted recommendations, and keep churning out sticky content that makes customers visit, and eventually, buy.