Power of AI In Retail Sector
Artificial Intelligence (AI) is making inroads into almost every modern industry, and retail is no different. A published study predicted that by the year 2023,
The retail sector would typically spend $12 billion on AI. There realistically are several possible reasons for this, but majorly it is because this advanced technology helps in progressively improving productivity while decreasing operational expenses.
In recent times, the ai in retail sector has undergone a drastic change and therefore it becomes imperative on our part to understand and carefully examine its various elements. Given the fact that customers are inclining towards AI-enabled solutions, like digital assistants, chatbots etc, the rise of AI has presented several opportunities to the sector.
In this modern era of artificial intelligence and big data, AI will assist retailers to become smart so that they can provide the most efficient services to their customers which will directly help retailers to gain a more proper understanding of consumer needs.
AI can handle extensive data from various sources, including photos and videos. Apart from this, it can monitor customer behavior and reaction, which will transform the retail business, whether online or offline.
Besides the above things, AI can also assist in various specific areas in the retail sector. Below, represent some fields in which AI is undoubtedly playing a vital role.
1. Understanding and Predicting Consumer Behaviour
Knowing and predicting consumer behaviour/demand across interconnected supply chains is more important than ever, and we expect AI technology as an essential component in it. Retailers can use real-time cloud technology to properly evaluate various contributing factors affecting consumers’ behavior. Retailers will forecast behavior of the customers and carefully tailor their purchasing experience as per their specific need.
For example, Amazon uses a recommendation engine and made 35% of its income through it. The practical algorithms look into a customer’s prior behavior and recommend them accordingly.
2. Reducing Wait-Time At Counters
Using artificial intelligence in automated self-checkout systems has been the most inventive upgrade to existing self-checkout processes. AI-enabled solutions will not only make transactions faster but also dissuade fraud.
Implementing AI-based technology can save a lot of time and effort. It will also help in reducing the operational cost by lowering staff salaries. Some of the successful retailers like Amazon have already adopted this technology. Apart from it, Decathlon and Mc Donalds have installed automated checkout machines too.
3. Availability Of Virtual Trials
A new trend of purchasing, particularly during a period of economic uncertainty, provided this modern technology a significant boost. These virtual trial rooms help clients reduce time, money, and travel expenditures by allowing them to select genuine products in just a few minutes from anywhere.
Several retailers like Levis, Gap and others installed AI scanners and received enormous sales within the same customer base.
4. Inventory Optimisation
AI is also used to calculate how much of each commodity’s items depending on the warehouse location, season, and city should be stored. AI then adjusts the quantities of optimal stock.
A leading retailer, H&M uses AI to place popular goods in stock. The algorithm informs the shop about which items are necessary in specific locations in order to advertise and distribute more products.
5. Logistics, Transportation, and Delivery Management
The way the retail business handles logistics and transportation has already been altered by AI. Self-driving cars, robot delivery, intelligent route planning, and drones are just a few of AI’s fascinating new advances.
6. Store Layout Management
Retailers can improve retail shop design and layout with AI. AI can assist to customize the layout of retail establishments in order to increase consumer happiness and sales.
7. Media Optimisation
Retailers’ engagement with digital media is growing because of AI. AI is assisting the retailers to execute campaigns on both paid and free media outlets, such as YouTube, Facebook, and Google.
Through the above applications, customers will be more likely to engage in shopping activities. Apart from this, customers will benefit from speedier and more intelligent shopping assistance, resulting in more effective and efficient purchasing selections.
How Anolytics is contributing to this revolution.
We provide unrivaled image annotation services by using a targeted strategy and advanced tools and technologies to build a quality and sucessfull AI-based model. We use enhanced technologies that function at the pixel level with sophisticated algorithms to do accurate image annotation for retail.
We annotated images and videos using Bounding Boxes or 2D and 3D Cuboids for precise object detection. Apart from these annotating methods, we additionally use Semantic Segmentation, Polygon, Landmark, Polylines.
When clients outsource image annotation services from Anolytics, they get a cost-effective solution that assists them to keep their project costs down while maximizing productivity.
Ref. Link : anolytics.home.blog/