The retail industry has transitioned into a new world order. One of speed, personalisation and data-driven decision making. Customers now expect seamless experiences, competitive prices and the ability to find what they want, when they want it, whether they are on the floor of a store or online. In order to meet these expectations, companies must fundamentally change how they run their retail operations, beyond what we have traditionally done in the retail space. This is where AI (artificial intelligence) comes into play.
Artificial Intelligence isn’t part of the future anymore, it is part of the present. It is a pillar of retail transformation. AI is shifting retail stores’ operations and customers’ shopping habits from understanding customer purchases to inventory optimization and loss prevention. This article will explore how AI is useful for retailers, the necessity of AI for retailers, and how IndoAI has become a leader in providing AI-based solutions for the retail industry.
AI’s implementation in retail is about increasing rather than replacing human intelligence. Store managers, sales associates, and supply chain teams, now able to make timely, intelligent decisions bolstered by real-time understanding, have never had such an advantage.
Retailers using AI have the opportunity to improve operational efficiency, decrease costs, as well as create personalized experiences with higher likelihood for customer return. Predictive analytics can track demand patterns, walking the fine line of calculating when to stock product, while dynamically repricing to be competitive.
When we look for evidence of AI in retail, one of the most observable benefits of AI can be seen in what we call the customer experience. The ubiquitous AI recommendation systems that we often see drive our buying experiences online are now creeping into physical stores through interactive kiosks and smart displays.
These AI systems can analyze not only the products that a customer has bought in the past, but their in-store movements and gesture and facial recognition (with consent) to present customized offers and product suggestions in real time. Bloomaauf creates a curated shopping experience, allowing the customer to feel unique and recognized.
For example, say a shopper enters the store and instantaneously, they receive a mobile notification indicating a discounted price on an item they had accessed online a week previous to their visit. The personalization characteristics of this shopping journey would have lacked significance altogether without the function of artificial intelligence as a bridge between various channels of data.
For retail stores, having the right product at the right time is crucial. If a store has too much of a product, it limits cash flow and can lead to waste. If a store does not have enough, it will result in lost sales and unhappy customers. Artificial intelligence (AI) overcomes this problem by predicting demand with phenomenal accuracy.
AI systems are able to use historical sales data, seasonality, local events, and even weather forecasts to predict when and what products you are going to need. This will allow stock levels to be optimized, reducing inventory surplus and reduces stock-out situations.
In addition, AI powered supply chain monitoring tools can track products while they are in transit – being able to see what shipments or orders are delayed or disrupted before they affect your store functioning. A seamless flow of goods from warehouse to shelf!
Retailers face theft and fraud costing them billions each year, and traditional CCTV systems still use manual monitoring that is inherently slow and subject to human error. The introduction of smart cameras powered by artificial intelligence totally revolutionizes the concept of traditional CCTV cameras by providing the capability of detecting suspicious activities as they are happening.
IndoAI Smart cameras can identify unusual behaviors, such as a person standing too long in front of a specific department, or hiding items on their person, and can send alerts to store security in real time if flagged for suspicious behavior, to address the risk or concern in the act. Not only does this prevent losses, but it also improves the overall safety for the team and customers in the store.
Finding the right pricing can be a tricky business. Set a price too high and customers walk away; set it too low and profit margins are compromised. AI can offer dynamic pricing by assessing competitor’s prices, demand, and stock availability in real-time.
Retailers can adjust their price instantly, staying competitive while retaining profit. AI can also identify which promotions work best, ensuring promotions and discounts target customers who will respond with those promotions.
Given this strategy, every price tag, and every promotion were backed up with data, and not guesswork.
AI is even impacting the layout of store formats. By monitoring consumer behavioral movement patterns in a store with how they engage with product, AI can recommend where to best place products and how to organize the aisles.
AI-powered cameras and the heat maps they create can demonstrate which store sections received the most attention, thereby allowing retailers to position high-margin (and often lower moving) items in those high-traffic, high-engagement spots. In time, it can fine-tune sales performance while simultaneously increasing customer experience.
IndoAI has differentiated itself from other technology providers by moving past the AI buzz words, into real world use cases, by focusing on edge AI. Edge AI enables smart cameras and analytics systems to add intelligence directly to the store floor, e.g. without continuous cloud connectivity.
Instead of further explaining what edge AI means, and the benefits of this product, it is better to emphasize that IndoAI’s AI-powered smart cameras and analytics systems, in real time can visualize customer behavior, monitor inventory levels, and prevent theft, all with guaranteed security and privacy.
Key IndoAI Smart AI Camera advantages for retail stores are:
In the past, AI in retail was seen as a luxury for large corporations. But, today, it is a necessity for businesses of all sizes.
Retailers who adopt AI gain:
The capabilities of AI will continue to grow. Future AI-powered retail innovations may include:
IndoAI is already developing next-generation solutions to meet these emerging needs, ensuring their retail partners remain ahead of the curve.
Artificial intelligence (AI) is more than a technology trend; it can be transformative for retail stores. AI makes the customer experience more productive, helps to optimize inventory, losses will decrease, and smarter pricing can be exercised! AI is designed to make measurable improvements, Retailers can expect high-efficiency, high-customer loyalty, and high-profitability from an implementation of AI.
IndoAI keeps pushing the envelope on what edge AI has to offer retail, in a world where AI, typically is neither simple, nor cheap, there’s always a better way!
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