Close Sidebar
The Financial Gazette
The Financial Gazette
The Financial Gazette

Input your search keywords and press Enter.

Home Tech The Potential Of Artificial Intelligence In The Retail Market
Tech
January 21, 2019

The Potential Of Artificial Intelligence In The Retail Market

Print
EMail
AI, machine intelligence

With the advancement of scientific technologies, we have come across a various scientific contribution in recent times. This scientific approach has surely influenced human nature and with recent studies show that the decisions we make are influenced by the technology around us. A strong example of this is the retail industry and the latest integration of Artificial Intelligence. The impact of artificial intelligence on retail purchases can strategically be seen in various segments of the retail industry.

For more than a decade, we have seen the retailers collecting customer transaction information through point of sale system which has now become a reliable and easy to access transaction medium for the customer. It ultimately shows the (effective) retailers attempts to influence the behaviour of customers.

Since now the science has overcome the retail industry which helps the retailer to target their customers, with the help of AI they are able to interpret the existing data whilst opening their grounds to more customers with unlimited marketing tactics and go a step further by influencing them to make a purchasing decision with them.

  • The use of artificial intelligence in retailing stores:

It is speculated by many AI specialists that there are endless opportunities; in retails, many forms of artificial intelligence are used such as Aloha POS. Tractica’s -marketing firm- worldwide revenue from AI is supposed to increase tremendously by the year 2025 from $643.7 million in 2016 to $36.8 billion. This is a massive kind of jump which is not shocking for anyone since the use of AI technology offers alternatives of job creation to multiple industries. In the same period of time, it is expected that 7% of US jobs will be soon replaced by AI and automation. It also indicates that the retailing organizations can reduce the labour costs significantly and increase efficiency. As of now how is this latest technology making an impact truly on the retailing industry? On customers, the retailing companies have massive amounts of data such as their shopping experiences. The only problem thus far is that big data collection is not easy to analyze for smaller companies which leads to large amounts of this useful data being discarded and conversion rate being only 2-3%.

On the other hand, the use of AI technology is likely to change this for many companies as the data is used for the creation of online shops which gather the data of customers and give them targeted shopping experiences; there are several online chat boxes which respond to queries and assist customers. Also, in-store intelligence is used to make a more interactive experience. The web businesses tailoring their products and marketing are based generally on the purchases customers have made in the past, online search habits, number of clicks, gender, age and some other variables using algorithms of self-learning can take the lost customer back and make their experiences more intimate and effective. As a result of this, companies make more online sales and offer more products to their online retailing stores.

Along with the automated individual chatbot assistance, during shopping, the customers are likely to receive targeted marketing campaign. To generate the responses the current chat boxes generally rely more on specific keywords and phrases. On the other hand, as the machine learning is advancing, chatbots in new form will be able to answer more complicated questions and self thinking will also be deployed in future on the retailing online sites.

  • Integration of AI in marketing:

According to AI review, by integrating artificial intelligence in marketing, the retailing online companies are able to take sets of bigger data and use them more beneficially. Far more targeted ads will be made by companies which could be different per store. By region, these ads will be able to focus on the big sellers, the marketing needs and the things which are no longer needed in their production line.

The physical retailing stores along with online stores and marketing departments could change with the help of AI technology. For example, if you are moving to the local Lowe store next time, there is a possibility of finding a customer friendly robot in place of a worker. The staff replacement has already started taking place in Star bucks as the staff is being replaced with automated machines which are used in making the consistent drinks and in this way the customer’s serving time is reduced as well.

In the physical retailing stores the retail robots could be the future. Robots can answer much-complicated questions and as a result, customers also feel comfort in asking dumb questions or excessive questions. These robots eventually will be able to perform a wide variety of tasks and make use of retailing information.

Author Bio

Jane Collen is a passionate writer who lives and breathes on the internet. She is a tech-geek and love to explore new opportunities. She is currently dedicated to CheapBills. While Jane is not writing or ranting about newest tech industry gossip, you can find her practising her yoga and photography, making documentaries.

The post The Potential Of Artificial Intelligence In The Retail Market appeared first on Techzim.