Artificial intelligence (AI) has revolutionized numerous industries, and the retail sector is no exception. Long overwhelmed by massive amounts of untapped data, the retail industry has found a solution with the advent of AI. Retailers are increasingly adopting sophisticated AI-based tools to collect, analyze, and leverage this valuable data. This transformation has allowed businesses to uncover new insights and optimize decision-making, as well as their commercial and marketing strategies.
The Arrival of AI in the Retail Sector Delivers New Insights
For a long time, the retail sector struggled to handle enormous volumes of unexplored field data, unsure of how to collect and utilize it. However, the arrival of AI is changing the game. Over the past several months, retailers have been equipping themselves with increasingly sophisticated AI systems to collect and harness data. Receipts, shelf sensors, stock data, and consumer reviews—these sources are now being collected, sorted, and analyzed by AI algorithms to extract valuable information for decision-making and the implementation of commercial and marketing actions.
While the retail world is gradually embracing AI, skepticism still exists regarding its ability to handle and analyze large volumes of data. However, AI’s capacity for performing repetitive tasks surpasses that of human intelligence. Once trained, AI can collect and process millions or even billions of data points without showing any signs of slowing down. AI works 24/7, never tires, and makes only minimal errors. These capabilities enable retailers to swiftly collect and process data for hundreds of products. This 360-degree view of retail points of sale gives businesses the ability to identify weak signals that they might have otherwise missed. For instance, in the 2010s, a period when AI was not yet democratized in the industry, many retailers failed to realize consumers’ interest in organic products or solid shampoos. These trends can now be easily identified with the rise of AI. In 2020, thanks to AI-driven analysis of field data and resulting in-store actions, solid shampoo sales increased by 14%. These products became much more visible and prominent in the aisles of major retail stores. AI helps retailers select product categories to highlight at the right time. AI constantly processes and analyzes new types of data to offer consumers products that best meet their needs.
Defining the Purpose of Data to Limit Collection to Necessary Information
While data collection has become effortless with AI, it is still preferable to identify the purpose of the data in advance. Such an approach not only narrows the scope of collection but also ensures compliance with regulations like the General Data Protection Regulation (GDPR), which requires collecting and processing only the data necessary to achieve specific objectives. By predefining the purpose of data, the justification for collection becomes easier, and only the necessary data is targeted.
By leveraging data, retailers gain a more detailed understanding of sales and consumer behavior. With this information, they can tailor their commercial and marketing strategies to local needs.
Through the collection of field data using AI solutions, professionals can elevate their work in retail spaces and take on new responsibilities. With sophisticated AI tools, they are now capable of collecting and leveraging massive volumes of data to make informed decisions. Furthermore, by defining the purpose of the collected data, retailers can not only comply with current regulations but also focus on relevant information to achieve their objectives.
As we advance into the era of AI in retail, it is crucial for industry professionals to stay updated on the latest technological advancements and continue to extract knowledge from data. By using AI ethically and responsibly, retailers can optimize their performances, meet consumer expectations, and shape the future of the retail industry.
In conclusion, the introduction of AI in the retail sector has opened new perspectives and provided valuable insights. By seizing these opportunities, retailers can transform their business approach and effectively adapt to an ever-evolving environment.
*source : https://www.lsa-conso.fr/les-cosmetiques-solides-en-pleine-effervescence,410756