Artificial Intelligence, driving retail transformation
In today’s economic landscape, where competition is fierce, and consumer expectations are constantly evolving, artificial intelligence (AI) is emerging as a catalyst for change in the retail sector. This innovative technology is pushing back the boundaries of the shopping experience, enabling companies to stand out from the crowd and build customer loyalty. But that’s not all. It also enables companies to facilitate the work of their employees and create new opportunities for themselves.
Artificial intelligence: revolutionising the customer experience
Understanding consumer trends and behaviour
In a world where data is the new currency, AI offers retailers the ability to decipher their customers’ preferences and buying habits. By analysing data from social networks, shopping histories, and online interactions, AI can accurately segment customers and create detailed profiles.
Take the example of My Jewellery, a Dutch clothing and jewellery brand. Using a decision tree based on machine learning, this brand has made data collection fun by inviting its customers to respond to a series of choices. Each decision taken is analysed by the AI to establish personalised style profiles, offering a made-to-measure shopping experience.
Using data to personalise your offer
AI is not just about understanding consumers, it is also about uniquely personalising the offering. By exploiting customer data, machine learning algorithms identify the products likely to be of interest to each individual, paving the way for relevant, targeted recommendations.
- Intelligent recommendation engines analyse preferences, purchase histories, and market trends to suggest items that are complementary or similar to those consulted.
- AI-powered chatbots offer an interactive shopping experience, responding instantly to customer queries and offering products tailored to their specific needs.
- Marketing campaigns benefit from increased personalisation, thanks to AI’s ability to segment audiences and deliver the right messages to the right people at the right time.
Predicting purchase intentions for an effective marketing strategy
Optimising the work of employees thanks to AI
As well as enhancing the customer experience, AI makes it easier to carry out low-added-value tasks, enabling staff to focus on what’s essential to their job.
Accurate and reliable sales projections
By analysing historical sales data, market trends, and external factors, AI models enable retailers to produce reliable and accurate sales forecasts. This information is invaluable for better management of production orders, optimal planning of in-store deliveries, and the development of effective marketing strategies.
Intelligent stock and supply management
AI enables retailers to optimise their stock levels and supply processes. Taking into account sales history, current stocks, market trends, and promotions, algorithms accurately calculate demand for each product. Some advanced AI models even predict price changes from suppliers, recommending the best time to restock and reduce purchasing costs.
Optimising delivery routes and reducing lead times
Data and AI are also used to optimise delivery routes and pick-up times. By analysing orders, sales, and delivery times, AI systems identify the most efficient routes, reducing transport costs and delivery times.
Optimising shelf audit
Artificial Intelligence can also be used to collect product data in-store. By simply filming the shelves with the camera on a smartphone or tablet equipped with an image recognition application, the sales force can quickly collect and analyse reliable data in just a few moments.
The EasyPicky solution is based on offline video image recognition. It enables staff to walk the aisles of a shop, collect all the data on the ground, and obtain all the key performance indicators. This technology considerably reduces the time needed to analyse in-store performance, enabling sales teams to concentrate on the added value of their work: selling and negotiating.
Designing Conversion-Oriented Products
Computer-Aided Engineering and Machine Learning
Enhanced by AI, computer-aided engineering (CAE) offers manufacturers new perspectives. By exploiting market trends, consumer preferences and customer feedback, machine learning (ML) algorithms suggest original ideas and innovative solutions to complex design problems.
Thanks to these AI-based design tools, retailers can push back the boundaries of innovation and create conversion-oriented products that perfectly meet their customers’ expectations.
Anticipating consumer trends and preferences
AI not only analyses existing data, but also anticipates future consumer trends and preferences. By studying online interactions, buying behaviour, and weak signals, machine learning models identify emerging trends and new market expectations.
This ability to anticipate offers retailers an invaluable competitive advantage, enabling them to design products that are in line with their customers’ desires even before these are fully expressed.
Meeting ethical and environmental challenges
While AI offers many benefits for the retail sector, its adoption also raises ethical and environmental issues that must be taken into account.
Protecting consumers' privacy and data
The growing use of AI in retail is raising legitimate concerns about the protection of consumers’ privacy and data. Retailers must ensure that their practices comply with current regulations and guarantee transparency regarding the use of personal data.
Dedicated ethics committees can be set up to assess the risks associated with the use of AI and ensure that consumer rights are respected.
Reducing Retail's Environmental Footprint
Towards a connected and personalised future
Artificial intelligence has already revolutionised the retail sector, but its potential is only just beginning to be realised. In the future, AI, augmented reality, robotics, and blockchain technologies will have a huge impact on consumer buying behaviour and the way companies sell their products.
To remain competitive in this constantly changing landscape, retailers will need to stay at the forefront of technological developments and continually adapt to the new codes of commerce. Those who can exploit these innovations while taking care of the environment and respecting consumer rights will have the best chance of thriving in the highly competitive retail industry.
