The digital transformation in retail is accelerating at breakneck speed. It has increased efficiency, speed and accuracy across every branch of retail business, thanks to advanced data integration and predictive analytics that are enabling companies to make data-driven decisions
But none of those insights would be possible without artificial intelligence (AI). AI-enabled technologies empower organizations to gain insights from all the complex, bi-directional data to improve retail operations, improve ease of doing business and unlock new business opportunities. Ergo, retail companies that want to improve outcomes should look no further than AI. O’Reilly forecasted that 39% of organizations in the U.S. are leveraging AI-powered solutions to drive their business forward.
Current Uses for AI in Retail
The term ‘artificial intelligence’ encompasses a lot of technologies, including machine learning and predictive analytics, that can garner, process and analyze massive amounts of data and use the insightful information to empower retailers to make good business decisions.
These technologies can act autonomously and leverage advanced analytical capabilities to convert raw data collected from IoT and other data sources into valuable insights.
Lots of modern data integration solutions have built-in AI data mapping capabilities that help users map data and further integrate data securely, easily and rapidly. These next-level solutions can use the data to glean actionable insights about myriad market demographics and improve various touchpoints in the business.
How Can AI Transform Retail?
In the current time of disruption, the retail industry is focused on data-driven retail experiences and fulfilling increased consumer expectations. However, it’s not an easy feat to deliver a personalized shopping experience that is relevant and valuable. Only the retailers that are able to reimagine their ways of data integration and innovate their retail channels will set themselves apart as market leaders.
So, what does that look like? Here are some examples of how AI is reshaping the retail industry.
Faster, Accurate Data Integration: AI can enable all business users to accurately map, integrate and analyze complex data streams at speed and scale. AI-enabled technologies actually play a central role in streamlining the data mapping and data integration process. And when even a non-technical user can do that, the benefits get doubled. How?
Suppose a non-technical user can leverage AI- and ML-powered solutions to map data through predictions without the need for IT teams to perform complex custom coding and EDI mapping processes. That saves a lot of time and effort and enables IT and developer teams to focus on more high-value tasks instead. Thus, AI-powered solutions not only allow business users to harness the true potential of data but also empower IT users to drive strategic, innovation-driven tasks.
Improved Inventory Management: AI is opening new doors for forecasting. By mining insights from partner data, AI-enabled technologies can help retail companies predict industry shifts and make proactive changes accordingly. This also makes a huge impact on supply chain operations and companies’ ease of doing business.
Personalization and Improved Customer Insights: AI enables business users to glean insights with speed and accuracy. AI-enabled technologies empower businesses to consolidate data and handle siloed data to make better business decisions and drive value.
Stores are also using AI and machine learning algorithms to understand what a customer might be interested in on the basis of various aspects like demographic data, social media behavior and purchase patterns. By using these powerful insights, retailers can ensure personalized experiences both online and in stores.
Better Outreach: AI-powered systems boost retailers’ ability to understand consumer behaviors and preferences through repeated interactions and use this information to deliver delightful customer experiences and, ultimately, grow revenue.
Improved Customer Experiences and Engagement: Using AI-enabled technologies, businesses can better comprehend customers’ requirements and deliver on them accordingly. As a company predicts the behavioral trends of their customers, they can increase engagement and success with customers.
AI can help businesses unlock the true power of data and drive digital transformation initiatives. And that’s how they can deliver better business outcomes.