The global retail industry has been experiencing rapid digital transformation over the last few years. The pace of digitalization in the retail sector has skyrocketed ever since the onset of the pandemic in 2020, and the trend is expected to continue in future as well. Through this rapid digital transformation, the retail industry has experienced enhanced efficiency, speed, and accuracy in all operational aspects. This development can be attributed to advanced predictive analysis and data processing systems that are empowering company leaders to make policy-level decisions driven by data.
For several years, traditional data analytics have worked fine for the retail industry but even since the advent of Artificial Intelligence (AI) and Machine Learning (ML), this trend has been transformed. These technologies have brought forth new levels of data processing that deliver actionable insights. Data scientists are opening new worlds of possibilities for retail business owners through hundreds, if not thousands, of AU and ML learning models.
Growth of AI-Powered Solutions in Modern Retail
In the online shopping era, customers are always interested in personalized services and products. This is where AI in retail is empowering retailers to bring their offerings in sync with customer expectations. AI in retail is emerging as a disruptive factor across the value chain and has emerged as a potent tool empowering retail brands with a strategic advantage over competitors. The global retail AI market is pegged to reach $31.18 billion as of 2028, compared to $4.8 billion in 2021, with a CAGR of 30.5% during this period.
As per a report by IBM, as of 2021, the adoption of AI-based retail is expected to have reached an impressive 80%. This growth is being driven by aspects like an increasing number of internet users, the popularity of smart devices, government policies for digitization, and the requirements for monitoring at physical stores. AI and Big Data Analytics have emerged as crucial aspects of digital businesses where they possess the capabilities to transform business operations and customer experiences.
Popular AI Platforms Powering Modern Retail
The rapid transformation of the retail industry is being powered by various companies creating interesting AI solutions for modern retail. Some of the most popular AI platforms powering modern retail are: –
- Seventh Sense: – It is a prominent AI platform that can help boost the efficiency of email marketing campaigns. Additionally, this platform can also help with boosting eCommerce store engagement. Seventh Sense uses the latest AI technology to optimize marketing campaigns. It also helps break through the clutter of inboxes to offer in-depth analytics driven by data. This platform also supports leading solutions like Marketo and HubSpot.
- Granify: – Granify is widely used for its speedy and effective revenue optimization functionality powered by ML. eCommerce stores can easily integrate Granify into their operations. It records 500 distinct data points for every second that the customers interact with the store. This data is then used for comparison with billions of unique consumer behaviour patterns to determine the probability of transforming leads into customers. With its predictive analysis, Granify helps eCommerce stores deliver products and services that customers desire.
- NeoWize: – It is a popular AI retail platform that is known for its active data-driven approach. Through this methodology, NeoWize continuously develops advanced algorithms to take ML processes to the next level. This platform has emerged as a market leader in the eCommerce sector based on its technological capabilities like neural networks, ML, and adaptive inputs to make the most out of the data available to the business. This platform also offers useful insights, business intelligence, and analytics.
- Liveperson: – It is a potent AI-powered retail tool that helps bridge the conversational gaps existing between the company and prospective customers. Liveperson is regarded as a unique initiative that helps improve brand-to-customer conversations. This target is achieved through conversational cloud technology powered by AI. Liveperson not only helps with ushering in improvements in conversations but also enables the customers to make purchases through any of their preferred messaging platforms.
Brands Using AI-Powered Retail Solutions
Here are some useful insights related to brands using AI-powered retail solutions in their operations: –
- Amazon: – Amazon has introduced Amazon Go and Just Walk Out shopping technology for the retail sector. These platforms provide a response every time any customer picks up a product placed on specific shelves across retail stores.
- Kroger: – Kroger has been able to reduce its costs by up to 50% through the introduction of smart shelf tags to replace paper price tags. This Enhanced Display for Grocery Environment technology is powered by Microsoft Azure.
- H&M: – H&M uses its chatbot messenger Kik to enhance the customer’s shopping experience. The brand offers recommendations, style preferences, and customized filters to establish its position as the market leader.
AI-powered retail solutions have taken the retail industry by storm. With several start-ups and established companies foraying into the market, it will be interesting to see how the future shapes up for this industry.