The role of AI or Artificial Intelligence in the retail industry is finally coming to the surface. As per studies, presently, the spending of the retail industry is around $49 million. After the inclusion of AI, it is expected to rise to $12 billion by 2023. The AI in the retail industry is estimated to increase more than 200% in terms of spending within 2023. The statistics clearly indicate the prevalence of this technology in the market.
With AI, retailers can gain more information on consumers. It will inevitably change the entire makeup of the retail sector. However, to stay ahead in the game, retailers need to understand, learn and adopt AI into their business. It is vital to understand the impact of AI in retail before using it.
Advantages of AI in the retail industry
There are numerous benefits that retailers can gain from the adoption of AI into their business. Take a look at some of the advantages of having more knowledge.
Better customer experience
With the use of AI, retailers can now offer a smooth and rich shopping experience to their customers. The AI-integrated mobile phones can aid in the sale of products, thereby leading to an increase in conversion rates. Moreover, a more customized approach can sway consumers to shop with you even more.
Optimization of tasks
It is without a doubt that with the integration of AI, routine tasks get instant automation. Moreover, this technology can also assist in highly demanding work. For instance, AI can aid in the scheduling of labor, planning of routes for timely deliveries, tracking of the delivery, and much more.
Leveraging AI to promote and market products or services can eventually aid in the increase of sales. For instance, voice and speech, facial recognition, Chatbots, virtual assistants, and more can assist in marketing. Did you know that the adoption of AI into all customer-related things can lead to the reduction of consumer complaints by almost 15%?
Avoidance of long queues
Equipped with powerful AI, retailers are quickly integrating camera, audio, and Wi-Fi into the shopping experience. It would ultimately lead to the “Connected Shopping” phase where customers don’t have to wait in queues to try products or check out services. This seamless shopping experience reduces the waiting duration drastically.
Accurate machine learning-based forecasting can lead to a massive amount of revenues for retailers. This way, the retailers can gain more margins in terms of profit and meet the consumer demands without any hassle. As per a report, this forecasting backed by ML is estimated to attain revenues of about $3 billion by 2023.
Extraction of valuable data
While collecting data has never been an issue with the retail industry, transcripting data that is valuable was. With machine learning and AI, retailers can now extract customer data and use it to build proper marketing strategies. Most e-commerce giants such as Walmart adopt ML to predict the likeliness of the shoppers in the purchase of a particular product.
The wide range of advantages that AI brings into the fold matters a great deal. From optimization of daily tasks to enhanced promotion, businesses will prosper. However, one needs to understand which aspect of AI aligns the best with the retail business. For that, consultation with the best company that provides Artificial Intelligence solutions is the best idea. Consult GoodWorkLabs for all your AI needs and watch your business grow! Contact the team here.