AI is Fundamentally Changing Retail

AI is Fundamentally Changing Retail

As AI-powered technology continues to evolve, we can expect to see even more innovation in the retail space in the years to come. Here are a few examples of what AI is doing for retailers and customers:

Personalisation

AI algorithms can analyse large amounts of data about customers' behaviour, preferences, and purchase history.

Meaning personalisation can be taken to new heights. With 80% of customers choosing brands that give them a personalised experience, this is one of the biggest reasons to adapt to AI tech.

Inventory management

AI helps retailers optimise their inventory levels and avoid stockouts by using machine learning algorithms to forecast demand and adjust inventory levels accordingly. Helping retailers reduce waste, improve efficiency, and ensure that popular products are always in stock.

Returns

Like many fashion retailers ASOS reported in their annual report that returns are a big issue. AI goes a long way to help, through better accuracy of?product

recommendations, the utilisation of pop-ups and experiences that will better ‘describe’ what the customer is about to buy amongst just a few.

Customer service

AI-powered chatbots and virtual assistants can help retailers provide 24/7 customer service and support, handling routine inquiries. According to Salesforce in January 2023, 23% of businesses are using AI chatbots. The report also found that a further?31%?are planning to use them within the next 18 months

68% of consumers like chatbots because they provide quick answers

And...90% of chatbot users' experiences are positive or neutral?

Pricing

AI algorithms can analyse pricing data from competitors and adjust prices in real-time to remain competitive. 53% of fashion shoppers have said they’ve walked out of stores because prices didn’t match those online.

Fraud detection

AI is helping retailers detect and prevent fraud by analysing patterns in transaction data. In fact, $20bn was lost by e-commerce retailers in 2021 due to fraud attacks.

AI technology accelerates the detection of cyber threats by 73%.

AI detects fraud with next-gen machine learning software or deep learning algorithms increasing the precision of results for each transaction. So it's only getting better and better.

Conclusion

Overall, AI is helping retailers to better understand their customers, optimise their operations, and provide more personalised and efficient shopping experiences.?

We are stepping in with many high-street brands to ensure their AI technology is delivering and watching the changes it brings to their growth is very rewarding.?We look forward to a future of AI-powered efficiency.

About the Author

Darryl is an automated testing specialist, coach and trainer.

Darryl provides hands-on consultancy to key clients, advises and mentors our consultants and drives recruitment and people development.

An expert at building large delivery teams onsite or remotely and driving innovation into Spike’s client solutions. Passionate about understanding B2C retail customers and how technology can cut through.

About Spike

Spike ?are retail technology experts delivering end-to-end, go-live confidence. We enable global retail brands to enjoy painless digital transformations.

We ensure confidence in retail site performances for the best commercial outcomes.

Perfecting the complex technical landscape that brings true retail business transformation.

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