AI Trends Shaping the Future of Retail
Artificial Intelligence is essentially intelligence demonstrated by machines, similar to the natural intelligence used by humans. Due to its constantly evolving nature and its ability to learn from experiences, AI is able to achieve things like independent decision making and problem-solving, and in some cases can even understand and respond to user-generated questions. Artificial Intelligence has improved tremendously over the last few years and its use in various sectors and industries is rapidly on the rise, but how exactly does it benefit the retail industry?
AI In Retail
In terms of AI Retail Services, Artificial Intelligence’s most prolific use in retail is in self-learning algorithms. These algorithms each serve their own specific purpose and continuously evolve to become more advanced as they process more data. As retailers show more interest in this revolutionary technology, a recent surge in AI retail developments has led to the emergence of two major AI trends: personalisation and prediction.
There’s no denying it – modern customers want, and even expect personalisation. For centuries, dedicated in-store sales associates have been the pinnacle of personalised shopping experiences, but the fact is that there are certain things that machines can do better and faster than their human counterparts. For example, while a sales associate might be able to recommend items based on customer information gathered there and then, there’s no way for them to take other factors like a customer’s past web or social media activity into consideration.
Advanced AI algorithms take into account information a retailer has gathered on potential customers and analyse their behaviours to determine the best course of action that will increase the likelihood of a shopper making a purchase – and it only takes them a fraction of a second to do so.
AI in retail isn’t just limited to sales, however. Popular UK-based online supermarket Ocado has been leveraging AI retail services to enhance their customers’ online shopping experience, and to categorise incoming messages from customers in order to reply to them faster and boost their overall customer experience.
As we previously mentioned, data collected by retail AI algorithms can be used to accurately predict and recommend products a customer might be interested in. Predictions powered by AI can also be used by retailers on a wider scale to help predict and forecast demand, giving them a better idea of what’s more likely to sell, and enabling them to manage their inventory more efficiently. Retail giant Amazon has been using similar AI prediction technology for years now, and has even taken it a step further by developing an AI-based system that can actually predict new and upcoming fashion trends. This is achieved by analyzing shoppers’ social media posts and other web behaviors – allowing Amazon to prioritise new and upcoming fashion on their site, as well as giving them valuable data that can be used by their own fashion brands.
AI prediction in retail is a game changer, so much so that it’s already influencing UK retail design services. When designing retail spaces for their clients, UK retail design agencies like Untitled Project can incorporate AI into their designs to help manage inventory and give retailers more insight as to how to plan their next move.
The Future of AI Retail Technology
Even though relatively new to the retail industry, Artificial Intelligence is already viewed as a futuristic way to simultaneously improve customer experiences and increase revenue. AI-driven personalisation and prediction will undoubtedly have a major influence on the future of retail, both on and offline, and practically any brand or retailer can start benefiting from this incredible technology. As a premier UK Artificial Intelligence company, Untitled Project is at the forefront of AI retail technology. Get in touch with us today to find out how combining our expert in AI retail services with our top-notch retail design services can take your brand to the next level.