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We can’t speculate on whether AI will revolutionize the retail industry; This is already underway. In a recent study sponsored by Nvidia, 69% of stores that used AI in 2023 said it increased their profits, and 72% said it reduced their operating costs. With those kinds of results, it’s no wonder that 81 percent of retail executives feel an urgent need to implement AI this year, according to a Google report. But while AI is already making big changes to store bottom lines, it has yet to reshape the way consumers shop. will take place this year.
For the most part, stores have implemented artificial intelligence to achieve search culmination, such as automated visitor service chatbots, personalized content for individual marketing campaigns, and advanced store and stock analytics. These first instances of use make sense because they produce quick results. But what are the most innovative stores doing with AI this year?
As the CEO of an innovation company that works with primary retail brands like Nike, Amazon, and Best Buy to design new virtual products, I’m fortunate to have a front-row seat to be informed about retailers’ “lunar” concepts for AI implementation. Retailers depend on us to generate ideas and create AI-powered products and facilities that will not only generate new profits and reduce costs, but also the absolute visitor experience. They don’t need to wait a few years; they need to implement innovative AI frameworks today.
Here are four predictions for some next-generation AI programs that stores will begin rolling out this year.
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AI agents will do your shopping for you. We first went to the mall and browsed the clothing shelves hoping to find something that would suit our length and style. We then turned to e-commerce, scouring pages and pages of articles in hopes of locating the rare gem. From now on, AI will locate and purchase parts for us. Retailers are preparing automatic grocery shopping robots that allow consumers to enter highly detailed personal tastes (styles, brands, materials, lengths, prices, etc. ) and then authorize the robot to shop for them. Consumers can approve or disapprove pre-purchases, set budgets, tell the robot to only buy certain parts at certain times or only buy parts when they’re on sale, and many other settings. There is all the generation needed to make this happen. today; it’s basically about linking AI studies with payment systems.
The AI will personalize the storefronts. We’re all used to being teased through classified ads for a pair of pants we clicked on weeks earlier and seeing personalized product recommendations on Amazon and other e-commerce sites. But we haven’t noticed one hundred percent personalized storefronts yet. AI, that’s about to change. Retailers can use machine learning models to extrapolate and infer what might be of interest to express to consumers far more accurately than existing shopper analytics platforms. This means that when a customer visits a store, it will suit their style, size, budget, and preferences. And the storefront will continue to be refined and personalized based on traffic and acquiring data, dynamically evolving in real-time.
Are you looking for the best raincoat, joint cleaner, or perfume?No matter what kind of product you’re looking for, there are likely to be thousands of visitor reviews about it, so many that they no longer make sense. Who has time to read 9,876 blackout blind reviews?Now, stores are deploying bots that analyze thousands of reviews to provide a high-level summary. Shoppers may question the effects of data they’re interested in, such as “browsing reviews about fabric quality. “” or “Do those blinds block enough to put a baby to sleep?”
AI will deliver targeted offers accurately. Consumer goods stores and brands are already adept at leveraging shopper analytics and gaining insights to provide customers with personalized deals and coupons. But AI will take this kind of personalization to 10 levels. By employing AI-generated information and artificial knowledge to create “digital twins” of visiting users, as it should be, stores will be expecting, at the SKU level, which pieces a user is most likely to buy, when, and where. By using expectant artificial knowledge, a store can simply hope that a shopper who buys Starbucks coffee at Safeway on a Tuesday will also buy Kerrygold butter at the same shopping spree and can, for example, send them a cell phone coupon while they’re in the store. Artificial knowledge is anonymized, they can do so without compromising customer privacy.
Retailers, facing fierce festivals and operating on incredibly thin margins, have been early adopters of futuristic technologies. From e-commerce and mobile grocery shopping to personalized product recommendations and BNPL, many inventions in retail have reshaped the customer experience. AI programs will de facto become your favorite retailers.
Dan Kraemer is the co-founder and co-CEO of the AI Collaborative, an innovation consulting firm that has helped many brands, including Nike, Airbnb, FedEx, Audi, and Samsung, believe in and create new products. He is also an adjunct professor at Northwestern University’s Kellogg School of Management, where he teaches innovation strategy and expansion. He is an instructional trainer at the University of Chicago Booth School of Business, educators in new innovation concepts. Kraemer is a regular speaker at events such as Shoptalk, Design Thinking. Conference, World Forum Disrupt, and IDSA International Design Conference. His artistic paintings have been identified through Fast Company Innovation By Design, SXSW Business Design, Red Dot International, and the International Design Excellence Awards. He writes for publications such as Fast Company, Crunchbase News, and American Banker. Kraemer holds a BFA from Northern Illinois University and an MBA from Northwestern University’s Kellogg School of Management.
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