The use of artificial intelligence enhances the business and increases market competition in every industry. This blog will elaborate on the use cases of AI in the retail industry. The use cases are clustered into the following categories, being, sales & CRM, store management, and logistics.[gdlr_core_space height=”30px”]
The biggest advancement ever made on the use of AI in the retail industry is Amazon Go. Amazon Go is a revolutionary concept in retail, consisting of stores without cashier. The customer simply walks into a store, takes the item they need and walk away, through the integration of sensors and cameras. The system tracks the items claimed by the customer and charges the Amazon account. Macy’s chatbot in the “On-Call app” is customized for each store and answers any questions a customer asks, e.g. if a specific item is in stock in that store, directions to that item. Furthermore, Starbucks has recently started to deploy an app called My Starbucks Barista where the customers can order through voice or text so that the customer doesn’t have to wait in the line. Lowes’ LoweBot helps customers find what they’re looking for, by asking the customer what they want and provides directions to the items, checks the inventory and informs whether if that item exists, and gives special information on these items. The app is also used by store management for further replenishment. Another unique use of AI is the Walgreens keeping track of the flu prescriptions and informing customers on a possible flu outbreak, giving information region by region.
IBM Watson provides e-Commerce retail companies better order management and CRM capabilities through AI, a use case includes tailoring of a custom gift for a customer when he/she provides information about the recipient. Another use case of IBM’s Watson is the North Face recommending jackets to the customers depending on the date and location it is about to be worn, through conversational AI. Moreover, Sephora’s Color IQ and Lip IQ application finds the perfect lipstick and foundation shade and thus giving personal recommendations by image recognition.
[gdlr_core_space height=”40px”] [gdlr_core_space height=”40px”]
West Elm’s “The Pinterest Style Finder” scans the customer’s Pinterest boards to comprehend their personal styles and makes recommendations based on the match.
Delivery drones are no longer a futuristic concept. Amazon announced drone delivery in 2016. The system can deliver packages up to 5-pound, under half an hour. A similar application is used by Domino’s; the company claims that its prototype of the robotic delivery system can keep the food and drinks warm and minimizes the time spent on the road. Robots also provide customers with stock and size information. Pal Robotics’ StockBot navigates through the departments and informs customers about stocks through RFID and cameras.[gdlr_core_space height=”40px”]
The robot also provides data-driven analysis and improves restocks based on the demand forecasts. Moreover, Zara has recently adopted a system that enables customers to order items online, gives them a code, and the robots pick the item up when the customer arrives. Another clothing giant H&M uses AI to analyze the trending items, makes demand forecasts and orders restock for every single store. Designer Rebecca Minkoff has built smart stores that have touchscreen smart mirrors, enabling the customers to browse through the items in interactive fitting cabins and integrates the mirrors with the RFID to inform the customer about the available sizes.[gdlr_core_space height=”40px”]