Digital adoption in AI is a fast-growing use case where the retail industry leverages AI and ML tools to manage stores, generate revenue, and forecast purchasing accuracy.
FREMONT, CA: The retail industry employs artificial intelligence (AI) to improve operational capacities and customer engagement. Studies show that by 2030, more than 300 000 retailers will incorporate AI in business. The industry will receive more investments, enabling the retail industry's market value to reach USD 31.18 by 2028.
The retail industry will expand its digital adoption to leverage AI applications in the following areas.
Store management: AI tools provide planners with an effective solution to create the optimal floor plan. Retailers can Strategize a store's layout to suit the type of business, granting retailers a better chance to maximize sales and customer engagement.
Product recommendation: Machine learning tools learn consumer behavior and can make personalized suggestions that account for customer needs and preferences. Retailers use ML tools to gather information to support marketing efforts to predict future buying behavior. AI helps manage and update customer databases.
Scheduling: AI technology helps in planning workforce composition. Retails often overhire to get more work done. While over-hiring, retail units lose out on profits as a smaller workforce may be enough to manage units effectively. AI tools present comprehensive data that guide managers in streamlining their hiring process. Predictive analytics-backed AI solutions automate employee scheduling to allocate tasks across tasks meaningfully.
Inventory management: AI is an effective tool for managing inventory. It enables retailers to stay ahead of demand by tracking stock availability. AI tools collaborate with other digital infrastructures to consolidate data that will inform managers of new products for their customers.
Forecasting and purchasing: AI can help retailers improve retailers forecasting and purchasing accuracy. By 2023, spending on artificial intelligence software for demand forecasting is expected to reach USD 3 billion annually. It is easier to maintain optimal inventory levels when you have more accurate demand forecasting.
Self-checkout and loss prevention: To prevent loss and provide a better checkout experience for the customer, retailers are constantly improving their checkout experiences. Self-checkouts with artificial intelligence monitor customer activity and alert staff if theft is suspected. Research shows that smart checkout technologies will process USD 387 billion in transactions by 2025, up from only USD 2 billion in 2020.