AI Revolutionising the Retail Industry

Artificial Intelligence (AI) is one of the technologies that will greatly affect the retail industry and could help them save as much as $340 billion annually by 2022.

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Source: Emarketer

Companies in the retail industry are implementing AI technology to improve efficiency of their supply chain planning, demand forecasting, customer intelligence, marketing management, store operations and pricing and promotions.

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Source: Software Advice

Amazon has a large database that uses machine learning, leading to a more accurate predictive analysis and increased personalisation hence better serving their customers with targeted recommendations.  As such, they are able to make deliveries within 1-2 days . Being the leader of this industry, companies should keep up with Amazon’s standard and aim to have their own innovative system and technology to have a competitive advantage, unique to their own to create a differentiation.

AI  provides insights of their behaviour and trends that could aid management in making informed and accurate decisions such as dedicating their marketing and promotional efforts to serve specific customers and building a relationship with them. To be continually persuasive, constant improvements and enhancement of customer experience is also paramount to maintaining loyalty.

To prevent extinction and to remain at the head of the game, retail companies should integrate AI into their marketing strategies. By understanding its consumers, AI would have the ability to identify new revenue streams where the company could use as an opportunity to expand its market through creating new uses to its products and targeting a new segment.

However, when implementing AI, companies have to be wary of algorithmic bias, which could not only lead to inaccurate decisions and be detrimental to the company.

What other benefits do you think AI would bring in the near future? Let me know!

-E.

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11 thoughts on “AI Revolutionising the Retail Industry

  1. Such an informative read! I think AI will continue to play a huge roll in all areas of business and marketing. As it begins to get more advanced and accurate I think that flaws such as algorithmic bias will drop, but for now I guess it is important to be aware of AI’s limitations.

    Liked by 1 person

    1. Thank you for your comment! I agree! As long as a company takes necessary precautions and tact when implementing a new technology or strategy, I think its limitations could be minimised.

      Liked by 1 person

  2. I think AI’s role will definitely become increasingly important across a number of industries as it can streamline an organisation’s processes and make them work more efficiently. While the benefits AI can provide are numerous, it is not completely foolproof therefore I think that businesses should be cautious of its limitations and try to mitigate them wherever possible. A really engaging read! 🙂

    Liked by 1 person

    1. Thank you for your comment! I agree, it is important to proceed with caution when implementing new technology or strategy. I believe that cross strategies should be used to enhance its effectiveness and make up for each strategy’s limitations.

      Like

  3. I can’t wait to see the possibilities of AI in the future! It will definitely be affecting most industries and businesses as it becomes more readily available. I personally will enjoy interacting with a brand more conveniently and instantaneously. Thanks for the great read 🙂

    Liked by 1 person

    1. Thank you for your reply! I am excited for new technology as well. I enjoy the efficiency and personalisation where I could utilise my time searching through relevant products. The possibilities of AI are endless as it is expected to surpass human capabilities.

      Like

  4. Great post Elaine! AI is definitely growing in popularity and will provide so many new opportunities, not just in marketing but for the world! In regards to marketing I believe it’ll really ease the customers’ experience and convenience when shopping. I think it’ll be good for personalizing products and making it as easy as possible for the customer to make an end purchase.

    Liked by 1 person

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