AI in retail involves the use of automation, data, and technologies such as machine learning (ML) algorithms to deliver highly personalized shopping experiences to consumers. AI can be applied to consumer experiences in both physical and digital stores.
Artificial intelligence (AI) is reinventing the retail landscape. From using computer vision to customize promotions in real time to applying machine learning for inventory management, retailers can harness AI to connect with their customers and operate more efficiently. Intel® technologies power AI in retail at every step of the way, from the brick-and-mortar edge to the cloud.
For decades, traditional analytics have worked perfectly fine for the data-driven retail industry. However, Artificial Intelligence (AI) and Machine Learning (ML) have introduced an entirely new level of data processing which leads to deeper business insights. Data scientists could open a new world of possibilities to business owners extracting anomalies and correlations from hundreds of Artificial Intelligence/Machine Learning models.
Between 2013 and 2018, Artificial Intelligence startups raised $1.8 billion in 374 deals, according to CB Insights. Amazon can take credit for these impressive numbers, because they made business leaders change their minds about Artificial Intelligence in the retail market – both physical stores and e-commerce strategies to stay ahead of the competition. At the moment over 28% of retailers are already deploying Artificial Intelligence/Machine Learning solutions, which is a sevenfold increase from 2016 when the number was only 4%. Take a look at the popularity of “AI in Retail” in Google Trends:
As online shopping replaces more and more brick-and-mortar retail stores, AI in retail is taking center stage for enterprises. In a digital era where consumers are constantly seeking personalized products and services, artificial intelligence solutions in retail are helping retailers align their offerings with the expectations of their customers. The disruptive impact of artificial intelligence in retail is seen across the value chain and is emerging as a powerful tool for retail brands to gain a strategic advantage over their competition. Marketing research firm Tractica has predicted that global AI revenues will grow from $643.7 million in 2016 to an excess of $36.8 billion in 2025.