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How Artificial Intelligence will transform retail industry
How Artificial Intelligence will transform the retail industry this decade
Artificial Intelligence will transform the entire life cycle of a product right from the shop floor to the doorstep of the end customer. Every aspect associated with the retail business will be stirred by artificial intelligence for the better. Based on a new study by Juniper Research the global spending on artificial intelligence in retail is expected to touch $12 Billion by 2023, this whopping surge of 230% reflects the acceptance and importance within retailers to adopt AI in the day-to-day working of the retail business.
Artificial Intelligence will reconstruct the working of the following parts of the retail machinery :
AI will make the shopping experience a whole lot more personal for the customer, AI-assisted software shopping bots will be a significant part of our shopping experience. The prime goal of these software bots will be to improve sales by identifying and conversing potential internet leads. The data-driven software will have a beforehand understanding of the customer and his/her preferences while talking to them, this will help the retailers in offering a more engaging and personal shopping experience for the customer.
Understanding and suggesting what the customer wants is the best thing a retailer can do to convert a sales opportunity into actual sales. An AI-backed e-commerce platform will help a customer understand what he wants based on user inputs. For example, a customer who wants to buy hiking accessories and apparel for a particular hike, AI will present recommendations based on the data such as the hiking conditions, weather, etc. To be able to meet a customer's expectations in helping them figure out what they want or what they should buy develops a sense of trust in them and along with a potential sale it also increases the possibility of customer retention.
Artificial Intelligence can help retailers in creating an efficient supply chain that can integrate data from all the different parties involved right from the manufacturer, shipping, inventory, order, billing, etc. A perfect supply chain needs real-time moderations and actions which are near-impossible to achieve with human involvement. AI improves the critical aspect of supply chain networks such as routing, analyzing the demand, data optimization which otherwise remains unattended or never attended proactively. AI ensures the speed and stability a customer expects in his order processing and delivery of the product.
Artificial Intelligence improves payment handling based on deep analysis of payment trends and historical data. It reduces manual intervention and makes the whole process more secure. AI combined with Robotic Process Automation (RPA) helps the retailers to manage their routine activities more efficiently and accurately.
AI systems offer better monitoring prowess on payment transactions from the point payment is initiated and successfully enters the bank via the payment gateway, by handling hundreds and thousands of such transactions a huge chunk of data is generated as a by-product which will help in making the process more efficient. AI systems can suggest suitable payment products for the customer in terms of processing time, payment charges, and payment usage customized to the customer's activity patterns.
The big players in the market are already deep into Artificial Intelligence as a means of doing their business, and for the Small and Medium-sized (SMEs) enterprises, this would be the best time to invest in Artificial Intelligence to take their retail business to the next level. Artificial Intelligence as a technology is here to stay and it has just begun transforming businesses and retailers to make the influx of AI into their business and take advantage of what AI has to offer and flourish their retail business this decade.