In truth, no industry is being overlooked by this fast-paced change. Many businesses have begun to see the potential of AI, and about 63% of organisations are looking to adopt AI in one form or another in their business processes. The retail sector is not left out of this changing tide.
Many companies in the retail industry are beginning to look ahead and apply generative AI, machine learning, and automation to improve workflow, both in major corporate decisions and daily business tasks. AI has become a relevant tool in the business world, and we have seen an uptick in its global market size. However, there is still much room for growth.
The term “generative AI” describes artificial intelligence’s capacity to produce a wide range of content kinds, such as texts, images, audio, videos, and more rapidly. It is not an entirely new area of technological advancement, but its abilities in recent years have improved dramatically. To better understand artificial intelligence, the terms machine learning and automation have to be briefly explored.
First, machine learning is the ability of an AI model to learn and improve its abilities based on the information it has access to. Automation, on the other hand, refers to the abilities of machines, robots, or systems to carry out tasks after they have been fed with the necessary information without needing any more information on that task.
The UK’s retail sector is steadily experiencing significant changes, and we’ll examine how generative AI is a major driver of these changes.
Generative AI is currently playing key roles in various areas of the retail industry. Here are some examples:
AI’s vast repository of information and its machine-learning capabilities make it an accurate predictive tool. Retail companies are beginning to maximise AI’s ability to crunch available information to determine potential order volume and produce the needed amount of products with a slight probability window. This essentially helps retailers better manage their inventory and facilitate quick payment through options like retail EPOS.
The search function is vital for a great customer experience, and AI has started improving the search process for many retail businesses, including providing visual search options for customers. Customers can now take pictures of the product they are looking for and get accurate responses. Some companies have further encouraged augmented reality and more realistic presentation modes using AI to get the best results for their customers. Zalando is one of these companies which has integrated a virtual fitting room for its customers.
Here, we see that AI’s ability to crunch a lot of data quickly improves customer experience. Retail businesses are beginning to use generative AI to create tailored content for their customers and potential customers. Companies now also use Generative AI to recommend products for customers based on their behaviours/preferences.
Perhaps one of the most obvious ways we have seen generative AI affect the retail industry is by improving chatbots and general online shop assistance. Chatbots are better equipped to reply contextually, make reliable recommendations, and improve the shopping experience for customers. This significantly contributes to the buyer journey and improves client retention and happiness.
Generative AI has helped many retail businesses improve their product design and packaging. With generative AI, you can run various simulations on product design and their pros and cons. This greatly improves the product quality while reducing the risk of error, material waste, and the amount of time spent on the project.
AI is here to stay, and while some companies might be sceptical about the early adoption of such technology, it is only a matter of time before such a change becomes the norm. Retailers will gradually enjoy the benefits of using generative AI in the immediate and far future.
Although the prospects are encouraging, the lasting effects of AI on the labour market have yet to be seen, and it is logical that everyone can only be reasonably cautious about what the future holds.
