The Potential Of Artificial Intelligence In The Retail Market

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With the advancement of scientific technologies, we have come across a various scientific contribution in recent times. This scientific approach has surely influenced human nature and with recent studies show that the decisions we make are influenced by the technology around us. A strong example of this is the retail industry and the latest integration of Artificial Intelligence. The impact of artificial intelligence on retail purchases can strategically be seen in various segments of the retail industry.

  • The use of artificial intelligence in retailing stores:

It is speculated by many AI specialists that there are endless opportunities; in retails, many forms of artificial intelligence are used such as Aloha POS. Tractica’s -marketing firm- worldwide revenue from AI is supposed to increase tremendously by the year 2025 from $643.7 million in 2016 to $36.8 billion. This is a massive kind of jump which is not shocking for anyone since the use of AI technology offers alternatives of job creation to multiple industries. In the same period of time, it is expected that 7% of US jobs will be soon replaced by AI and automation. It also indicates that the retailing organizations can reduce the labour costs significantly and increase efficiency. As of now how is this latest technology making an impact truly on the retailing industry? On customers, the retailing companies have massive amounts of data such as their shopping experiences. The only problem thus far is that big data collection is not easy to analyze for smaller companies which leads to large amounts of this useful data being discarded and conversion rate being only 2-3%.

On the other hand, the use of AI technology is likely to change this for many companies as the data is used for the creation of online shops which gather the data of customers and give them targeted shopping experiences; there are several online chat boxes which respond to queries and assist customers. Also, in-store intelligence is used to make a more interactive experience. The web businesses tailoring their products and marketing are based generally on the purchases customers have made in the past, online search habits, number of clicks, gender, age and some other variables using algorithms of self-learning can take the lost customer back and make their experiences more intimate and effective. As a result of this, companies make more online sales and offer more products to their online retailing stores.

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