As the use of AI enabled platforms continue to grow within all industries and markets, we will also see a greater level of AI platforms being adopted by retail companies. There are four factors that will influence the adoption of AI in Retail:
Think Big, Start Small
Retailers who adopted AI early are already benefitting from this innovation. Retailers that are new to using AI in their day-to-day operations will benefit from starting with the “basics.” It is important for retailers to remember it is not about solving all their problems at once, but to focus on fixing one problem at a time. People often get caught up in the task at hand or distracted with too many problems. It is very important to remember the strategy of “test and learn.” Make one adjustment towards personalization for the consumer and test it before you move on to the next.
AI Boosts Conversions, Revenue, and Customer Satisfaction
IDC Retail insights predicts by 2019 40% of retailers will have developed a CX architecture supported by AI. IDC forecasts customer satisfaction scores to rise by 20%, employee productivity to rise by 15%, and inventory turnover to rise by 25%. This is all going to be possible due to AI paired with AR and IoT data which will give retail companies the ability to hyper-personalize each customer’s experience.
Mobile Devices Will Help AI Flourish
The vast majority of the population has access to mobile devices and conducts most their activities on these devices. This allows for a huge adoption in AI on this platform. The data collected from all these mobile devices will allow companies to improve their customer’s experience. One company that is already successfully implementing an AI platform is Starbucks. One thing their AI platform does is recommend specific orders for customers based on their prior purchase history. AI will play a big role influencing AI adoption in retail.
The Lack of Knowledge and Cultural Biases Will Hold Back the Adoption of AI
Two problems many companies face is the lack of knowledge and their cultural readiness for innovation within the company. These become a problem when people within the company are afraid to innovate new technology they don’t understand. Another hurdle retailers have to jump over is the cost of implementing an AI platform into their existing system.
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