Artificial Intelligence in the Retail Industry: Improving Shopping Experience

Retail has relied on traditional methods for customer and analytics for a long time. However, it’s not going to last forever.

Retailers (including your company) are in need of right today is an understanding of their customers which will enable them to stay competitive and expand their customer base. The best method to achieve it is to use cutting-edge technologies, like artificial intelligence (AI) and machine learning (ML). It’s not just an opinion.

At 35% CAGR, this is the way that the market for AI in retail is expected to grow up until 2027 (according to research). Estimated as 1.80 billion dollars in the year 2020 and expected to grow to 14.71 billion dollars by 2027. This is a major breakthrough, don’t you think? There must be some reason behind this.

In the moment, we’re trying to shed more light on this problem. What AI techniques are retailers currently using? What benefits do they get? We’ll answer these questions, as well as discuss market trends as well as effective usage cases.


AI and Retail: How Artificial Intelligence Impacts the Retail Industry

What are we aware of about the specific niche? Let’s take a closer look into this AI marketplace for retail, its potential, and its unique features.

It’s no secret that it was a year of uncertainty. was a difficult and disastrous year in many sectors, including retail. In this area AI, the AI segment fell by 30% when compared with the year 2019.

Why Does Your Retail Business Need AI Optimization?

The numbers are amazing, but what about the information on the actual positive business effects from artificial intelligence for retail? We’re not going to convince you to believe in miracles, but only with the power of AI algorithms.

Let’s first examine how retailers use AI across the globe:

let’s go into detail now.

1. The routine operations are more efficient

The routine tasks are the first priority because every retailer is faced with these challenges every day:

  • The supply chain is something that many retailers have attempted to optimize in search of the most efficient routes. AI algorithms provide suggestions for the most efficient route to follow, and eliminate the human element.
  • Packing and picking are now provided by robots. In addition, robots can work together and even pack larger orders.
  • The number of returns can be cut down by prior analysis of potential purchasing patterns. Algorithms look at prior transactions, searches and even weather conditions.

2. The audience of the faithful is growing

Today, AI can help retail offer smooth customer service in a variety of scenarios, ranging from automated checkouts all the way up to tracking customer mood. With these technologies, you’ll be certain that every customer gets the right care and guidance to take the ultimate decision. This will ultimately increase the satisfaction of customers.

3. A customized approach takes you to the next stage

Artificial intelligence allows the transmission of online purchases to offline world. If a retailer is operating an online store (which is most commonly used today), AI algorithms will collect important information about customers by using email marketing as well as personal accounts. The data can then be used to determine customer behavior and tailor deals to the customers who have loyalty cards.

4. The store space is used optimally

Optimizing inventory and space is a simple task for retailers that use AI. The algorithms take into account the preferences of consumers and preferences, the location of products, seasonal and climate conditions expiration dates and more. to put shelves and other items in areas where customers will be able to locate them quickly. In the end, each corner of the store is thoughtfully designed and sales are growing.

5. Security measures for data become more precise

AI technology is the first to recognize unusual data movement within the system, and no human administrator could accomplish this quicker. This is why a lot of retailers utilize AI to ensure security of their data. This is essential because companies keep a great deal of data about their customers and their buying habits.

Technologies Used for AI in the Retail Industry

By 2021 AI in retail will have many applications. Below, we provide an overview of some of the techniques used by both retail stores both online and offline.

1. Automated checkouts

The devices were designed to improve the experience of customers by eliminating the limitations that are typical of typical checkout methods.

The main ingredient of this technology is computer vision , which is built into the cameras in the store, and placed in various locations around the store. The system recognizes products picked by the customer since it’s connected to the database of stock items. As soon as the store is closed customers can make use of the app’s account, or a card for payment to purchase the groceries they want to purchase using an iPhone.

2. Robotics

Robots are an extremely popular form to use artificial intelligence in the retail sector. The most intriguing use for them is in the role of shop assistants.

Similar to virtual assistants in your home or on your phone, store robots make use of an ASR (Automatic Speech Recognition) technology that aids in recognizing human speech and transforming into text. Robots will respond to the customer’s query with predefined algorithms.

3. Personalized online recommendations

Artificial Intelligence in retail is more widespread that ever. Have you ever considered the potential of YouTube or Netflix recommendations? These platforms have grown and maintained their popularity mainly due to artificial intelligence.

It’s basically the same with retail. This is how it might appear like:

  • Recommending items that are related to the ones that was reviewed by the user
  • The website provides hints as to the other items that shoppers with similar preferences purchased on the site;
  • Offers products based on customer’s previous purchases
  • We recommend the most current version of the item that you are viewing.

Before you implement similar content on your site It is important to check all the collected details. The catalog of products should be up-to-date, and every listing should have a quality description.

4. Virtual dressing rooms

The long line of people waiting to go to a dressing area, and then trying each piece of clothing on – not everyone enjoys this aspect of shopping. In the current pandemic, this issue has to be pointed out more clearly.

Through virtual fitting rooms customers do not have to go out of their homes to search for an ideal item or dress. The AI technology overlays the item onto the user’s photo to give a clearer perception of the dimensions of the item, its style, and the color.

5. Tracking mood

Cameras scattered throughout your store could be aided by another crucial feature that is mood monitoring. Store employees cannot keep an eye on each customer however AI algorithms are able to. Employees receive an alert of a dissatisfied customer and are able to contact them right away. This technology improves customer satisfaction and helps you build your fan base quicker than traditional methods.

Visual search lets people upload pictures of the product they’re looking for and then find similar products in similar shapes and colors. This is a fantastic feature for large retailers who have many items available. It allows you to will meet the requirements of buyers who know precisely what they want. Searching visually is by far the most efficient method to go from a request to a finalized deal.

These are just some of the examples of current AI options for retail. The market is constantly changing, adapting to new trends in the world and consumer demands.


What Is the BriskLogic on the Role of AI in the Retail Industry?

Artificial intelligence is able to help retailers in a variety of ways, but which is right for you? Before you take any action we suggest you think about a few aspects based on our own research and development experience.

What are the things you should think about prior to launching AI deployment?

There aren’t two retailers that are identical on the market, and therefore, any decision regarding modifications and new products must be carefully weighed. Keep an eye on your competition however, always keep your company and its particulars first.

Find out the reason you’re using it. First, you should determine which area of your business needs AI innovation. Explain it to the vendor at the start of the conversation. Make sure to give a complete picture. This will enable the tech team to offer you the most effective solution.

Take into consideration the possibility of IT infrastructure upgrades. Forget about traditional software when you are planning an AI implementation. Based on your objectives you’ll have to make sure you invest in the right elements of the IT system that are suitable to AI methods. If you already use enterprise applications and are familiar with cloud computing and big data solutions and cloud solutions, your AI adaption will go easily.

What are the questions you should be asking an AI seller?

Selecting the right AI Development center is not something you do every day. What can you do to be sure that you’ve made the right choice?


In terms of artificial intelligence, retail is among the sectors that get the most use of this kind of technology. This is what you know to be certain:

  • In 2021 in 2021, the AI retail market is expected to exceed and surpass the volume it had prior to the crisis by nearly 300 million USD.
  • The top three global AI applications for retail are customer service, quality control and inventory management.
  • AI-powered solutions are now able to cope with customer care routines and store staff are able to focus on more complex tasks. This is a great way to increase the number of loyal customers;
  • The world’s most renowned retailers such as eBay, Sephora, Macy’s, Amazon, and others have benefited from AI developments;
  • Artificial Intelligence and retailing could drastically alter the traditional shopping experiences that have existed for decades.
  • Whatever others may suggest, it is important to keep your business’s reality in your mind and apply AI algorithms that meet your current requirements and strategies.



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