ai in retail

How can AI Vision for Retail affect in 2022?

A lot of retailers are facing the toughest challenges of our time such as the competition, profit margins and establishing the proper business culture. Many of the most innovative retailers are relying on AI or machine learning to increase their revenue. Contrary to this, other retailers may prefer capturing data, creating trust with their customers or automating their tasks to allow their employees to accomplish more complex tasks.

There are huge possibilities in the use of AI for the retail sector whether AI is used to forecast pricing, making decisions about pricing or even determining the best place for the products are. Let’s take a review of how retailers can make use of machines and AI to enhance customer service and increase sales.


What is Artificial Intelligence (AI)?

AI is a term used to describe “artificial intelligence.” AI is a vast area of computer science designed to train computers to think just like humans. The purpose for AI is to help computers to replicate human intelligence and AI is being evaluated and applied to every business field around the world.

Artificial Intelligence (AI) is changing the retail industry. From the use of computer vision in order to personalize promotions in real-time, and applying machine learning to the management of inventory, retailers are able to utilize AI to communicate with their customers and run more efficiently. Intel(r) technologies drive AI in retail in every step of the process, from the brick-and-mortar point to the cloud.

To stay competitive retailers need to be able to engage with their customers in ways that have never been done before, and also eliminate the inefficiencies and waste from their business operations. Data is the way to go however understanding the volume of data requires a lot of intelligence.


AI Vision For Retail

Retail’s digital transformation goes beyond just connecting things. It’s about translating data into information, which can help to determine the best actions for greater business results. AI in retail–including machine-learning and deep learning — are essential to the generation of these insights. For retailers, this leads to amazing customer experiences, the potential to increase revenue, rapid innovations, and efficient operations — all of which can help you differentiate yourself from your competition.

Many retailers are employing AI in a portion of their business. You could make use of AI within CRM applications to automate marketing processes as well as predictive analytics to figure out those customers most likely to buy particular products. Cloud computing allows AI tasks that require large amounts of data from a variety of sources to be processed and stored. A few examples of cloud-based retail applications are demand forecasting machine learning as well as online product suggestions.

However, running AI within the store itself can provide advantages. Edge computing can act as a catalyst for insights, by aggregating and changing huge quantities of data into useful and actionable intelligence. Think of inventory robotics that can automatically replenish shelves, digital signage that can adapt to the user’s preferences and sensors that monitor the patterns of customer traffic to help determine the possibility of cross-selling and upselling.

A specific kind of AI deep learning used in retail, referred to as computer vision is making waves in brick and mortar. Computer vision “sees” and interprets visual data, allowing you to see wherever you need to see them. This is opening the door to new retail applications that include customer experience as well as the forecasting of demand, management of inventory and many more.

What is the Meaning of Machine Vision?

Machine vision is the term used to describe the fact that computers are able to “recognize” objects thanks to AI technology. Machine vision allows customers to easily shop on their own however, it is also able to track data on in-store buying patterns.

Machine vision lets computers detect faces and objects which is extremely valuable in the retail industry.

How Can Retailers Use AI?

A lot of retailers have already embraced AI to discover ways to forecast demand, control inventory, and help with check-out self-service. AI will help optimize your supply chain, increase the customer experience, and increase the way in which demand forecasts are made.

Machine Vision has many use situations that can benefit the retail industry. For instance video cameras could make use of machine vision technology to detect employees when items are not properly placed. A robot can also employ machine vision to identify what products require to be kept in stock.

What are the five methods Vision AI will shape the future of retail?

The capability to engage with an item prior to purchasing. Consider looking at the freshness of fruits and vegetables, trying personal items like clothing and cosmetics, and looking at the quality of a costly piece of furniture prior to buying (IKEA! ).

  • Customer support and direct questions to sales assistants.
  • Reduced shipping time and the associated costs, while eliminating the hassle of returning unwelcome items.
  • Window shopping as a form of retail therapy, the pleasure of spending time with your loved ones “grabbing a coffee then going shopping”.

In essence you can say that there’s one thing that physical stores can offer that online shopping doesn’t interact with people. How can retail stores survive in the digital age?

This is done by providing a unique shopping experience as well as providing top customer service.

Vision Artificial Intelligence technology to retail

Businesses can improve their customer experience using vision AI. While it’s still in its early days, smart retailers are beginning to explore the possibilities of this technology which will enable them to adapt in line with the evolving shopping habits of consumers.

Simply put vision AI operates by taking an image then processing the image and then classifying or understanding it in order to create an artificial database system. Artificial Intelligence (AI) is able to decide to take actions that are based on the knowledge of the data.

In the retail sector Computer vision technology is applied to the following areas:

1. Cashierless

Who doesn’t know about Amazon Go? This innovative technology allows automated payment in its stores that are grab and go. It is not necessary to stop at POS or scanning devices. Customers simply pick their desired items and then leave the shop.

Amazon Go uses a mix of technology, including cameras to monitor customer movements, detect when a particular product is purchased and then charge the customer’s account at the time they leave the shop.

“The majority of sensing is from above. Cameras figure out which interactions you have with the shelves. Computer vision figures out which items are taken. Machine-learning algorithms also determine which item it is,” states Dilip Kumar, vice-president of technology at Amazon Go.

2. Customer data for business intelligence

All businesses collect data from customers which is the base of business decisions. Computer vision makes collecting data easier. By using computer vision, facial recognition can recognize different demographics of customers and create a persona for them based on their purchasing patterns and their in-store activities.

Like analysing the performance of websites, computer vision also lets retailers create heat-maps for their stores, identifying which display designs draw attention and which do not. This lets retailers position their merchandise in the most effective method.

3. Advertisements in stores

In the same way, for businesses which use digital signage to show advertisements using facial recognition, this technology is a game changer. The content now can be targeted according to who is watching it. Vision Analytics face recognition lets retailers recognize the faces of their customers and then assign them to a specific kind of demographic.

Based on these knowledge points Store planners and marketers can plan their content so that they get the best return on investment.

4. Prevention of theft and compliance

Shoplifting and theft by employees have cost retailers close to $100 billion across the globe. Security cameras that are traditional have blind areas. When a shop is busy, security personnel are stretched which leaves room for human error.Computer vision facilitates this process by instructing systems to watch and recognize suspicious activities. Utilizing video footage from previous crimes or other suspicious actions cameras can be trained to spot suspicious movements and instantly notify employees. The same process can be replicated in order to spot violations – thus cutting down on the time businesses spend to make sure their stores are compliant with the safety and merchandising requirements.

5. An additional layer of protection hygiene

Not only does vision AI track human activity It can also keep an eye on hand-to-surface interactions.

Surfaces in public areas are frequently occupied by people. The powerful vision AI cameras observe these interactions and present this data as heatmaps. If a threshold for hand-to-surface interactions has been attained, a cleaning team is notified to carry out the cleaning and disinfection process.

The difficulty is applying the computer’s vision technology to the real world

The installation of a computer vision system inside a retail shop isn’t an easy task. Retailers will need to install cameras at the correct locations within the store. The computer vision algorithm that powers the cameras will need to be taught what to recognize and the next steps to be executed.


How can we assist you?

We’ll assist you in moving your business to the cloud while providing a great digitised experience.With the digital revolution, our committed staff will assist you in optimising your processes.

If you’d like to learn more about us and how we can help you improve your digital customer experience, please click on this link.



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