Impact of AI in retail

Artificial intelligence (AI) and machine learning are impacting the retail industry in several ways. One way is by providing better customer insights through the analysis of large sets of data, also known as big data. AI can also improve customer service through the use of chatbots to handle routine inquiries and screen potential employees through the analysis of their profiles and data. AI can also facilitate talent recruitment by predicting outcomes and analyzing trends. These changes can improve businesses' efficiency and productivity in the retail industry.

Machine learning and Artificial Intelligence has been a controversial subject for companies. For some time now there has been a debate on how it influences and changes different industries. But what we do know, is that it does. For businesses in retail, it’s necessary to be able to understand and predict the changes coming in the future. That way, companies in this field can anticipate and prepare their technology for the future. Currently, it doesn’t matter if you’re a small or large business. AI will drastically change the way retailers operate and their infrastructure, regardless of their size. By understanding the impact of AI on businesses, companies will be able to reach their goals more efficiently and increase their productivity. In this article, we’ll zoom in on the ways that AI can impact businesses specialized in retail.

Better customer insights

When companies are dealing with customers, whether its business to business or business to consumer, they are dealing with large and unstructured sets of data. These sets of data are called big data. One of the abilities of AI is that this can be of use to structure and process this. Ai and machine learning can apply statistics, notice trends and analyze all of this, while if done by humans this could take weeks. By doing so, these companies will benefit from more organized data and be able to see and predict customer behavior that are trends, as well as find correlation between different consumer traits, making it easier to personalize their service and predict what customers will want.

Customer service

The influence of AI on customer service is already starting to show results, as more and more companies adopt this technology. A great example of how this translates to reality is the so called chatbot. It’s a technology that asks consumers different standard questions and can also answer them, such as the consumer’s personal information such as delivery address and payment method. Instead of calling or emailing a real person from the customer service, consumers can now chat with this chatbot. On top of this the chatbot will also give the consumer answers, for example what the estimated delivery time is. This implementation of AI and machine learning is one of the most common uses of AI. In customer service, a lot of businesses already use chatbots to do most of the correspondence with customers. Chatbots are able to ask and answer almost every question possible that can be seen as a routine inquiry.

Better talent recruitment

We just elaborated on Ai being able to handle routine questions in customer service. But apart from being to handle simple repetitive questions, AI technology can also screen potential employees’ profiles. It can be used to search for a specific type of personal quality, but also to predict outcomes and analyze trends. This way, recruitment can be done much faster and easier. For example, Ai can structure all the different applicants’ profiles and date and calculate the best match for the company, depending on what specific applicant profile they’re looking to hire.

The impact of AI and machine learning in the retail industry field are obvious. It contributes to a better consumer insight, customer service and on top of that it facilitates talent recruitment. That being the consequence, the impact on this industry can be described as beneficial. Curious to learn more about the benefits that AI can bring to your business? Take a look at our website and contact us- at Baise we offer our personal advice and expertise on AI for your company. Our aim is to connect brains with business by providing you with talented and ambitious students looking to gain real experience in the field.

All images created by DALL-E


Published on
January 10, 2023
Author
Philip Gast

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