How Retailers Can Level UP By Applying Artificial Intelligence

It is no doubt that Artificial Intelligence is the future of most jobs in the world. Retailers are not left out of the list, because AI is used to optimize work and improve business performance. Alla retailer desire is to make more profit and tailoring products to suit the taste of consumers. A retailer with an abundant supply chain and a large customer base will require an intuitive research development team to reduce shipping cost and enhance the supply chain by personalizing the shopping experience; this is where AI comes to action.

The advent of technology has brought a new dawn to the business sector, whereby Artificial Intelligence is shaping the future by helping retailers generate insights from their extensive customerdata.

Smart Retailers are leveraging on the computational ability of Artificial Intelligence application to gain deeper insights about their customers, which in turn improve the retailer’s empathy for their customers to enhance ethical decision-making. AI can also enhance the marketing strategy, customer relations, and operation of retailers.

Retailers that leverage on AI tends to increase efficiency and profitability. According to IBM, AI will revolutionize retail by improving to supply chain planning to 85%, demand forecasting to 85%and customer intelligence 79% in the year 2019.

How AI will help Retailers to level up

1. Customer Intelligence

With the assistance of AI, retailers can obtain better and insightful information about their customers. It is not novel that consumers expect a lot from the retailer. So, to help the retailer create a convenient and targeted experience for each consumer, retailers need data.The data are processed by Machine Learning and Artificial Intelligence to create a personalized experience for consumers both online and in-store to make them feel special.

A report shows that most of the purchases on Amazon are through the recommendation engine. This is possible by using AI to monitor consumer’s purchase pattern and generate a recommendation engine through the data. Other AI related technologies used by tech-oriented retailers to improve customer intelligence are chatbots, visual images, and curated contents. There is no doubt it is a game changer in the industry.

2. Pricing and Promotion

For a small retailer, it might be easy to come about a price strategy, but a large enterprise retailer might find it hard to come to about a price strategy. Any error in the process will bring about a loss in the side of the retailer. A retailer in this bracket can now use AI to analyze the price of each product to come out with a potential return on investment of different pricing strategies.

AI also makes it attainable to have dynamic pricing, take for example AliExpress, a retailer store uses dynamic pricing foreach member on their customer’s loyalty scheme, which presents different prices for different consumers.

3. Demand Forecasting

A retailer needs to forecast demand to avoid overstock or out of stock scenario, which will cost loss of profitability to the retailer. AI can be used to predict market using sales history, promotions and trends to generate outcomes, which are 90% accurate. Optimizing this problematic process will reduce financial risks linked with excess stock and under-performing products.

AI is the new disruption in the tech space,and it also helps retailers to sum up data to generate a robust algorithm to earth insights about customers, demand and supply chain strategies it is too fascinating to let go.

Tags:

Web Design

Technology

Gagets

Development

Business innovation

Business process design

Customer Experience Strategy

Machine Learning & AI

Operationalizing

Rakia Finley

Rakia Finley is the Founding Partner at Copper & Vine Studio, an American software executive, Women in Tech Initiative Leader, full-stack developer, Salesforce MVP, mother, private investor, and philanthropist. She is best known for her work with the Obama Administration on their "Girls in STEM" initiative and continues to develop innovative technology solutions and community initiatives that promote diversity in STEM for girls of color. Named FemTech's 2016 & 2017 Powerful Woman Programmer, she is one of the highest-earning African-American females in the software industry and North America's first black female owner of an Artificial Intelligence (AI) software and product development firm. Raised by a single mother in Portland, Oregon, Rakia would spend her evenings waiting for her mother to get off work. Her time in the office is where Rakia got her first chance to enter data into a custom database. At 15 years old, she had convinced the executive team of the Washington Hospital Center to hire her on a contract basis to provide data entry to their billing department. After one year of working in the Hospital's billing department, Rakia produced the efforts of a five-person database team on her own and converted a 78% paper process to 10%, moving their 2002 billing system to a fully digital data gathering solution enhancing their medical input to a 98% accuracy metric. By 19, Rakia was the founder of PinStripe Consulting, a database development firm. After delivering over 500 custom database solutions to nonprofits, she launched Surge Assembly, a full-service software development firm focused on enhancing company revenues. Her determination for better software-led her to build a custom AI solution for Starwood Hotels in 2006, making them one of the first leading hotels with virtual booking and room management. In 2015, Rakia Co-Founded FIN Digital, a full-service firm, building artificial intelligence and hardware applications for founders and organizations. She has also emerged as an entrepreneur's dream come true, designing products for founders that average over $27 million in an acquisition.

All Posts

You Might Also Like

How Do You Know it's Time to Hire a Digital Transformation Agency?

Digital transformation is the approach to adapt technologies for successfully managing the growth and evaluation processes for businesses. It is a series of adaptations that transcends from the human level to the organizational scope of the company. Companies need to have a clear idea about digital ecosystems and how they can help to build a culture of innovation to benefit customers and employees alike.

Industries Still in Need of Technology Innovation

Technological change fueling growth is slated to intensify as advanced robotics, cyber-physical systems and artificial intelligence take the digital revolution to the next level. On that note, let us take a look at industries that have not yet been penetrated by technology innovation.

Small Habit Changes for Better Productivity

Our lifestyles can lead to stagnation and frustration in our professional lives. We feel even more tired and irritated to follow the same routine, day after day. But when we become more productive in our work life, we become more efficient in utilizing the value of our time. When we become productive, we work more smartly and healthily and have plenty of time for ourselves and our dear ones.