In an era of rapidly evolving customer preferences, artificial intelligence (AI) has emerged as a game-changer for the retail industry. From crafting seamless buying experiences to optimising operational efficiency, AI offers smart solutions that can drive growth and innovation. It’s thus unsurprising that different industry leaders, such as Sterling Lanier of TurnKey and Olga Dogadkina or Emperia, are increasingly leveraging AI’s capabilities to create personalised interactions, lower costs, and enhance margins.
As technology continues to reshape the retail landscape, various AI tools have emerged as catalysts for revolutionising the industry. These tools are more than futuristic concepts. They are tangible solutions that are already reshaping the way retail businesses operate and engage with customers. Below, we explore four of these AI tools that are leading the charge in unlocking new opportunities for business owners.
Predictive analytics for a personalised shopping experience
Machine learning algorithms can analyse historical data and predict future trends with remarkable accuracy. In retail, this translates to more informed decision-making, enabling businesses to anticipate market trends and consumer behaviour with unparalleled accuracy. This level of customisation not only fosters stronger customer relationships but also drives higher conversion rates and revenue growth. See how pioneering companies like PUMA are harnessing the robust data and AI solutions of Google Analytics and BigQuery to drive transformative innovations in the retail space, ranging from generative AI shopping assistants to virtual try-ons and AI-driven loyalty programs. Early results demonstrate significant improvements in customer experience, including a remarkable 19% increase in average order value.
Chatbots for customer service
Virtual assistants leverage natural language processing algorithms to handle a wide range of inquiries, from product recommendations to order tracking, round the clock. This allows chatbots to engage with customers in real-time. The significance of this technology has already been established in the fashion industry, where retail fashion brand chatbots cater to consumers who increasingly seek a wider variety of fashion products and more sophisticated capabilities to enhance their shopping experiences. Here, business owners have found chatbots reduce battery consumption, minimise instances of conversation window freezing, and also hasten response times. Notable brands such as Burberry, Sephora, Tommy Hilfiger, Estée Lauder, and Victoria’s Secret have already leveraged chatbot technology to facilitate customer interactions.
AI-powered contract proofreading for legal integrity
Contracts serve as the foundation for agreements with suppliers, partners, and vendors, as well as the establishment of physical retail locations. Whether negotiating terms with suppliers or finalising leases for brick-and-mortar stores, the ability to effectively proofread contracts is essential for protecting the business’s assets and reputation. This is where an AI-powered contract proofreading program comes in. The Proof feature from the AI software on Definely is specifically designed to address the unique formatting and terminology of legal contracts, from detecting definition issues to catching cross-references that slip through the cracks. This enables retail entrepreneurs to expedite contract approval, accelerating the pace of business negotiations. Business owners also get to reduce the administrative burden associated with manual proofreading and focus their time and resources on core business activities instead.
AI-powered dynamic pricing algorithms for maximised revenue
Pricing stands as a pivotal factor determining the success of retail businesses. This is particularly the case for subscription-based models where striking the right balance between income maximisation and value proposition for clients is paramount. Traditional static pricing methods used to be reliant on historical data. However, with dynamic pricing algorithms, retailers can analyse demand, competitor pricing, and market conditions in real-time. This means retailers like Amazon can adjust prices dynamically, thereby maximising revenue while remaining competitive in the marketplace. It also enables retailers to implement targeted pricing strategies, such as personalised discounts and promotions, to drive sales and enhance customer loyalty.
By embracing AI-driven technologies, retailers can stay ahead of the curve and unlock new opportunities for success in the digital age. For more retail industry coverage, check out our other content on 365Retail.
