AI in "Retail"
Artificial Intelligence in Retail Industry is being applied in new possible ways across the entire life cycle of the industry; from product to service - from production to customer service interactions.
Business Challenges
The Retail Industry is constantly changing and there are always new challenges faced by the players in this competitive industry. Customer preferences will always change, sometimes even faster than one can imagine. Apart from seasons and trends, several other factors such as economic circumstances, advertisements, and competition in the retail industry have huge impact on consumer demand. Retail has complex operations and managing its internal communication is not an easy task. Inefficient communication between divisions can disrupt the business processes.
How can AI help?
For decades, traditional analytics have worked perfectly fine for the data-driven retail industry. However, Artificial Intelligence (AI) and Machine Learning (ML) has opened new doors for data driven approach which leads to deeper business insights. Combining rich customer and casual data with the power of ML is enabling retail companies to optimize supply chains, pricing and trade promotions with highest level of accuracy. By implementing AI, retailers are able to handle the number of models deployed in each store resulting in a reduction in supply chain costs while helping to deliver an optimal experience for customers.
Use cases
Demand Prediction: A highly accurate demand forecast is the only way retailers can predict which goods are needed for each store location and channel on any given day—which in turn is the only way to ensure high availability for customers while maintaining minimal stock risk. Machine Learning makes it possible to consider their impact at a detailed level, by individual store or fulfillment channel.
Customer Recommendation: Recommendations typically speed up searches and make it easier for users to access content they’re interested in, and surprise them with offers they would have never searched for. Recommendation System, which uses ML algorithm, has seemed to be an integral part of any retailers, e-commerce sellers, and merchandisers not only due to its simplicity but also due to its ability to unlock business values that is usually hidden within massive chunks of transaction data.
Price Predictions: Sometimes retailers face challenges when it comes to making a decision on price changes. For most of them, seasonal trends and tendencies are given priority in making those decisions. Using predictive analytics here can help identify the best time to start decreasing or pushing prices in the other direction. AI can monitor features such as a pricing map of the market and compare demands to find out what the prices should be like.
Supply Chain Management & Logistics: AI helps retailers understand exactly how their supply chain is operating, make improvements throughout and eliminate waste and overhead costs. AI has numerous applications across the retail supply chain including but not limited to autonomy, modeling, forecasting and optimizations which can reduce supply chain delays, optimize demand and foster capacity planning and significantly reduce costs.
Customer Service and Compaints Resolution: The use of artificial intelligence in customer service is not only revolutionizing the customer support function but also improving customer loyalty and its brand reputation. Thanks to the availability of tools like AI-powered customer service bots, companies in the B2C industry segment are increasingly entering an age of automated customer service that is boosting the brand experience for customers.
Why choose us?
It’s no secret that adopting AI technology is key for retailers to succeed. Still, some organizations aren't yet investing. Why? Uncertainty about how to begin, a perceived skills gap, and general conservativeness in the use of technology are the primary barriers.
We at RadomeTech believe AI is crucial for every business entity. Thus we have a developed a tool which lets the user have the power of Artificial Intelligence and Machine Learning !