Six Ways AI is Changing the Retail Landscape

The retail industry is changing quickly. As consumers demand more and more convenience, AI has become an essential part of the business world in order to keep up with evolving customer behaviors.

In this article, I am going to talk about some ways that AI can be used for retail and how it’s transforming the way we shop.

6 Ways AI is Changing the Retail Landscape

As consumers demand more and more convenience, AI has become an essential part of the business world in order to keep up with evolving customer behaviors.

1) Shopping within a text message

Businesses are using AI to make shopping easier by allowing customers to shop directly from their phones.

This saves time as you don’t have to collect your phone when you’re walking around trying to decide what you want. It also allows you to browse different stores easily without having to touch anything or take up any additional space in your bags/purse. This is particularly useful for those who are at the mall with their kids or don’t want to lug around a large shopping bag.

Businesses are using AI to make shopping easier by allowing customers to shop directly from their phones. This saves time as you don’t have to collect your phone when you’re walking around trying to decide what you want.

WeChat, one of China’s most popular messaging apps, offers an “online shopping” platform that connects retailers and consumers seamlessly through text messages – making it easy for shoppers to buy from their favorite stores.

2) Chatbots

One of the most popular ways for retailers to use AI is by using chatbots. These bots are designed specifically for customer service and can be used in a variety of different situations like when someone wants information on an item or needs help with shipping, they don’t have to call customer service; instead they just ask the bot.

The best thing about these bots is that it helps reduce wait times because customers won’t need to wait on hold while waiting for someone at the customer care center who might not know what you’re asking anyway!

Chatbots are also becoming more popular thanks largely to Facebook’s chatbot experiment. However, retailers should note some important drawbacks as well: people still prefer human interaction and many find them annoying after a while. They can also lack context awareness which means if a question requires knowledge from past conversations between two individuals (e.g., personal contact info), chatbots can’t answer.

People still prefer human interaction and many find them annoying after a while. They can also lack context awareness which means if a question requires knowledge from past conversations between two individuals (e.g., personal contact info), chatbots can’t answer

Another downside to using AI for customer service is that it doesn’t always have the capabilities of understanding certain dialects or accents, so these types of customers may not be able to get their questions answered in real-time without someone at a call center who understands what they’re asking about even though there’s an automated bot on the other end!

One example would be if you had a Canadian accent and were trying to ask your bank about exchanging currency because you’re going on your holidays. The chatbot would be unable to understand what you were asking, even though it was programmed for this type of question!

3) Image recognition

Another way AI is being used in the retail world, specifically for brands that offer a wide array of products, is through image recognition and online shopping.

For example: if you were looking to buy makeup from Sephora’s website – but can’t remember what color lipstick might look good with your skin tone(s) – you can just take a photo of your face and the website will tell you what lipstick would look best!

This is also great if you’re ordering online because not only does it allow for quick shopping decisions, but this also makes returns easier too. You don’t have to go through all those steps in the process of making sure that you’ve picked the right color, you just take a picture of the lipstick and send it back.

This is also great if you’re ordering online because not only does it allow for quick shopping decisions, but this also makes returns easier too. You don’t have to go through all those steps in the process of making sure that you’ve picked the right color, you just take a picture of the lipstick and send it back.

You can also use image recognition to find specific items in stores that might not be on sale or right next to each other but would go well with each other if they were together!

This is great for example when someone who’s looking at red shoes sees an orange dress in a store and realizes that they would look great together!

This is also an easy way to find items on sale because it’s just another way of using the “item search” function, but instead, you’re inputting text from what you see in the picture rather than typing out everything yourself.

4) Conversational commerce

But another way AI is changing the retail landscape is through conversational commerce or chatbots.

The best thing about these bots (as opposed to just using an app) is that it helps reduce wait times because customers won’t need to wait on hold while waiting for someone at the customer care center who might not know what they’re talking about about (as mentioned earlier).

They also help reduce the number of customers who call in because they have a ton of questions. Instead, they can just chat with an AI and not need to repeat themselves or feel like they were bothering anyone when asking for clarification on a certain product!

This is especially helpful for customers who are in the store, too! Instead of having to go up to the customer care desk and wait on hold while they answer questions, a chatbot can help with all those things so that people won’t need to leave their spot at checkout.

5) Smart shelves

Another way that AI is making retail more efficient and cost-effective is through smart shelves.

The idea of these types of store displays has been around for a few years now, but before they were mostly just used to show consumers where the products are in the store – which was helpful because it made finding something quick and easy!

But now, these types of displays are actually being used to recognize what items people take from the shelves, and then they can charge them for the products.

This is a great way to help reduce theft because it’s not possible to just walk out with an item without paying for it anymore!

In addition to this, customers don’t have to carry their items out to the checkout counter because it’s all done through a scanner and barcode.

6) Advanced AR (or augmented reality)

The final way that AI is helping to change the retail landscape – and this one might be a little more futuristic than others – is through advanced AR.

This technology has been around for years now, but it’s slowly progressing towards something better. Right now, what we have are virtual items or characters inserted into our physical environment (or augmented reality), but what’s coming is something more advanced.

Soon, this technology will be able to make our physical environment interactive – or the digital world and the real world are blended together (think Pokemon Go!)

This means that instead of having a billboard on the side of your street, companies could create experiences for customers who walk by with AR!

In Conclusion

The rise of AI in retail has been happening for years now, but there are still some ways that this technology is changing things up – both for consumers and retailers!