How AI is revolutionizing retail.
In a recent article for Forbes, Paul Lin, tech entrepreneur and CEO of Returned.com, shared ways artificial intelligence can revolutionize the retail experience for companies and consumers.
Immersive Shopping Experiences with AR and VR
With VR, customers can explore and arrange products in virtual showrooms. One example is the Costa Mesa, California, outpost of bedding brand and retailer Casper, which was refreshed earlier this year to include a Bedroom Dzzzign Center, a virtual sleep setup design. AR products like Apple Vision Pro can create enhanced product visualization by overlaying product information in a physical environment.
Tailored Shopping Experiences with AI-Powered Personalization
According to a 2024 trends report from retail software company Storis, companies will increasingly leverage AI for customization to win over customers. With AI, personalization will be faster than ever by generating custom product designs in seconds or individualized digital advertising, such as banners or emails to target specific consumers. Lin also writes that AI can analyze data to create better product recommendations based on a customer’s purchase history.
Streamlining Logistics with AI-Powered Data Analytics
Some companies are streamlining warehouse operations with real-time tracking systems that can provide real-time updates on shipments and AI-powered robots to manage inventory. AI can also help companies maximize efficiency and plan for disruptions by predicting delays in the supply chain.
Efficient Returns Management with AI Automation
When not managed efficiently, returns can be a nightmare. Using historical data, AI could help provide analytics to predict returns. It can also automate processing by authorizing and issuing refunds while minimizing fraud by detecting and rejecting fraudulent returns.
Conversational AI: Enhancing Customer Engagement in Retail
Some retailers are optimizing their websites and product listings for voice search to provide consumers with an effortless experience. AI-powered voice assistants can not only provide recommendations but also allow customers to complete transactions. In addition to voice search, text-based AI shopping assistants are also becoming more prevalent on e-commerce sites. For example, Amazon rolled out Rufus, its conversational shopping assistant to all its users in mid-July. Rancho Cucamonga, California-based manufacturer South Bay International also recently integrated MattyAI, a similar software into its site.
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