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Three Use Cases of AI for Retail
Data-driven insights from in-store IT systems and e-commerce provide a leading indicator of purchase trends
FREMONT, CA: E-commerce saw a significant increase throughout the pandemic. Retailers adapted to the new climate by offering online ordering and curbside pickup. In addition, brands used novel narrative and direct-to-consumer selling strategies to fill any gaps left by the pandemic, relying on consumers' emotional dependence.
Many local businesses were forced to close or rebrand as dark stores, empty storefronts that serve as warehouses, or supply depots. In addition, local stores installed online point-of-sale systems to promote the touchless operation, raising the relevance of omnichannel. In the post-Covid landscape, there are three key opportunities to embrace digital transformation.
The emergence of the Endless Aisle
[vendor_logo_first]With the "ship from store" and "ship to store" tendencies, the epidemic altered retail stores, giving them a new role. Retailers are capitalizing on this trend by marketing the "endless aisle"—a seamless shopping experience that allows you to start your buying excursion online, finish it in-store, or vice versa, and keep the shopping loop continuing indefinitely. Endless aisle also addresses the problem of "empty shelves" by allowing customers to order directly from the aisle via kiosks, tablets, and mobile devices. The pandemic served as a tipping point for many shops to embrace digital transformation focusing on data-driven tactics to implement the endless aisle concept effectively.
AI Goes Mainstream
Data security is still a significant problem. Brands are adopting "privacy first" and "privacy by default" strategies, another digital transformation path that supports transparency and better privacy for consumer data, especially those with a worldwide reach. Data-driven insights from in-store IT systems and e-commerce provide a leading indicator of purchase trends. Inventory and business efficiencies are better than ever thanks to predictive analytics based on collected data. In the retail industry, artificial intelligence has progressed from a buzzword to reality. As demonstrated at Covid-19, digital transformation, aided by artificial intelligence, assists merchants in remaining competitive.
Despite the obvious financial benefits, co-opetition proved challenging to achieve due to mistrust and data integration challenges when sharing data between various platforms. With blockchain and big data tactics, businesses can now construct a loyalty program to share effortlessly while examining the trade-offs. Loyalty pooling is now possible in the retail space with simple sign-on programs thanks to blockchain. When many local shops closed, direct-to-consumer brands stepped in to fill the hole. Direct-to-consumer firms are forming alliances with local stores to continue their success story as consumers quit computer screens and return to street shopping.