Original article can be found here (source): Artificial Intelligence on Medium
How AI will Change the Retail Industry in 2020?
Artificial intelligence is the hottest and most promising development in the tech landscape for years. According to the market firm, global AI revenues increased from $ 643.7 million in 2016 to $ 36.8 billion in 2025.
Practically all market shares, industries, and business domains are actively interested in AI and are looking to use technology for business purposes. It authorizes AI companies to reduce costs and make the shopping experience more enjoyable and efficient for end-users. Obviously, how can the retail sector get away with good technology?
According to Global firm Insights, investments in AI by the retail sector will exceed $ 8 billion by 2024. As more and more applications for machine learning, predictive analytics, and deep learning technologies have experimented with success, the digital disruption in the retail sector is happening at a rapid pace.
Globally, AI experts believe that technology provides a wide range of applications to the retail sector. In the coming year, retail will see a greater infusion of AI-based solutions into daily operations. AI will change the customer service cycle in the retail sector, and retailers and customers will need to benefit from the AI-retail syndicate.
The effect of AI
Artificial intelligence can work as a blessing to retail companies that collect and hold customer data. AI draws meaningful conclusions from huge amounts of data and helps companies create personalized shopping experiences through highly-structured webshops, intelligent in-store bots, and online chatbots. Let’s look at how AI will change the retail experience for shoppers in 2020.
Digital racks for clothing & fashion products
With the help of AI technology, clothes retail brands can generate virtual racks and trial rooms with gesture walls and touch-free monitors to find the right style, without having to shuffle through the pile. Customers can spontaneously see how a dress looks on them and browse through recommendations based on their preferences and style quote.
All of that will develop the shopping experience and help customers choose from millions of options, which is currently not possible due to space constraints within the physical store. With AI, a store can be turned into a bustling repository of design and dropping ideas that customers can choose from. Also, stores can gather deep insights into consumer behavior, optimizing their product portfolio for better retail experience delivery.
Virtual Trial Rooms for Swift Decision Making
When shopping for new clothing or clothing, trying different options can be very frustrating and time-consuming. With the help of virtual mirror rooms with digital mirrors, customers can try on clothing without having to change it again and again.
Using a movement and touch-based interface, a shopper can mix and match different outfits, accessories, shoes, etc. Apart from apparel brands, virtual mirrors make it easy for cosmetic companies and beauty brands to paint what looks like a lipstick shade or foundation on real skin without forcing consumers to apply the product.
Robotic/digital help becomes reality
Using AI-based Smart Analytics and Natural Language Processing Technology, retail stores can give customers the power to instantly get support within the store. By installing robots and touch panels, stores can help customers identify an item, answer their questions, and learn how a product makes their life easier.
With the help of customer service bots powered by AI, stores can reduce their manpower costs and provide customers with 24×7 support. This will not only improve customer service levels but also attract more buyers to the store in 2020.
Behavioral Analytics powered by AI-based surveillance
Using advanced monitoring tools powered by AI and Computer Vision technologies, retailers can capture and study customer behavior in stores. This helps them agree on engagement levels with the current store layout and optimize operations for higher engagement and revenue.
Better customer support through chatbots
AI-powered chatbots enable retail brands to engage customers effectively. With the help of chatbots, brands can handle thousands of queries at once without using a large workforce.
Chatbots can be configured to answer questions, provide shopping suggestions, and provide quick support. Using a mix of AI chatbots and humans, brands can effectively manage customers and offer customers a better solution to their problem. Customers are quick and personal.