How is Ai Used in Retail – Significance of AI in Retail

How AI is Currently Used in Retail? Explore the tech journey in this post and see how world changes for a good?
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How is Ai Used in Retail

Traditional analytics have been a great fit for the data-driven retail industry for decades. Deeper business insights are now possible thanks to a completely new degree of data processing brought forth by artificial intelligence (AI) and machine learning (ML). Data scientists extracting anomalies and correlations from hundreds of AI/ML models could open up a new world of opportunities for business owners. 

How AI in Ecommerce Drives sales

Artificial intelligence applications in eCommerce allow companies to provide e-commerce site search one-of-a-kind experiences for their clients, ultimately increasing happiness and the bottom line.

How AI is Currently Used in Retail

Artificial intelligence solutions still have a lot of room to improve in 2022. However, we can already provide you with several instances of applications of AI in the real world that have a positive impact on business. Here are some examples of how AI is transforming the retail industry.

Top 10 Uses of AI in Retail:

  1. Stores May Stop Having Cashiers:

Reduced wait times, a reduction in the number of human personnel, and significant operational cost reductions are all benefits of retail robotization. Checkout-free stores have already been implemented by Amazon AI. When you take an item off the shelf or put it back, the Just Walk Out and Amazon Go system responds. The Amazon account will debit your credit card when you leave the store carrying your purchases. Amazon intends to create more AI-powered stores like Amazon Go, where just six to twenty human employees are required.

  1. Automated Chatbots for Customer Service:

AI chatbots offer even better customer service, enhance searching, notify users of new collections, and recommend related goods. A chatbot can propose a snapback to compliment a customer’s black hoodie, completing the appearance if they already own one. Eighty percent of brands globally either employ AI chatbots now or will do so soon. Chatbots have been introduced by Tommy Hilfiger and Burberry to assist their shoppers in navigating their collections.

  1. In-store Assistance:

Retailers also make investments in technologies that benefit both store employees and customers during the buying experience. Paper price tags are no longer needed in Kroger shops because of Edge technology; instead, smart shelf tags are now in use. On the displays, this technology also offers video advertisements, nutritional information, and promotions. Customers can use Lowebot, an autonomous in-store robot from Lowe’s, to help them in various languages find what they need in the store. Due to its real-time monitoring capabilities, it also aids in inventory management.

  1. Price Modifications:

Retail applications of AI could assist companies in setting prices for their items by displaying the anticipated results of various pricing strategies. Systems gather data about other products, marketing initiatives, sales numbers, and other information to carry this out. Business owners can present the best deals to attract new clients and increase revenue. eBay and Kroger already use artificial intelligence to enhance their prices, and they maintain flexibility by being able to change their prices and promotions in response to the data they get.

  1. Price Predictions:

Price forecasting is the process of estimating a product’s price based on factors such as demand, seasonal trends, its properties, when new versions of the same thing will be released, etc. Although the travel sector is where it is most obviously employed, it might also be applied to the retail sector. Just envision a tool or service that notifies your customers in advance when a given product’s pricing will change. This is feasible and simple to achieve with artificial intelligence. You might increase client loyalty by using a price prediction feature. But in the retail sector, predictive analytics and machine learning might accomplish far more than merely predicting prices.

  1. Visual Search:

Customers can upload photographs and use Visual Search systems that use artificial intelligence to locate products that are comparable in terms of colours, forms, and patterns. Cortexica’s image recognition technology guarantees accuracy of nearly 95%. Ninety percent of customers rated The Find Similar feature favourably. The visual search feature of American Eagle’s IR technology proposes complementary items in addition to helping users find matching or similar clothing.

  1. Tracking of Customer Satisfaction:

Artificial intelligence is able to determine your consumers’ emotional state as they purchase. For this purpose, Walmart has already launched facial recognition technology. Each checkout lane has cameras mounted, and if a customer becomes irate, a shop employee will approach him or her. Mood monitoring will undoubtedly aid in improving customer relations.

  1. Prediction of Consumer Behaviour:

Business owners can employ behavioural economics and create individualised client relationships with the help of platforms like Personali and other artificial intelligence systems. In order to enhance sales, Personali has an Intelligent Incentive platform that examines each customer’s psychology and emotions. The algorithm analyses the emotional reactions and behaviour of the client throughout past purchasing experiences and attempts to generate the best pricing offers for a specific visitor.

  1. Online Dressing Rooms:

Another fantastic application that deserves to be mentioned is this one. Customers can save time and find the ideal outfit with all the components correctly matched in just a few minutes by using virtual fitting rooms! Me-Ality’s virtual fitting kiosk can scan you and measure 200,000 points on your body in just 20 seconds. After installing these scanners in their stores, businesses including Levi’s, Gap, Brooks Brothers, Old Navy, and others saw significant boosts in sales.

  1. Voice Search:

To give customers a straightforward and rapid voice search experience, major retailers including Walmart, Tesco, Kohl’s, Costco, and many others use Google or Amazon AI technology. Customers can now just ask Alexa for the item they want and the status of its delivery without having to type anything. In actuality, 27% of mobile users globally use voice search, and 52% of them find it more convenient than mobile apps and websites.


The use of AI has done remarkable wonders in the field of e-commerce. In this world of retailers where survival of the fittest and the best is only possible, we advise you to employ the technologies of AI in your business and stand out as a distinguished merchandiser. Folio3 with its team of committed Data Scientists and Consultants at the machine learning business, has completed end-to-end projects in machine learning, natural language processing, computer vision, and predictive analysis. Allow us to assist you in developing a smart search experience that enables you to rapidly and intelligently respond to user search queries, maximising conversions and enhancing the shopping experience.