Companies are confident that consumers are willing to engage with AI technologies
Survey question to retailers: Thinking about in-store and online customer service; I feel that consumers would accept being served by AI-related technology (e.g. touch screen assistants, AI natural language use, chatbots).
Source: Retail Economics/CMS, 2019
Virtual Reality (VR) and Augmented Reality (AR)
VR and AR are great tools for enhancing an experience, and are already used by furniture retailers to allow shoppers to see what a product may look like in their home before purchasing it (e.g. Ikea). While the development of these technologies is exciting, our survey showed that businesses believe virtual assistants and chatbots will have a bigger impact on the industry in the future.
How retailers can educate and channel
AI can take data analytics to the next level and assist retailers in optimising the omnichannel approach by identifying patterns of shopper behaviour, making it easier to determine which marketing strategies are most effective within various channels. Using machine learning techniques applied to big data amassed from in-store technology, sophisticated algorithms can extract insights that would otherwise lay dormant.
Shopping environment analytics
With footfall to shops declining, shopping environments are more important than ever. AI systems can collate a host of different data sources to: monitor store traffic, suggest optimised store layouts, enhance display advert placements, or provide more targeted promotions to make shops more attractive destinations.
Remote stock checking
The use of robots to remotely check stock levels can also improve the shopping environment and help to increase footfall. Increasingly, retailers are integrating stores into their online offering, using them as micro warehouses for click and collect or local delivery.
Our survey showed that more than 50% of retailers and consumer brands believe that AI-driven, real-time inventory management systems would have a significant impact on demand planning, automatic stock replenishment and stock rotation. Similarly, two-thirds of shoppers polled said they would also be more likely to visit a store if they knew they could check real-time product availability online first.
Things to do now
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This insight article forms part of a thought leadership report entitled “Disruption 2.0 – Here we go again: AI in Consumer and Retail”. It was produced by Retail Economics in partnership with CMS and looks at consumers across all age groups in the UK and explores their attitudes regarding AI technologies they currently interact with, and the cutting-edge applications emerging. To contrast this, the research also includes a business survey of senior leaders from Consumer and Retail organisations, FMCG manufacturers and fashion and luxury brands, to gauge their sentiments towards disruptive technologies and the opportunities and challenges they currently face.
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