Trendspotting: The future of AI for retailers
Trendspotting: The future of AI for retailers
Artificial Intelligence has infiltrated nearly every aspect of our lives. It has become unavoidable. It won’t be long before we bow down to our AI overlords. Until that time eventually arrives, it would behoove retailers to best take advantage of the AI currently available — and logically, many, if not most, are.
A recent report by Everseen, a leader in vision AI for global retailers, Everseen Insights: The Future of AI in Retail, revealed key insights into the evolving role of AI in retail operations and shopper interactions. These insights included:
- Retailers are investing in AI to drive results: Nearly two-thirds (63 percent) of retailers said AI is critical to maintaining a competitive edge, and they expect an average 51 percent return on investment from AI deployments within the first three years.
- Consumers see AI benefits: More than half (55 percent) of consumers are comfortable with AI and advanced retail technology, and nearly two-thirds (65 percent) said AI makes shopping more convenient.
- Loss prevention is a shared concern: 85 percent of consumers believe theft contributes to higher prices, and a majority of retailers (60 percent) have already turned to AI to address the issue.
- Transparency is critical: 72 percent of consumers want greater transparency about AI use in grocery and retail stores. Retailers are already using multiple disclosure methods, including signage at entrances (44 percent), which 64 percent of consumers find helpful. Half of consumers also cite self-checkout pop-ups as effective.
“AI is already transforming retail — driving efficiency, reducing shrink and enhancing customer experiences,” said Alan O’Herlihy, CEO of Everseen. “It's encouraging to see the shared perspective of consumers and retailers on how AI can improve the shopping experience. The insights from this report can help the industry align on key success factors for AI, including measurable impacts on shrink reduction and the importance of transparency."
AI is already playing a major role in loss prevention, with 60 percent of retailers having implemented AI and another 30 percent planning to do so within the next year. Consumers are equally attuned to the issue — nearly three-quarters (74 percent) believe theft leads to store closures, and 59 percent believe AI technology, such as product recognition at checkout, can help reduce it.
Retailers rank better customer service and support (31 percent) and improved store layout and navigation (31 percent) as top benefits. Consumers see AI improving their experience through faster checkouts (44 percent), better inventory management (43 percent) and more personalized shopping (24 percent).
Despite the optimism, AI implementation does come with challenges. Retailers cite time and resources for training (47 percent), customer acceptance and trust (46 percent) and integration with existing systems (44 percent) as key hurdles.
