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Artificial intelligence (AI) is significantly transforming the retail industry.
The retail landscape is undergoing a seismic shift, driven by advancements in AI and other emerging technologies. Beyond merely enhancing the shopping experience, these innovations are fundamentally reshaping how consumers connect with brands and how retailers navigate an era characterized by unparalleled technological progress.
Retailers are using the digital twin technology to create digital representations of stores, warehouses, or entire supply chains. A digital twin of a retail store can simulate customer footfall, predict which aisles receive the most traffic, and even determine the optimal placement of products. AI can curate real-time promotions that are tailored to each customer by analyzing a customer's purchase history, online and in-store behavior, and data related to their aspirations, lifestyle, life stage, recency, and frequency.
AI is also transforming the area of returns by predicting and preventing unnecessary returns. By analyzing customer data, purchase histories, and feedback, AI can provide insights into why certain products are returned more frequently. AI also plays a crucial role in demand detection. By examining past sales data, current market trends, social media sentiment, and even factors such as weather patterns, AI provides retailers with detailed insights into what products will be in demand.
AI for predictive and proactive carbon management can facilitate the identification of sustainable sourcing options, allowing retailers to make conscious decisions in selecting suppliers and materials. Thus, by harnessing the power of AI, retailers can pave the way for a more sustainable and responsible approach to retailing.
We explore five possible ways AI and emerging technology can transform retail.
About the author
Image of Kamaraj Chinnasamy
Kamaraj Chinnasamy
Kamaraj Chinnasamy is the Head of Retail Domain Solutions for TCS in the UK and Europe. With over two decades of global retail experience, he has delivered key milestones for retailers in the US, Sweden, the Netherlands, and the UK. He has a penchant for adopting new and ingenious approaches to addressing key problems ailing the retail industry. He has been involved in delivering optimized operational efficiencies, implementing innovative retail strategies, and driving customer-centric solutions.
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