Market Trends of America's AI in the Retail Industry
This section covers the major market trends shaping the America's AI in the Retail Market according to our research experts:
Machine Learning Technology is Expected to Grow Siginificantly
- Machine learning is one of the key technologies that is expected to create value for retailers as more and more businesses take advantage of Big Data. Retail companies are using advanced analytics to get insights into consumers buying behavior. Additionally, it also helps retailers in merchandise planning and size optimization.
- Moreover, AI is revolutionizing shopping experiences by making them more personalized, efficient, fruitful, and relevant. Amazon introduced the Amazon 4-star retail store that will showcase 4-star products rated based on its product recommendation engine that identifies trending products and customer's favorites.
- According to IBM, 62% (global) of retailers reported that the use of information (Big Data and analytics) is providing an edge for their organizations. Such non-relational databases are ideal for real-time applications that generate huge amounts of data, making them suitable for deploying machine learning algorithms.
- The US-based Prism Skylabs offers solution for retail outlets, that use the data from their existing surveillance cameras and use predictive analytics to enhance merchandising, store design, and inventory management. Camera data feeds into an algorithm which can, for example, analyze how customers move around the space to help retailers optimize the layout of their store, ensuring the best chance of making sales. The tool is ideal for small and medium enterprises.
- In the Latin American region, AI is expected to be one of the major enablers of retail businesses given the rapid proliferation of mobile networks and expansion of research capabilities in AI in the region. Santiago-based startup Arara has been working on building AI solution for diverse retail business cases. The company has been able to raise USD 500,000 in funding and has promised to develop solutions that will increase sales by 30% by predicting purchase intentions.
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Food and Grocery to Augment Significant Growth
- AI in the food and grocery retail market helps in the pricing and promotion of the products in the store. For instance, Harps Foods in Springdale, Ark., has been working with Daisy Intelligence, to improve pricing and promotions in its circular. Daisy analyzed two years of transactional information and pricing from Harps, with the goal of growing the retailer’s sales by 3%.
- Many foods and grocery retailers in the region have deployed AI-based solutions to optimize its supply chain operations and inventory. AI is helping the retailers in maintaining and managing their customers and understanding the buying patterns of them. AI technologies are adopted by both online and offline retail businesses to engage customers and improve sales turnover. For instance, Fresh Thyme, a grocery retailer in the region, adopted the technology for its 75 retail locations uses AI to fix the fresh supply chain of foods.
- In April 2019, Walmart unveiled a new store for the future that includes AI-enabled cameras and interactive displays, a concept called Intelligent Retail Lab in the Walmart market in Levittown, New York. The AI-enabled cameras monitor's inventory levels to determine, if staff needs to bring out meat from the back-room refrigerators to re-stock the shelves, or if some items are sitting too long on the shelf and need to be pulled out.
- Moreover, AI is helping food retailers with personal advertisement promotion by using the loyalty program to build up database of a consumer’s purchases over time. AI leverage the data to understand, which product to promote to get the customer to store.
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