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How is AI Revamping the Retail Industry

How is AI Revamping the Retail Industry?

The retail experience hasn’t changed much over the years; walk into the store, skim through the products, and make the purchase. But, retailers who want to stay ahead are gradually turning to Artificial Intelligence. AI in retail has the potential to completely transform the traditional shopping experience and push it to the following gradient with personalization, automation, and efficiency. In fact, research shows the value of global AI in retail is expected to balloon to more than 31 million dollars by 2028. So, if you still haven’t hopped on the AI bandwagon, you may soon be left behind in the retail industry’s revolution. The question is, how exactly is AI revamping the retail sector? This blog shares a rundown of everything you need to know about AI in retail.

Revamping the Retail Industry with AI:

Whether you own a minimalist grocery store or a multinational superstore, AI in retail helps to create shopping experiences that are customized, convenient, and enjoyable.


One of the most significant advantages of AI in the retail industry is automation. This becomes a massive boost if you are an ecommerce seller. Whether it’s about executing email marketing campaigns or preparing images for the website, AI-driven tools have your back. This prompts sellers to spend less time on manual tasks and more on solving customer queries. The switch to automation improves customer service instantly and, in turn, boosts a seller’s efficiency and profitability.

Cashierless Checkouts:

Cashierless checkouts feature counters without cashiers. The process involves thousands of cameras, loT sensors, and a computer vision-based system. This technology allows customers to enter the store, add items to their cart, pay for everything, and exit the store without human intervention. It means excellent customer service, opportunities to accelerate revenue, fast innovation, and intelligent operations for retailers. Yet, the magic of AI doesn’t stop here. Stores like Lowes launched the LoweBot to help customers navigate the stores and find the items they need. LoweBots also monitors the inventory to inform the store when restocking is needed.

Market Demand Prediction:

The more you understand customer buying patterns and trends, the better you can meet customer expectations. AI in retail enhances demand forecasting, identifies pricing patterns, and optimizes product placement. You can also detect which areas of your store hold customers’ attention for extended periods.

AI can also assist if you are an ecommerce seller by providing information about the website visitor count and user demographics. After that, you can utilize the data to make critical marketing decisions. For instance, you can design your next advertising campaign tailored to the buyer’s personality with the gathered data.

Product Categorization:

AI is also an incredible way to classify products. Sites like LovetheSales employed Artificial Intelligence to categorize more than a million products from various retailers. The machine learning algorithms tag commodities and organize them into categories for customers who might be hunting your store for a particular type of item.

Other sites like Lalafo leveraged the AI-driven image recognition technique to upgrade the way they work. When retailers want to update their stock, they just upload photos of their items. Afterward, the algorithm fleshes out the images, places them in the appropriate category, and suggests a relevant price. And just like that, you are all set to become a pro ecommerce trader.

Customer Behavior Analysis:

AI has drawn the bar when it comes to analyzing customer behavior. AI-powered systems can quickly analyze:

·    Dwell Time

·    Gaze Time

·    Suspicious Activity

Dwell Time & Gaze Time:

One of the high-street stores, O2, implemented AI and video technology to monitor dwell and gaze time. Tracking dwell and gaze time allows retailers to understand how customers interact with their brands. The overall aim is to understand more about the in-store experience of a client.

Retailers can make more informed decisions about the things they will sell once brands have gathered the insights. In this way, sellers can also determine the marketing value of a retailing shelf versus another. Further, AI in retail also offers personalization, including cross-selling and upselling.

Suspicious Activity:

It’s no secret stores often are exposed to vulnerabilities. Fortunately, AI-driven solutions can analyze CCTV footage and identify potentially suspicious activities in a cinch. Then, it employs a robust notification system to notify the staff. Because the system relies heavily on pose estimation and object tracking, this is an effective manner to detect fraudulent activities.

Connecting Minds with AI:

This may sound crazy, but the prowess of AI has taken the shopping experience to the next level. Clothing stores Uniqlo leveraged AI to create a unique in-store experience. Selected stores have AI-powered UMood kiosks that show customers a line of products and use neurotransmitters to measure their opinion of the color and style of the outfit. Based on that data, the kiosk then recommends products to the customers. People love this system because it doesn’t require customers to push a button, and their brain signals allow the AI to know how customers feel about the items.

Fitting Rooms of the Future:

Nothing is worse than entering a fitting room only to find you grabbed the wrong size or color. Instead of leaving the room or flagging down an employee, why not test the perks of AI? Stores like American Eagle are creating interactive dressing rooms. Under this system, customers can simply scan the products they want and see what’s in stock. Next, the system notifies the store employees if a customer needs items delivered to the fitting room.


Chatbots are one of the most notable inventions of AI in the retail industry. Chatbots help brands meet customer queries, notify prospects about the new collections, and offer them items similar to what they’ve already chosen. For instance, if a customer has already added the blue sundress to the cart, a chatbot can offer them stilettos to finish the look. Almost 80% of brands globally are using chatbots for their business.

In Conclusion:

AI in retail is revolutionizing how retailers operate. It’s a lucrative investment that empowers sellers to make smarter decisions, boost sales, provide analytical data, and bring maximum revenue in the future. So, incorporate Artificial Intelligence into your retail establishments and create an incredible shopping experience for your clients.