Is Artificial Intelligence the solution to Growing Retail Industry?

Earlier this week, Frost and Sullivan released their 2017 Global Artificial Intelligence Opportunities in Retail. The research was conducted with a series of industries connected via growth partnership service; the study focuses on commercial viability and impact of retail applications for AI, either through integration with existing workflows or by creating new ones. It also explores strategies for navigating artificial intelligence (AI) as a retail or information technology (IT) vendor, and the imperative for both to adopt a data-focused mind set. The study considered vital market players including Amazon, Ocado, and IBM. The study reveals that AI applications such as chat bots, marketing, and supply chain optimization and will help strengthen customer relationships and create growth opportunities.

The study also shows that retailers and tech industry players are investing in AI and creating opportunities that will disrupt incumbents. Some growing sectors include:Chat Bots and Virtual Assistants (AI tools of direct customer engagement allow for a seamless experience when ordering products), Marketing and Segmentation (AI models can use data sets to predict and prioritize the most successful campaigns and channels, and provide these insights to decision makers), Inventory and Supply Chain Optimization (In addition to increased accuracy and timeliness over traditional systems, AI tools can predict future supply-demand scenarios).

Commenting on the release of the study, Vijay Michalik (Digital Transformation Research Analyst) said that, “In the AI age, data is digital gold and data inequality will prove a major battleground.”

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