by 2028. That’s huuuge!
As eCommerce continues to replace brick-and-mortar stores, AI is quickly becoming an essential part of modern retail operations. After all, these AI-powered technologies have shaped the way we shop, interact with brands, and even make buying decisions. From personalized and customized product recommendations to using AR technologies to buy online and data-driven approaches from brands to improve their operational processes.
All of these lead to one thing: the retail sector is on the verge of a technological revolution. And both brands and consumers will benefit from this! How exactly? Let’s find out!
AI creates a deeper relationship between brands and consumers by improving customer experience.
In the last couple of years, there has been a trend in creating personalized experiences – a trend that has been adopted by the retail industry as well. So, how can brands do that? Exactly – through artificial intelligence technologies. And the more brands leverage the power of AI for personalization, the stronger our desire for tailored experiences it will become.
In fact, according to McKinsey & Company: “Consumers across generations are not only eager for more personalized products but also willing to pay a premium for products that highlight their individuality”.
You know when you go on Amazon, you see all the products that you absolutely love and want to buy? Well, that’s AI. They analyze what you’ve previously purchased, liked, and browsed with an algorithm that stores insights about customer preferences. This is the same for Netflix, H&M, Spotify, and so many other brands.
In the end, in an era where personalized experiences are slowly becoming more advanced, AI will play an essential role in shaping the future of the retail industry—and we’re all going to love it!
No more traditional shopping! Visual search and visual shopping experience will become the new normal!
Let’s face it – in the last couple of years, more and more people have started buying products online and shifted away from going to physical stores. Now, it’s much easier just to go online and look through the products rather than browsing through multiple stores, taking hours to find the fitting shirt. And it’s even more challenging for those who don’t have that much time on their hands.
Clearly, this shift was boosted by the COVID-19 pandemic. But even now, with so many AI-powered technologies, this trend shows no signs of slowing down. With the convenience of just jumping to the websites of our favorite stores, this has become a routine for everyone.
Because of this, many platforms have started taking this experience to another level. Especially with the help of augmented reality (AR) technologies. Rather than spending endless hours browsing through various stores for the ideal item, AR technology helps us to virtually picture how a piece of clothing or furniture would look before committing to a purchase.
In fact, Google’s insights show that 61% of customers prefer retailers that offer different AR solutions. A furniture retailer can offer the chance to preview how a couch or any other item would look in someone’s house, a fashion company can help us preview items directly on our body, and an electronics store can feature AR-powered solutions to offer additional information for a product. And the possibilities are endless!
Even more so, Pinterest – the platform of inspiration for most of us, especially for clothing and decorations – has also decided to give us a little help. Pinterest’s Lens is an AI-powered feature that allows us to search products easily using photos while also allowing us to find similar items. This is similar to Google Lens.
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