This article aims to:

Familiarize operational and strategic leaders in the retail industry on how artificial intelligence (AI) will facilitate next-level analytics and automation, which will be the strategic game changer in the near future.

The retail sector is witnessing a rapid digital transformation, and as data continues to acquire new dimensions, retailers look to transform their value chain by incorporating more advanced solutions. Here, Artificial Intelligence (AI) offers the promise of harnessing the fullest potential of ever-increasing data.

The entire perspective of retail is getting reshaped by penetration of concepts like beacon technology, robotic process automation (RPA), smart stores, and virtual mirrors – not to forget the application of big data analytics.

In the recent past, there has been an increasing focus on leveraging machine learning and deep learning-based techniques like neural networks for enhancing forecast accuracy, streamlining planning productivity, and improving scheduling etc. However, this is simply not the end, as Artificial Intelligence (AI) has much more in store for retail.

AI adoption is expected to bring tremendous changes and improvements and pave a way for a truly automated decision-making landscape in retail. More advanced forecast algorithm selection and forecast parameter optimization mechanisms will deploy the best-fit algorithm that will enhance predictive analytics accuracy, and allow retailers to have the best demand and supply figures at their fingertips.

AI technologies like natural language processing (NLP) and Computer Vision will sense demand from unstructured data; and text analytics facilitated sentiment analysis will enable tapping of unusual demand sources, including social media. In short, AI will expose the stakeholders to every bit of shot and long-term demand.

Advanced machine learning facilitated automatic data cleansing will automatically recognize inaccuracies and anomalies in the data, and corrections will be automatically applied. Similarly, Automated Hyper-parameter Optimization (HPO) will significantly reduce the human effort required for applying various hyper-parameters, thus facilitating enhanced algorithmic performance.

Capacity planning is undergoing a complete transformation, as facilitated by probabilistic supply simulations, and this will correctly help capacity analysts have the right supply responses.

Full-scale Artificial Intelligence (AI) implementation will solve the routine “What-if” conundrum, as AI-enabled automated scenario augmentation will let planners have the best options with them, enabling accelerated decision-making.

The next-generation cognitive analytics is making headway to revolutionizing entire customer in-store experience. AI-powered ecosystem comprising automated assistants, image and video analysis, and internet-of-things (IoT) will pave a way for true process reengineering. Further, advanced natural language interfaces will allow retailers to offer an excellent omnichannel experience to shoppers.

These trends are just to name a few; some of them are already under development, but are yet to mature. And it won’t be too long when the early AI adopters would be reaping benefits through their implementation. May it be achieving operational excellence, or building dynamic and resilient supply chains against the backdrop of unprecedented events like the ongoing COVID-19 pandemic, artificial intelligence (AI) will govern the success of retail companies.

Altogether, Artificial Intelligence (AI) does offer tremendous opportunities to revamping the entire retail space. However, the end decision to practically leverage artificial intelligence (AI) lies with business leaders, who now need to decide how soon they would like to enable their retail chains with next-generation intelligent and cognitive automation.

The Bottom Line

To be pathbreakers in AI adoption for gaining sustainable competitive advantage, retailers must collaborate with AI consulting experts to bring deep expertise in Data Science, Machine Learning and AI.

How Cognitive BI can help?

With an extensive experience in streamlining Artificial intelligence (AI) based automation for leading retailers – including Fortune 500 companies – Cognitive BI, Inc creates effective strategic and operational roadmaps for implementing an AI system. The experts at Cognitive BI, Inc can help you reap the benefit of a well implemented AI system. Contact us to discuss.