The Rise of AI in Retail: What You Need to Know
May 5, 2023
In Retail Today, ChangeUp’s Retail Technology Strategist, Patrick Madden, dives into the hot topic of AI and how its limitless potential is swiftly reshaping the retail landscape.
The retail industry is on the precipice of a monumental shift, driven by the rapid advancements and expanding capabilities of artificial intelligence (AI). At its core, AI is not an unfamiliar concept to countless retailers who have been leveraging the technology for over a decade in various manifestations, including product recommendation engines that curate personalized offerings, inventory management platforms that help predict demand, and supply chain optimization services that optimize lead times and identify bottlenecks.
Undoubtedly, the significance of AI in retail has reached unparalleled heights in today’s digital era, thanks in large part to the advent of Large Language Models (LLMs) like GPT-4, the underlying engine powering platforms like ChatGPT. These sophisticated AI models possess the transformative potential to reshape the entire consumer-brand dynamic on the internet. Virtual shopping assistants powered by LLMs can provide real-time product recommendations, answer complex queries, and offer tailored promotions, all while emulating human-like conversation.
Likewise, impact of LLMs extends beyond the virtual realm into brick-and-mortar stores, where they can reshape the way we think about in-store experiences. Augmented reality personal shopping guides that live on your phone and learn your product preferences across brands and retailers. Digital signage that generates on-demand content and electronic shelf labels with messaging personalized just for you. AI-powered robots that autonomously roam the sales floor and spark human-like conversations with shoppers.
If you’re a skeptic of what modern-day AI engines are capable of, here’s a surprising fact that may challenge your preconceptions;
Every word, sentence, and paragraph of this article that you’ve read so far was crafted by an advanced AI engine.
