Artificial Intelligence In Retail: Leveraging the Next Step In Customer Engagement

Artificial Intelligence (AI) is globally available now and changing the eCommerce landscape. Retailers are leveraging technology to enhance their business. A quick look at the retail sector shows how the capabilities of artificial learning helping the retailer to understand their consumers better, connect with them, and develop a superior customer experience.

Is the use of Artificial Intelligence in the retail market growing?

As per research by Global Market Insights, Inc, penetration of Artificial Intelligence in the retail market will grow 8 billion USD by 2024. Artificial Intelligence in the retail market is driven by increasing investments worldwide. This developing interest can be attributed to the wide use of machine learning, predictive analytics, and deep learning. Moreover, AI is set to release the following phase of the digital disruption in retail – and the significant players in the sector are increasing their digitization efforts as a result.

How is Artificial Intelligence helping retailers?

There are lots of ways in which AI is benefiting retailers worldwide to truly connect with their digitally savvy customers, here are some:

1. Foreseeing Customer Behavior Using AI

When it comes to achieving better customer experience, it’s crucial to understand the need and desire of the customer. Artificial intelligence (AI) could make the shopping experience much easier, especially with the rise of deep learning.

Deep learning, a subset of AI, can possibly change the future of marketing by helping businesses to anticipate customer behavior. Deep learning gives an approach to led AI to predict outputs, given a set of inputs. Thus, while comparing with machine learning, AI requires fewer data processing by humans.

Once you understand customers’ behavior, you are ready to understand your buyer personas. This, further, leads to buyers’ decision making via artificial intelligence system.

2. Personalization Services with Better Shopping Experiences

Artificial intelligence can target customers based on their searches, past purchases, likes, and comments in order to deliver personalization experience. And, customer experience gets better when personalized services are offered. The procedure tends to their particular needs more precisely, resulting in maximum satisfaction with the product as well as the shopping experience.

AI is beneficial as it gathers customer information and creates a bigger image of the customers’ needs and preferences. This helps retailers to satisfy customers’ needs in an easy way.

With AI chatbots, customers get what they need and feel that they are important to the business. This way, there’s an increase in customer engagement as well as experience. And, maximum engagement helps retailers to enjoy a quick selling process and increase in revenue. This helps to fill the gap between the customers and the brand, further helps business to grow.

3. Automating Customer Interactions

Gartner predicts, “By 2020, customers will manage 85% of their relationship with the enterprise without interacting with a human.”

Customer interaction plays a crucial role in customer experience and the right AI tools can benefit you to deliver a focused, responsive, and reliable support experience. Customer interactions, for example, online chat, social media conversations, telephone calls, emails need whole involvement of humans. However, AI is engaging companies to mechanize these interactions.

By analyzing the data gathered from previous interactions, it is possible to program PCs to respond to customers precisely and manage their inquiries. Likewise, when AI is combined with machine learning, the more the AI platforms interface, the better the progress.

AI chatbots – such as Siri or Google Assistant on your phone, or Cortana on your desktop – can be used to address customers’ common queries, solve issues, and give expert customer service.

4. Predicting Outcomes

Another good point of AI is that it has the ability to predict the future outcome based on data analysis. Predictive analytics tools are integrated into customer support, it will be easy for retailers to understand their interaction quality by knowing in advance – the customer satisfaction level and overall customer experience.

AI can make predictions about what customers would need, which ultimately benefits retail companies. Such predictive analysis help to understand customers as per their choices, likes and visited contents. This drives better engagement on your online retail shop.

5. Improve the Recruitment Process

AI helps businesses automate the recruitment of new employees. It can quickly filter through applications, automatically rejecting those which don’t meet the company’s personal requirements.

This not just spares time or cash spent on the recruitment process of the company, yet it also ensures that there is no segregation or bias in the shortlisting procedure. The available AI projects can even deal with the numerous administrative tasks of recruitment.

6. Encouraging Customer Purchases with Retail Virtual Assistants

There are a few AI systems which include chatbots such as Alexa, Siri, or Google Now that are designed to communicate personally with humans. This makes it conceivable to robotize customer service, with chatbots currently in use to offer reliable customer service and support.

A few companies such as Pizza Hut, Staples, Starbucks, and Whole Foods are already using chatbots to enable their customers to make purchases just like retail companies would. This ensures the progressive future of AI as it tracks customer behavior with the help of chatbots in order to enhance their buying experience.

7. Safety and Security

Cyber-attack is one of the biggest threats that businesses are facing these days. To get out of this threat, safety and security is a must. Security specialists must channel through and continue analyzing the vast amount of data that include computer usage at different times, user logins, and activity on system infrastructure.

Given the assurance of cybercriminals, these safety measures are constantly vulnerable to infiltrations as individuals are unable to keep up with all the data.


With the machine learning technology, AI system can be skilled to learn existing patterns, and recognize any deviation in it and report it progressively. We can train AI networks to go one step further and improve their methodologies using information from creating airtight security that cannot be breached.

Final Thoughts

The growth of artificial intelligence (AI) is, unavoidably, beneficial for businesses and the next step in customer engagement. This helps in offering a new level to the customer experience. A level where they get what they wish to see in their first look without any glitch. And can finally make use of the unlimited amount of customer information available.


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