The artificial intelligence (AI) revolution is real and you're going to see it explode in a few months when you're celebrating the holidays and hunkering down with family to spend quality time together as you enter the New Year.
While the retail industry has experienced a slump in recent years, with brick and mortar stores closing at alarming rates, think of this as an evolution, rather than the death of an industry. Tech like AI will bring the retail field back in full force in the coming months and going in to 2019.
For a glimpse into where this industry is headed, read on and consider the following points.
Expect the holiday season to see a huge revenue upswing – thanks to AI
We can expect to see a 35% upswing in retail revenue this 4Q18, thanks in large part to AI.
The rise in mobile technology is a huge reason for this since people are consistently upgrading their phones, tablets and subscribing to services that elevate their shopping experience. Virtually every retailer today has an app and these apps us AI to market to customers and send them deals.
Retailers are also using artificial intelligence to pass along recommendations for items customers may want to purchase. Further, these companies are doubling down on their social media efforts, with Instagram leading the charge as the preferred outlet for retail brand storytelling.
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IBM is stepping up as an industry leader
While retailers are continuously honing their using of AI, it's the tech companies that are laying the foundation by investing in the infrastructure that will continuously grow. IBM is leading the charge, funding and creating AI that will optimize the customer experience.
They've even created AI technology that can help customers decide on what looks best on them based on what they try on in the store. The company is incorporating this technology into retail store mirrors, and the data will be synced by using the retail store's app.
As you can see, this is the next evolution of retail marketing, so expect to see these sorts of developments paying huge dividends this holiday season.
There are a number of ways AI is becoming useful in retail
It's also important to know what sort of AI developments will be the most common among retailers.
You can expect data garnered from artificial intelligence to pay huge dividends with everything from delivery and supply chain management to payment processing. The field of AI is growing by leaps and bounds in large part due to how commonplace these changes will become.
You can also expect to see retail companies making manufacturing changes based on AI-driven data. This will save them a huge amount of money in the process.
For instance, the popularity of items sold in retail chains generally varies based on location. Rather than amass items with a one-size fits all strategy, stores can decide how much to stock based on data and AI. This prevents having to get rid of old inventory that isn't selling and reduces fiscal waste across the board.
Expect these sorts of developments to become incredibly commonplace all over the retail space and consider these tips to understand the way that AI will continue to develop this holiday season and beyond.