What can AI do in the retail field? AI technology could be applied in every field of the retail industry. They used to make decisions by the experience of the retailers, but in the information age, these can be made with precise algorithms. In recent years, the main functions of AI application in the retail industry are customer service, real time pricing promotion, sales forecast, replenishment forecast and so on (Cruz-Domínguez, & Santos-Mayorga, 2016). All instructions are presented by AI technology. The application of AI technology will become a big trend and will be popularized to the whole platform. In addition, e-commerce will benefit from AI technology from the marketing point to the vital personalized service to improve customer satisfaction.

In retail, the biggest challenge for AI technology is to understand the need of the user, especially the user’s need. Who is the user? What kind of goods do users need? What service do users need? At what price do users expect to buy it? AI technology is still around the user to solve the problem. At the same time, AI technology can truly solve the overcapacity in the retail supply chain and the phenomenon of unmarketable products (Wong, et al., 2013). If the whole supply chain can be visualized, there is a market forecast of big data, which can tell the industry a more accurate market demand. According to the need of the industry to do procurement and fund preparation, the price of goods automatically comes down.

In other words, high quality goods actually depend on a strong supply chain, and the AI technology is behind the supply chain. At this point, there are relatively complete and large number of data in the e-commerce retail enterprises, from users to visit, browse the track to order, logistics distribution, after sale evaluation (Russell & Norvig, 2010). At present, many companies begin to share data, and achieve supply chain collaboration. With the ability of AI technology, it is easy to see that is become a powerful tool for retailers. This is a gospel for retailers who hope to accurately predict demand, anticipate customer behavior, optimize and personalize their customer experience.

In summary, AI technology will be the basis for retail innovation, which has been recognized by half of the global retailers. AI technology can achieve scale, automation and unprecedented accuracy. When applied to customer segmentation and context interaction, it can promote customer experience.

Reference

124. Cruz-Domínguez, & R. Santos-Mayorga. (2016). Artificial intelligence applied to assigned merchandise location in retail sales systems. South African Journal of Industrial Engineering, 27(1), 112-124.

Russell, S. J., & Norvig, P. (2010). Artificial intelligence: a modern approach. Applied Mechanics & Materials, 263(5), 2829-2833.

Wong, W. K., Guo, Z. X., & Leung, S. Y. S. (2013). Optimizing decision making in the apparel supply chain using artificial intelligence (AI): From production to retail. Woodhead Publishing Ltd.