According to the latest report from the World Economic Forum at Davos 2023, the global artificial intelligence (AI) in retail market was valued at $5.50 billion in 2022. Projections are set to skyrocket from $7.14 billion in 2023 to a whopping $55.53 billion by 2030, representing a Compound Annual Growth Rate (CAGR) of 34.1%.

In the quest for heightened profitability and productivity the Forum asserts that retail businesses must swiftly invest in AI to ensure success and maintain a competitive edge.

Types of AI being introduced by retailers include:

1. Personalised Shopping Experiences:

AI can analyse customer data to understand individual preferences and behaviours. This enables retailers to provide personalised product recommendations, special offers and content tailored to each customer, leading to increased customer satisfaction and higher conversion rates.

2. Pricing:

AI algorithms can continuously monitor market conditions, competitor pricing and demand to adjust prices in real-time. This ensures that retailers remain competitive and maximise revenue.

3. Chatbots and Virtual Assistants:

AI-powered chatbots and virtual assistants can handle customer enquiries, provide product information and assist with the purchasing process. They operate 24/7, improving customer service and freeing up human staff for more complex tasks.

4. Visual Search and Image Recognition:

AI allows customers to search for products using images rather than text. This makes it easier for customers to find what they’re looking for and it can also lead to increased sales as a result.

5. Fraud Detection and Prevention:

AI can analyse vast amounts of data to identify patterns indicative of fraudulent activity. This is crucial in protecting both customers and retailers from online fraud.

6. Customer Insights and Market Research:

AI can analyse social media data, customer reviews and other sources of information to provide retailers with valuable insights about customer preferences, market trends and emerging consumer behaviours.

7. Enhanced Visual Merchandising:

AI-powered tools can analyse customer behaviour within physical stores, providing insights on how to optimise store layouts, product placements and overall visual merchandising strategies.

8. Voice Commerce:

Voice-activated assistants like Amazon’s Alexa and Google Assistant are becoming more integrated with shopping experiences. This allows customers to make purchases using voice commands.

9. Improved Customer Feedback and Sentiment Analysis:

AI can analyse customer feedback, reviews and social media mentions to gain insights into customer sentiment. This information can be used to improve products, services and customer experiences.

Investing in the right AI

AI has the potential to revolutionise the retail industry by making operations more efficient, enhancing customer experiences and enabling retailers to make data-driven decisions. However, it’s important for retailers to approach AI implementation with a thoughtful strategy with tangible objectives and measurable results. This is where Caerus from Gaea stands out over other AI investments.

Caerus from Gaea – tangible objectives and measurable results: maximise sales and growth.

Caerus delivers substantial increases in sales and profits while minimising waste and mitigating risk. Leveraging the world’s only Large Geotemporal Model (LGM), Caerus continuously scans vast datasets, providing unmatchable precision in identifying opportunities for product demand surges driven by ever-changing climatic conditions.

Fluctuations in climatic conditions are occurring with increasing regularity and impact, actively reshaping consumer demand for products beyond the scope of traditional retail prediction methods and use of their historic sales data. Through proactive alerts, insights and user-friendly visual dashboards, Caerus presents you with unique opportunities to maximise sales, drive growth and enhance brand loyalty by accurately meeting consumer demand surges.