Innovation is at an all-time high, and the growth potential is just as promising. Artificial intelligence (AI) is leading the way — especially generative AI, the latest trend that’s here to stay. It’s already having a big impact on retail.
What Is Generative AI and Its Role in Retail?
Generative AI is an artificial intelligence rapidly gaining popularity and widespread use. It’s an umbrella term for AI that produces content, which is a versatile definition. Generative AI can create anything from written text to visual images, videos, audio or other forms of data. Maybe you’ve seen the proliferation of AI-generated art online recently — those pieces are all examples of generative AI.
The generative AI market is expected to reach $53.9 billion worldwide before the end of the decade, massive growth for an industry still building household name recognition. This technology’s explosion in popularity has led to rich possibilities in entertainment, education, business and more. The only limit is the user’s imagination — and with such intelligent tech, maybe the computer’s imagination, too.
“AI-generated models are opening the door for more creative and efficient retail solutions for your business.”
Generative AI is taking several industries by storm, and retail is no exception. This tech opens the door for new and diverse outputs, from creating entirely new products and services to automating a wide range of tasks. Check out some of the impacts AI generation is expected to have on retail.
Personalization for Customers
Enhancing the customer experience is one of the top benefits of embracing AI-generated retail models. Generative AI can use consumer data and wider trends to tailor the shopping journey for every individual. For example, a virtual assistant could provide product recommendations, offer special discounts based on past brand interactions and direct users to the services they need most.
Customers can use chatbots to find relevant information or products, but answers may be vague and one-size-fits-all. Improving chatbots with generative AI will enable users to move beyond standardized replies and have more fruitful conversations to find what they’re looking for.
“Customers love customization — generative AI can create personalized buying experiences for anyone who visits your site or store.”
More personalized consumer journeys increase sales, customer satisfaction and brand loyalty. Generative AI can make all the difference for retail companies.
Optimized Online Content
Any retailer who sells products online knows how competitive the internet marketplace can be. Digital marketing can be tough, from writing accurate and engaging product descriptions to advertising your page to ensure people actually visit it. That’s where generative AI comes in — optimizing your online content to put it before as many eyes as possible.
Generative AI content is getting better every day. AI models understand search engine optimization (SEO), conversions and bounce rates so you don’t have to. They create content for your retail business, from your brand website to individual product descriptions, already optimized for Google and readers.
Automated Inventory Management
Recent supply chain disruptions have left retailers in the lurch, dealing with delays, cancellations, inventory shortages and delivery mistakes. Fortunately, AI-generated models can help improve inventory management, shipping and related challenges.
Generative AI can analyze relevant data and industry trends to make recommendations for retailers. Based on your past experiences and current supply chain speeds, it will let you know when it’s time to order more inventory or send out shipments.
AI automation cuts costs and improves your company’s bottom line. A recent study predicted AI will contribute $15.7 trillion to the global GDP by 2030 — and 40% of that increase is from improved productivity thanks to hyper automation. No more wasting time and money on inventory management — AI-generated schedules will handle it for you.
Improved Fraud Detection and Loss Prevention
AI-generated security models allow you to step up your safeguards online and at brick-and-mortar retail locations. Generative AI that understands how people think can also identify would-be hackers. These security models will alert you to phishing attempts, fake purchases or returns, and other attacks on your site.
“Prevent theft at your store and fraud online with AI-generated security models that protect your employees and inventory.”
Generative AI is also used in stores for loss prevention. With self-checkout on the rise, retailers can require AI authentication to verify shoppers and track suspicious behaviour. More secure checkout methods reduce the likelihood of theft and help identify offenders.
New Opportunities for Expansion
More retailers are embracing generative AI, and the possibilities are endless. You’ll be able to optimize inventory management, build a stronger online presence and connect with your most loyal customers while strengthening your bottom line.
AI-generated models are already seriously impacting the retail industry — and they’re just getting started. Take advantage of this new technology to aid you as you navigate the future of sales and retail.