AI has long been an influential factor in retail, and it’s now so deeply integrated into the digital experience that it deserves its own category beyond just technology. Touching nearly every part of the shopper journey from start to end. But how exactly does it work – and where is it headed next?
Artificial Intelligence (AI) refers to systems such as software, robots, or algorithms that can replicate human decision-making, such as problem-solving, answering questions, and more. While general retail technology includes tools like digital screens, QR codes, and mobile apps, AI takes these technologies to the next level by making them more intelligent, personalised, and responsive – allowing shoppers to interact and experience more.
So far, retail’s most recognisable use of AI has been in personalised customer experiences. Trending shopper habits consistently show that shoppers prefer a more personalised experience, such as birthday vouchers, product recommendations based on purchase history, or restock reminders. Even something as simple as using a shopper’s name in an email is often powered by AI. We’ve seen these tactics in play well before AI became a buzzword, but their continued relevance proves just how powerful personalisation has become. The question is: how much further can it go?
Currently, AI is a part of the customer journey from start to end so it’s hard to imagine how else it can be incorporated – but this is just the beginning of the future of in-store experiences! Here are some ways we will start to see more:
Before the store visit
The customer journey starts before the shopper even reaches the store. Leaning on targeted discovery, route & timing suggestions, and real-time alerts to anticipate customer needs and promote brand loyalty. Inspiring customers to shop before they even reach a store creates a customer journey where there potentially was none.
Targeted discovery is powered by AI when for when a store has a pop-up, new location, or sister brand – identifying which customers will be interested from this information and notifying them directly.
Route timing and suggestions are advanced tools that can recommend the best day to visit based on local weather or travel time, allowing for a great incentive for customers to get out to the physical stores.
Real-Time Alerts mean AI can track shopping habits and alert users to relevant sales, stock updates, and price drops – whether they shop in-store or online. This allows for shoppers to feel inspired to buy.
In-Store AI experiences
Once the shopper gets in-store, AI takes on a new role. Instead of inspiring customers to visit, it now encourages purchases. Utilising smart navigation tools and assistance, and motion-triggered digital assets – shoppers are guided around with a personalisation.
Smart Navigation Tools are based on past purchases; AI can guide customers to the exact aisle or product they’re most likely to want first. This cuts down time exploring what’s unnecessary and allows for a more encouraged purchase.
Motion-Triggered Displays are digital assets that only activate when someone walks by. Similar to a digital screen – but more elevated through interaction. A good example of this includes fashion retail, where AI might transform a smart mirror, showing the customer how they’d look in the latest outfit.
Contextual Content displays change dynamically depending on who’s browsing, offering different visuals or prompts based on age, gender, or known preferences. Again, similar to an elevated digital screen, however AI updates what is on the screen based off important data, instead of a pre-planned and non-changeable content slide.
Checking out
After the shopper buys, AI will still be a part of the journey – ensuring a quick and personalised shop even at the end of the journey. This will encourage return visits and a positive experience.
Smart check outs are expected to be more of the norm going forward. Check out areas are expected to be updated and look like Amazon fresh’s invisible check out, where you can simply walk in and walk out, with your basket tracked and paid for automatically via AI. Ensuring a quick and personalised experience, even a part of the end journey. While this isn’t everywhere just yet, we feel as though it will continue to grow.
Smart Follow-Ups after purchase, shoppers receive AI-powered communications such as restock reminders, personalised deals, care instructions, or tutorials based on what they just bought.
Looking ahead
We have gone over how AI has impacted retail so far, but how will it grow even further?
- Outfit & Meal Planning: Based on purchase history, AI could create entire outfits or weekly meal plans tailored to individual lifestyles.
- Dynamic Store Layouts: Stores may reorganise themselves in real time based on live foot traffic and shopper profiles.
- Hyper-Personalised Experiences: Everything from tutorials to loyalty programs will feel made just for you.
How do you feel about the use of AI in retail?
Contact the team today to get some inspiration for integrating AI and technology into your current shopping experience.