The Microsoft digital transformation shares what AI is doing to innovate in-house operations. In fact, almost 80% of retailers are planning to deploy AI in 2021.
- What is AI?
- How can AI change the way retailers deliver better services in stores?
- What are the ways that AI changes the way in-store operations operate?
What Is AI?
AI or artificial intelligence– this refers to the ability of computer robots to process tasks that are commonly done by intelligent beings.
What are these tasks usually concerned with?
Usually, these are tasks or processes that involve “reasoning, the discovery of meaning, generalization, and even learning from past experiences”.
So these are tasks that humans are capable of. But because of today’s technological advancements, robots can do the same too. In fact, robots can operate more efficiently with tasks on the program. Thus deliver more accurate results in a short span of time, or even real-time.
How Can AI Change The Way Retailers Deliver Better Services In Stores?
Now, concerning retail stores, how can AI be deployed to deliver better in-store operations?
The Microsoft digital transformation states how this can be done.
For example, AI can deliver better customer services while minimizing operational costs.
That is by means of deploying artificial intelligence (AI) into its operations.
In addition, AI can also be used in the cloud. Processing big volumes of data, for instance. This mostly beneficial in delivering web product recommendations. Not to mention boosting the demand forecasting.
Not only that, but AI can also be used in running AI algorithms. This results in a better analysis of data. Moreover, better analytics will then result in better data-driven decisions.
This is the reason why as considered at the outset, almost 80% of retailers are now considering AI in 2021.
According to Microsoft, there are ways in which AI is changing the way retailers deliver in-house operations. Also, these ways are what Neal Analytics, Consumption Information Real Time (CIRT), and Ombori are using AI in innovating in-store operations.
Microsoft Digital Transformation: How AI Transforms In-Store Operations
Below are ways in which AI is transforming the retail market today.
Ensuring Product Availability On Shelves
Product availability is crucial. It can either lead customers to have recurring purchases in-store or not. So if they constantly find your store empty, and have unavailable items, they will likely turn to other stores around.
Neal Analytics makes use of a solution called StockView. StockView works as an HD video stream from IP cameras.
These cameras can detect empty shelves in real-time. Then it can send alerts to employees that some shelf sections are empty. Moreover, it can also analyze stockout trends. So it can better help the inventory planning in stores.
Lessening In-Store Equipment Costs
Ai through machine learning can also help predictive maintenance programs. More specifically in retail equipment. By doing so, it can lessen expenses while improving efficiency.
For example, the CIRT, a Microsoft Strategic Partner, discovered a method to monitor equipment by connecting it to the cloud. It monitored more than 10,000 coolers in restaurants, taverns, and bars all around South Africa in 2020.
It then connects each cooler on the Azure cloud. As a result, tracking is boosted. Through SAB enabling, it also reduces the number of lost coolers each year by up to 10%.