The Impact of Artificial Intelligence on Customer Service in the Retail Industry

In today’s tech-dominated world, people crave meaningful experiences amidst the convenience of online shopping. The rise of ‘servitisation,’ fueled by AI technology, is reshaping the way we shop. Online companies leverage AI to enhance customer experiences, adapting to the changing landscape. Interestingly, AI’s impact extends beyond digital realms, blurring the line between physical stores and e-commerce.

The emergence of an ‘omnichannel’ environment merges brick-and-mortar stores and online channels, fostering a seamless synergy. This convergence, however, makes the customer journey more complex. To excel in this dynamic landscape, businesses must precisely map out the customer’s path-to-purchase and leverage technological advancements to optimize the customer experience.

AI, in the form of recommender systems and conversational agents, plays a key role in this transformation. Recommender systems provide personalized recommendations, while conversational agents boost customer engagement. Together, they elevate the overall customer journey.

AI-Powered Retail: Elevating Customer Shopping Experiences

AI-powered retail has revolutionized the way businesses interact with customers and enhanced the overall shopping experience. By leveraging the power of artificial intelligence, retailers can analyze vast amounts of data, predict customer preferences, personalize recommendations, and optimize various aspects of the shopping journey. Here are some ways AI is elevating customer shopping experiences:

• Global annual spending on AI by retailers is estimated to reach $7.3 Billion.
• AI will be used by at least 75% of organizations for digital commerce.
• 90% of retail and 85% of consumer products companies plan to be using Intelligent Automation for supply chain planning.
• 89% of retail and consumer products companies expect to be using Intelligent Automation for customer intelligence.
• 15% of all customer service interactions will be handled by AI, and increase of 5500% from 2018.

10 AI-Driven Advancements

• Streamlining supply chain and logistics
• Understanding your customers
• Offering customized Experience
• Lowering out of stock instances and markdowns
• MAP analysis
• Revolutionizing the in-store customer experience
• Detecting non- scans
• Smart product searches
• Behavior analytics and forecasting
• Streamlining store operations

AI in Retail Market (Global market insights)

• Market size (2023) = $6 Billion
• CAGR (2023-2032) = 30%
• Market Size(2032) = $100 Billion
• Computer vision segment market share (2022) = 15%
• Solution segment CAGR (2023-2032) = 30%
• Programmatic advertising segment market value (2032) = $25 Billion
• Market growth rate (2021-2030) = 41%
• NLP technology share (2021) = 65%
• Learner model market share ( 2023) = 75%
• The year-over-year growth rate for 2023 is estimate = 51.55%