Demand forecasting and inventory optimization were once key AI applications in the retail industry. However, recent advancements in AI have brought forth innovative offerings that are transforming the retail business.
Think Outside the Box!!!
One interesting application involves enhancing product image quality to boost sales conversion rates. Retailers use AI, specifically computer vision techniques, to improve the visual appeal of product images, increasing the chances of a purchase.
By experimenting with different image qualities, retailers can determine which attributes drive conversions, such as high-definition pixels and proper lighting.
Source: Canva
Computer vision techniques enable retailers to automate image quality improvements, ensuring they resonate with customers.
Product Descriptions
E-commerce websites often have inconsistent and incomplete product descriptions due to multiple sellers. Generative AI can help generate effective product descriptions, leading to higher click-through rates and conversion rates.
AI-generated content ensures comprehensive and engaging information, tailored to user preferences over time.
Retailers can refine product descriptions continuously, optimizing them for maximum effectiveness in driving conversions.
Seller Risk Management
E-commerce platforms can use AI-powered systems to monitor seller risks related to product quality, customer service, and ethical standards. By analyzing various factors, AI can identify irregularities and non-compliance.
Identifying and suspending non-compliant sellers proactively helps build trust and confidence among customers.
AI systems continuously learn and adapt to evolving patterns of non-compliance, ensuring reliable seller quality.
Fraud Detection
AI can help retailers detect potential fraud based on buyer history, preventing fraudulent transactions and increasing customer trust and loyalty.
Source: Canva
Mitigating risks of fraud showcases a retailer’s commitment to customer-centricity, enhancing brand loyalty.
Quality Control
AI can assist in quality control by checking product quality before reaching shelves, ensuring consistency and consumer safety.
Automating quality control procedures helps maintain consistent product standards and deliver superior products to customers.
Cognitive Overload
AI can simplify the shopping experience by providing relevant recommendations based on user data and preferences, reducing cognitive load and enhancing customer satisfaction.
Summary
From optimizing product images to managing seller risks and detecting fraud, AI is reshaping the retail industry. With more AI tools becoming available, the era of AI in every industry is here to stay.
Vidhi Chugh is an AI strategist and digital transformation leader, working at the intersection of product, sciences, and engineering. She aims to democratize machine learning and make it accessible to all.
