Artificial intelligence (AI) is directly correlated with Data Science, which is aimed at extracting business value from an array of information. This value can consist of expanding the capabilities of forecasting, knowledge of regularities, informed decision-making, cost reduction, etc. In other words, artificial intelligence operates with massive arrays of information, analyzes incoming data, and develops adaptive solutions based on them.
In the modern world, the retail industry is rapidly increasing the application of artificial intelligence in all possible work processes. Thus, leveraging opportunities by applying analytics can undoubtedly improve a wide range of operations in the grocery industry. With AI, the largest supermarket chains are achieving very ambitious aims:
The AI solution ecosystem is extensive and able to satisfy most needs of all grocery retailers (from large chains to the smallest businesses). As of now – during the quarantine, online grocery analytics has become a real “savior” in terms of managing stock-out conditions. With intelligent data-driven approaches, supermarkets can process a large amount of information, accurately forecast consumer demand and supply inventory, and generate the most accurate pricing and purchasing recommendations. As a result, grocery retailers will not only stay afloat, but will continue to generate profits even throughout the most critical situations, like during the coronavirus pandemic. With that being said, it is evident that all companies now require animmediate action planin response to COVID-19.
As a rule, most grocery stores have a continuous video surveillance system. Previously, such systems were installed only for security purposes: controlling the safety of products and preventing theft. But now, artificial intelligence video analysis is able to monitor the behavior of customers from the moment they enter the store until payment. How does it work, and why do stores need it?
Large grocery chains like Amazon and Walmart use high-tech cameras that utilize automatic object identification (RFID). Typically, such a system is used in unmanned electric vehicles to monitor passenger behavior and process visual information via a computer. But the primary goal of video grocery store analytics is to determine which items are in high demand, which products buyers most often return to the shelves, etc. Moreover, cameras recognize faces, determine heights, weights, ages, and other physical characteristics of customers. Subsequently, the AI (based on all the obtained data) identifies the most popular products from specific consumer groups and offers options for changing the pricing policy. A computer automates all these processes without human intervention.
Artificial intelligence in the retail industry is capable of solving problems that people cannot cope with.
