If there was one trendy word that influenced the retail and food sector more than any other last year, it was AI or artificial intelligence.

Influencing Decisions

Far from being a passing fancy, the adoption of AI-based solutions, especially generative AI, is expected to accelerate in the retail and consumer landscape in 2024, notes European Supermarket Magazine.

In November 2023, a report from Euromonitor International found that new generative artificial intelligence platforms are influencing consumer decisions and reshaping their expectations when it comes to brand engagement, and these platforms will become increasingly integrated into consumers' daily lives.

On the other hand, a study by Capgemini, published earlier this year, found that one-fifth of consumers have already used generative AI tools for shopping, with 72% aware of the technology's use in shopping experiences.

Computer Vision

Among the growing sum of AI-based applications, computer vision uses technology to interpret visual information in a manner similar to humans, analyzing images and videos to draw conclusions from data.

This has obvious applications in the retail environment, where computer vision can be implemented to detect and recognize products, helping with stock management, stock-out detection, store layout optimization, and replenishment automation.

Heatmaps, which provide information about customer behavior by visualizing pedestrian traffic and activity in stores, represent a computer vision application currently used in the retail environment.

Using heatmaps, retailers can manage store functionality, experiment with marketing strategies, improve aesthetics, and better understand their customers' shopping habits.

Another application of computer vision in retail is product recognition. Computer vision analyzes the placement and availability of products on store shelves. This helps monitor compliance with planograms and avoid stock-out situations.

In Europe, the Goods Checker solution is widely used. Goods Checker compares shelf photos with planograms, identifies incorrectly placed or missing items, and generates detailed analytical reports for managers.

Such IT solutions help make informed decisions, providing real-time information about shelf conditions, increasing the speed and accuracy of store audits.

Elsewhere, many retailers have sought to implement augmented reality solutions in their stores - another efficient application of computer vision technology. By allowing shoppers to scan products with an app, retailers can provide real-time inventory information, offer personalized recommendations, and bridge the gap between online and offline shopping experiences.

This also presents an opportunity for retailers to deliver targeted and personalized messages to consumers at the moment they choose to make a purchase - maximizing potential sales opportunities.

Inventory Management

By analyzing pedestrian traffic and customer interactions in-store, retailers can use computer vision to better optimize promotions, improve service engagement, and provide personalized marketing campaigns, boosting sales and increasing customer satisfaction.

This, in turn, can help retailers better manage inventory - especially useful for those looking to create greater efficiency in their supply chains. Computer vision can be used to provide real-time updates on product availability and optimize stock levels. By automating stock counts and minimizing stock-out situations, retailers can provide seamless omnichannel experiences and maximize revenue.

In addition to helping with shelf restocking and managing planograms, this capability can also allow store staff to work more efficiently, enabling them to prioritize important tasks such as providing exceptional customer service.

Moreover, computer vision can be used to mitigate shrinkage and theft, by detecting suspicious behavior and monitoring checkout areas to identify irregularities. In this way, retailers can minimize losses and maintain a safe shopping environment for customers.

A Dynamic Future Awaits

As things stand, there is no way to predict the level at which AI and computer vision will change the retail and consumer landscape, however, next year should see the adoption accelerate as the cost of associated technologies becomes more affordable.

Technology has become more accessible. Its implementation is straightforward, as many companies offer subscription-based solutions, such as Goods Checker. This means you only pay when you use the application. Such an approach allows you to test the product in practice and determine if it fits your company and meets your goals.

"Testing new technologies is essential. They help improve process efficiency, identify bottlenecks, and provide customers or buyers with new and interesting features that become available only through automation," shared Alex Sutsko, Development Manager, Goods Checker IT Solution, at IBA Group.

By harnessing the power of real-time imagery, artificial intelligence, and machine learning, retailers can optimize operations, improve customer experiences, and drive sustainable growth.

Embracing these transformative technologies is, therefore, not just a competitive advantage but a necessity for success in the evolving retail landscape. (Photo: Freepik)