Machine learning refers to a data analysis method that computerises analytical model development and is an essential sub-section of artificial intelligence that empowers computers to learn on their own without being precisely programmed.
Unlike old-style programming where engineers tell computers what to do, in artificial intelligence, engineers teach computers what to do, just like training a dog or teaching a child. When exposed to new raw facts, these computer programs discover, change, and also develop to come up with more accurate decisions.
Machine learning relies on a constant scientific learning process that allows machines to continually support new, advanced models derived from data acquired and examined over a period on particular subjects. It can learn and generate actionable information about a business, its customers, and inventory, which is not typically evident to a retailer.
Artificial intelligence models for retailers
There are many ways in which artificial intelligence models are helping retailers worldwide. The following are some of them.
Sales strategies and Machine Learning
With artificial intelligence, retailers can make accurate and more intelligent forecasting. Artificial intelligence models can use the gathered data to develop more accurate illustrations of product types, colours, and qualities that are more likely to sell within a specified period.
The technology evaluates various real-time scenarios including weather, fashion trends, customer behaviour and other parameters that retailers can utilise to ascertain what anticipate in future. AI is a significant move from the previous setup where retailers would come up with blind predictions using past sales data and intuition.
Nevertheless, most of these predictions might entirely focus on the product to stock quantities, but AI systems use previous sales information to know the sales strategies that will work best at any given time.
AI enables shoppers to search for various products over the internet using images. Most of the high-end enterprises have experimented with image processing capabilities to allow consumers to locate products in their stores by just uploading similar photos.
All you need to do is take photos of your products with your smartphone camera and using Google, upload them to the internet. The technology will recognise the images and look for the products online along with the details you want to know.
The other way through which companies can enhance customer experience and increase sales is by assessing their in-store behaviour or shopping habits.
While sales associates might be limited to their interpretations and observation, AI technology supported by CCTV systems can be taught to identify intricate trends in multifaceted retail scenes and develop a proper relation between product arrangements and shopper behaviour in retail shops.
With artificial intelligence, these systems can evaluate trends and relate multiple product layouts with purchases, then make recommendations on how to arrange the stores to boost shopper experiences and increase sales. Better product arrangements can enhance how customers interact with products, as well as effectively market and cross-sell other related products.
Dynamic supply chains
For every business to succeed, it should have a well-managed supply chain. Artificial intelligence is helping to enhance the performance and accuracy of dynamic supply chains management.
The AI systems drive efficiency by automating manual, transactional and repetitive jobs within planning leading to better decisions and reduction of human errors.