Retailers Look to AI for Holiday Shopping Season Success

Shoppable video is gaining momentum as a powerful tool in retail media, especially as consumers increasingly expect seamless and engaging experiences. Platforms like TikTok, YouTube, and Instagram have pioneered this approach, allowing consumers to purchase products directly from video content. In 2025, we can expect even more brands to invest in shoppable video content on retail media networks. For example, brands may leverage interactive, live-streamed shopping events hosted directly on retailer platforms, creating a dynamic and immersive path to purchase. Market research firm IDC reports that the retail sector ranks second among all industries globally in its spending on AI technologies.

AI-driven skincare analysis tools provide personalized product recommendations based on skin type and skin concerns. We offer tactical and strategic support, which enables our esteemed clients to make well-informed business decisions and chart out future plans and attain success every single time. Besides analysis and scenarios, we provide insights into global, regional, and country-level information and data, to ensure nothing remains hidden in any target market. Our team of tried and tested individuals continues to break barriers in the field of market research as we forge forward with a new and ever-expanding focus on emerging markets. Retail media is becoming one of the most profitable revenue streams for retailers, many of which partner with ad tech companies to implement their ad campaigns rather than developing the technology in-house. And some experts believe that conversations on the ground at this year’s event indicate that the industry is already seeing a shift toward less flashy and more substantive applications of the technology.

It transcends physical boundaries and provides a space where users can interact, socialize, work and play. Keep an eye on convenience stores for design innovation and merchandise reengineering. Another concern that bubbles up is that artificial intelligence will displace humans.

Many retailers are leveraging innovations like AI to improve the way they communicate with their customers and understand their preferences. Sustainability, convenience, and memorable experiences are now some of the most important factors for shoppers. In addition, the efficacy of AI systems is contingent upon the quality of the data they rely on. Therefore, cultivating a robust data infrastructure with transparent decision-making becomes paramount. In essence, if you lack sufficient data or the ability to comprehend and scrutinize the model’s decision, your AI initiative becomes futile.

3D product demonstrations and visualizations created through AR make the buying experience more interactive and informative. Costco has established a strong omnichannel presence with its easy-to-navigate ecommerce platform, integrated membership benefits, and click-and-collect service. Its app offers exclusive deals, warehouse information, and shopping list management for online and in-store shopping.

In the ever-evolving landscape of technology, Collaborative Robots (Cobots) have emerged as a transformative innovation with no signs of decline in the near future. With millions of robots already deployed in factories worldwide, CoBot applications are here to stay forever. Working alongside human workers to enhance productivity, safety, and efficiency across industries.

AI in Retail/ eCommerce

Explore the health of American consumers and the retail industry at NRF’s State of Retail & the Consumer 2024 event taking place March 20, 2024. From colleagues at work, to my own grandmother and my one-year-old son (now, that’s a stretch), there’s a universal desire to delve deeper into the realm of AI. According to a recent study, grocers plan to increase their AI spending by 400% before 2025. The same study found 73% of grocery tech executives expect AI to be embedded into most or all of their software capabilities by 2025. A forum for contributed pieces from industry thought leaders, retailers, wholesalers and manufacturers. Brands need to consider paid search advertising on both search engines and retailer websites, especially because the searches on those retailer websites tend to be from people with intent to purchase.

In addition, having more than one ESG claim on the label resulted in 2x greater growth than products with just one ESG claim. Beyond privacy, some consumers think personalization has simply gone too far—46% think it’s “creepy” when they see promotions related to a website or app they’ve visited within the past two minutes. Search interest in “data privacy tools” has increased more than 5,000% in recent years. McKinsey reports that personalization can cut customer acquisition costs in half and boost revenue by as much as 15%.

YouCOMM allows patients to interact with nurses in real-time via voice commands and manual alternatives like head movements. For instance, according to recent news by Aol, Zapata and D-Wave have partnered to advance the integration of quantum AI. This collaboration aims to accelerate the development and deployment of integrated quantum and generative AI solutions on D-Wave’s Leap cloud platform. This presents both chances for quick development and problems related to security and compliance.

Integrating AI with existing ecommerce platforms can be challenging due to compatibility issues. Seamlessly integrating AI systems often requires a robust data infrastructure and may demand significant overhauls to existing systems. Obtaining valid customer consent for data usage is often challenging, as long and complex privacy policies can deter customers from fully engaging. Ensuring data security is paramount to prevent unauthorized access, breaches, and manipulation of personal customer data. In ecommerce, security is of utmost concern, and AI offers sturdy tools for fraud detection and prevention.

This problem often results from a lack of data integration, as data is often not integrated within a physical store—i.e., products may not be available on the shelf although there is sufficient inventory in the storeroom. End-to-end supply chain integration can solve many of these problems and enhance brands’ images through better in-shelf availability. If you’re still thinking of social media as just a marketing channel, you’re missing the bigger picture. In 2025, platforms like TikTok Shop and Instagram Shopping aren’t just part of the retail landscape – they’re reshaping it.

The Future 100: 2024

But for consumers who either don’t want to use a credit card or have reached their credit limit, buy now pay later (BNPL) options are a must-have checkout option. The luxury goods market proved to be resilient during the pandemic, but experts say this may be the year it slams back to reality. Their products are made from a blend of organic cotton and several types of recycled materials like water bottles, fishing nets, and fabric scraps. The lineup features clothing made with 74% regeneratively grown cotton and 26% post-consumer recycled fibers. Companies like Patagonia are long-standing champions of sustainable fashion, but a few other notable brands have joined them in the past year. However, many brands are forgoing more serious actions like holding senior leaders accountable for sustainability goals.

While challenges such as data privacy and AI bias exist, the benefits of improved customer experience, operational efficiency, and increased security make AI an invaluable tool for ecommerce businesses. As we look to the future, the continuous evolution of AI technologies promises even greater innovations and opportunities. Embracing AI today will set the stage for a more competitive and efficient ecommerce landscape tomorrow. AI-driven robots, like those used by Walmart, have the capability to scan shelves. They can also create product descriptions for the inventories of online stores. This not only speeds up the content creation process but also ensures that product descriptions are optimized for search engines, making it easier for customers to find what they’re looking for.

Shoptalk 2024 appropriately focused on AI, bringing together both thinkers and doers, while still keeping the discussion grounded with ample discussion of how the technology’s present and future stack up against the current level of hype. Also, in Merchant Center there is this generative AI-powered insight summaries at the top of the analytics tab. We saw this with Google Ads AI summaries before, but now with Merchant Center, these will show summaries of recent product performance. These show popular shopping queries, ranked by popularity and organized by topic and product. Of course, the actual benefits are as dependent on the technology implementation as on its capabilities, requiring leaders to thoughtfully and intentionally integrate this technology into their existing workflows and capabilities.

Unlocking the Future: 15 Retail Trends to Watch

While the initial capabilities of GenAI were—and remain—astounding, reality is now setting in, and companies are realizing how challenging the technology is to manage. Still, it is important to note that the technology remains in its early stages, and even more astounding capabilities are yet to come, particularly around multimodal models leveraging text, images and video. Modernizing complicated supply chain and order management systems with the latest AI and ML capabilities should be done carefully and intentionally. However, several models can transform the way retail manages its inventory, allowing them to elevate promising and inventory management.

Retailers are increasingly using AI to understand customer preferences better, manage inventory more efficiently, and enhance the overall shopping experience. AI technologies like machine learning and data analytics are pivotal in helping retailers forecast trends, optimize pricing, and improve customer service through chatbots and personalized recommendations. You can foun additiona information about ai customer service and artificial intelligence and NLP. Voice-enabled shopping has seen tremendous growth, with its market value skyrocketing from $2 billion in 2017 to $40 billion in 2022.

Thanks to targeted interventions suggested by causal AI, a major global retailer focused on delivering personalized offers and rewards that resulted in a 25% increase in active members, a 30% drop in churn, and a 20% increase in ROI. Another key differentiator is that traditional AI feeds on historical data, assuming that the past will repeat itself sooner or later. However, retail environments change rapidly, and established trends break down and reconfigure. The result is that traditional AI, relying on established models, often fails to deliver the insights retailers expect. By contrast, causal AI relies heavily on counterfactual analysis, which is superior in almost every way to analyze past customer behavior to predict future behavior. The company is experimenting with technology that allows shoppers to connect physical and virtual shopping experiences in the metaverse.

It is imperative for retailers to be proactive in their internal governance of AI and ensure they are using these technologies in ways that support their core values, mission statements and business objectives. The bullish spending retailers experienced during the holidays between Thanksgiving and Cyber Monday suggests that consumers’ commitment to gift-giving, despite inflationary pressure, is undeniable. Prognosticators could use OpenAI to determine how shoppers intend to shift their spending, which categories are a sure winner and whether adding square footage is a wise move.

Regional SKU Inventory Optimization

It’s in the dressing room that shoppers are converted into customers, often outside the purview of any staff that might be able to help or upsell. Interactive projections with 10k+ metrics on market trends, & consumer behavior. This system has improved patient-staff communication efficiency and record-keeping, leading to adoption by over five US hospital chains and a 60% increase in nurses’ real-time response rates. For example, AI-driven systems in smart cities are able to instantly evaluate enormous volumes of data from cameras and sensors positioned all around the city, allowing for effective energy management, public safety, and traffic control.

One of the primary retail trends is Click & Collect, which allows customers to purchase products online and pick them up in-store. It offers speed, convenience, and low cost, all of which shoppers greatly appreciate. Ultimately, this year may witness changes in the social media landscape, store sizes, legislation on retail crime, job market dynamics, and the influence of healthcare trends on consumer behaviour. Retailers such as Reformation and Zara are adopting tech-driven approaches, allowing shoppers to interact with products digitally and personalise their shopping experiences.

Experts are not entirely onboard, noting that reassigning tasks that are repetitive and primed to be replaced by AI will allow humans to embrace more creative opportunities. Here are some predictions about what could be in store for retailers over the next 12 months. More than 200 million people shopped online and in stores, according to NRF, spending an average of $321.41 on holiday-related purchases during the 5-day holiday weekend. When the data set comprises global policies, cultural swings, demographic shifts and various industries, a human touch is needed.

With a proven track record of delivering cutting-edge AI development services in Australia, USA and other regions for various sectors, we help businesses witness transformative changes and reach greater heights. Partner with us to unleash the full potential of important AI trends and turn your vision into reality. With such incredible features and important AI trends at their disposal, businesses worldwide will find innovative ways to integrate artificial intelligence into something new and set an unparalleled example of supremacy. Now that we know the current trends in artificial intelligence, it is time to explore the multifarious use cases of artificial intelligence across industries.

Shoptalk 2024 Wrap-Up: AI “Hype” and Back to Retail Basics—Loyalty, Physical Stores and More

Retailers will continue to invest in artificial intelligence and machine learning to seek efficiency and adaptability. Companies will further leverage the benefits of using ML in sales funnel optimization, putting an ever greater emphasis on its serviceability in supply chain management. For example, Target has successfully implemented an AI-driven inventory management ChatGPT App system known as the Inventory Ledger. This system uses advanced machine learning models and IoT devices to provide accurate inventory data in real-time across 2,000 stores. Retailers can gauge public sentiment about products or brands through AI analysis of customer reviews and social media posts, informing decisions about product offerings and marketing strategies.

These organizations use AI to manage inventory, enhance loss prevention efforts, analyze store analytics, and provide adaptive pricing. IDC’s data ranks the retail sector as second among all industries when it comes to spending on AI technologies. It’s about a brand that I love and have purchased from for many years recognizing me the minute I click on their site and the second I cross the threshold of a physical store. In this article, you’ll learn the use cases, examples, and steps retailers must follow to implement AI.

Carhartt, famous for their durable jackets, is one of the latest fashion retailers to offer resale options. And, the number of brands offering branded resale platforms grew 3.4x from 2022 to 2023. Financial woes and sustainability concerns are leading retail consumers to shop resale marketplaces more frequently than ever before.

• In conclusion, AI in retail is rapidly evolving, marking a significant transformation in how retailers operate and engage with customers.
• Read about the biggest trends shaping grocery retail in 2024, and discover what grocery industry leaders are doing to stay ahead.
• They’re now saying that real GDP for Q4 increased 3.4%, an upwards revision and reflects, in part, increases in consumer spending.
• In fact, the Zendesk 2024 CX Trends Report shows over 70% of customer experience organizations think that AI will benefit their business by adding a personal touch similar to the warmth and familiarity you get from human service.
• Implementing AI requires substantial investment in technology and skilled personnel, which can be a hurdle for smaller retailers.
• Other offerings tied to physical stores can enhance the experience and improve consumers’ view of a retailer, while simultaneously providing instant benefits to the retailer.

Nextuple is a firm that helps retailers, grocers and distributors elevate their omnichannel Order Management Systems by using a microservices architecture. To be sure, today’s shoppers are complicated and choosy, with shifting preferences that can be difficult for retailers to keep up with. The best brands will tackle this challenge with technology ready to meet the moment. For example, one national wholesale club needed to update its enterprise inventory capabilities because lack of visibility caused issues with canceled orders and missed sales opportunities online. By updating its inventory tech stack to the latest solutions, the company moved inventory reservations into the checkout process, improved node controls with no picks, and eliminated static safety stock calculations. AI and ML models are helping companies convert their expansive data sets into actionable insights and proactive inventory adjustments that enhance holistic brand performance.

Why Black Friday has become an online state of mind

And brand exclusions can now be customized at the format-level to exclude branded queries specifically for either Search or Shopping ads within Performance Max for more granular control. Google Ads announced a number of updates yesterday, across new reporting, shopping tools and more ad features, including, of course, AI ad features. “To help retailers maximize success and stay nimble in this year’s shorter holiday shopping season, today at our annual Think Retail event we shared some new updates to Google tools,” Google wrote.

Lastly, collaborating with AI experts guarantees a smoother integration of AI technologies, since these specialists possess the requisite knowledge and experience to steer through the complex landscape of AI implementation. Choosing the right AI partner with relevant expertise and a proven track record can accelerate innovation and provide a competitive advantage. Moreover, AI-powered chatbots are transforming customer service by offering round-the-clock support and automating mundane tasks. Placer.ai joins Retail Brew to uncover the latest location analytics to examine retail visit performance ahead of the 2024 holiday season. Placer.ai will explore the top consumer trends that shaped visitation throughout the year, uncovering key insights for both discretionary and essential retail sectors. One business application of Gen AI may be customer service chatbots, trained on data and transcripts from previous interactions.

New startups are building AI-driven products to map supply chains and connect previously independent parts of the business, claiming to drive significant efficiency gains for supply chains. Start by evaluating a solution’s integration capabilities and understanding how well this new system will integrate with existing software and tools. Seamless integration can keep data flowing across all systems, while less-compatible solutions can create information silos that limit the impact of your inventory management ChatGPT strategies. In this journey, Appinventiv stands by you as a trusted artificial intelligence services partner, helping you navigate the intricacies of AI industry trends effectively and gain sustainable growth in today’s tech-driven era. Artificial intelligence and augmented reality are two powerful technologies that have redefined how we interact with the world. When combined, they can create more interactive and immersive experiences that nearly blur the line between the physical and virtual worlds.

• And, as the lines between physical and virtual continue to blur, that includes virtual worlds.
• Fashion retailers, especially those considered fast-fashion retailers, have been heavily criticized for their emissions and the situation is predicted to get worse.
• However, several models can transform the way retail manages its inventory, allowing them to elevate promising and inventory management.
• With AI at the forefront, the future of retail looks to be more connected, efficient, and customer-centric.
• In addition, the updated tech solution came with robust reporting, alerting, and reconciliation capabilities related to inventory data, which will shorten root cause analysis cycles.

Imagine spending an hour researching products on Apple and then receiving a personalized recommendation in the store based on that browsing history. While Gen A doesn’t have disposable income yet, they do have plenty of influence on shopping decisions and loads of opinions about shopping. While it’s easy to assume their comfort with technology would make them partial to online shopping, research finds they like the experience of going to a retail store. When finding information online, search engines rank No. 1 among all generations worldwide, per August 2023 data from GWI.

For example, chatbots utilize natural language processing (NLP) to understand and interpret customer inquiries, requests, and complaints. Chatbots can often handle routine interactions without involving humans because they’re available 24/7 and equipped with a database of predefined responses to frequently asked questions (FAQs). These technologies also lower the risk of workplace injuries related to manual labor, such as heavy lifting and repetitive motion. ai in retail trends For brands and retailers, staying ahead of these trends will be essential in delivering relevant, engaging, and value-driven experiences that meet the evolving expectations of modern consumers. With AI, agents might also offer insights into up-and-coming trends and products that they think align with the shopper’s tastes. Personalized messaging can be inserted into targeted email campaigns, on websites, or in other customized marketing activities.

Until now, there haven’t been enough data points available at the right time for effective recommendations. With Walmart®, Target, Macy’s, and Nordstrom all mandating RFIDs from suppliers,2 and RFIDs already in use by 93% of retailers,3 the technology is finally reaching the critical mass the apparel industry needs. The best way to leverage top important AI trends is to combine them with emerging technologies and implement the most relevant one in your business. This next-gen marketing tactic will help you realize the power of intelligent automation and unlock a door of massive possibilities. Let’s throw a little light on emerging technologies used with artificial intelligence.

In 2025, we’ll see advancements in attribution models, allowing for a more accurate analysis of the entire shopper journey. “The retailer of the future will leverage retail media, automation and AI to enable margin expansion, and consolidation and share gains will accelerate these drivers,” says Gutman. “Margins could expand by more than 200 basis points for the best-positioned retailers over time from around 9.5% on average today.”