How To Use And Unleash The Power Of Artificial Intelligence

 

Over the last year, a growing number of retailers have started to adopt the technology. Uniqlo, for one, uses machine learning to power a digital assistant on its app, which is able to give tremendously personalised recommendations. In Hong Kong, convenience-store operator Circle K unveiled an AI-driven checkout solution last year that uses image-recognition technology in the self-checkout process.

 

While there are clear benefits to implementing artificial intelligence – improving operational efficiencies and gaining a better understanding of the customer are just two – it can also be a difficult task to embark on. Here we figure out three key considerations for retailers that are looking to unleash the power of AI:

 

Quality of data

 

Through machine learning, retailers are able to take data from a number of channels and turn that into actionable predictions and recommendations. But the biggest success factor is not the algorithm behind these insights, but relatively the quality of the data that feeds into it. Retailers that do not have their data estates in order risk having underwhelming outcomes from their AI investment. This is something that must be regarded beforehand.

 

Choosing which areas to focus on

 

There is a number of areas in which artificial intelligence can be deployed in a retail setting. Except for the different applications of AI technology – as an example, machine learning, natural language processing and robotics – there is also a choice to be made with respect to the operational area, be that the customer-facing side of the business or processes that run behind the scenes. AI initiatives that help to improve the customer experience can be an ideal starting point as this is an area that benefits from a wealth of data and can provide a quick win for a retailer.

 

Bringing in external expertise

 

Numerous retailers will lack the skills and expertise to confidently start leveraging AI technology. The solution is often a mix of recruiting talent to bridge the skills gap and working with credible technology partners. The advantage of both these approaches is that retailers can hit the ground running and be able to accelerate their first move. Speed is critical if a retailer wants to be a disruptor rather than disrupted.

 

Digital Transformation Survey

 

Is your organization looking at emerging technologies such as artificial intelligence, augmented reality and automated deliveries? And how do technology partnerships form part of your digital strategy? Tofugear is executing its annual digital transformation survey and is asking C-level executives and senior managers across Asia about their approach to innovation.

 

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