How Retailers are Using AI to Win
Panelists at ICSC RECon 2019 say that retail spending on AI is projected to grow from $2 billion last year to $7.3 billion by 2022.
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Retailer spending on AI is projected to grow from $2 billion last year to $7.3 billion by 2022. So say panelists at ICSC RECon 2019.
According to moderator Deborah Weinswig, founder and CEO of Coresight Research, the retail industry spent the most on AI in 2018 (as compared to other property sectors like healthcare, for example), according to their research. “China’s retailers are using data to drive spectacular retail,” she explained.
AI is all about personalization, she said. “As a future role of AI in retail, communication, optimization, and rationalized inventory are key,” she added.
We also heard all about AI news from the JLL breakfast presentation earlier in the day, where Ed Lahood, CEO of Thyng, said that augmented realty allows the consumer to maintain their view of the real world, while, on top of that, allowing them to see other things.
His company an easy to use augmented realty authoring app that brings the world around you to life by allowing you to create your own augmented reality experiences on any surface. For example, the company worked with the Chicago Bulls and AT&T and wanted to give Bulls fans a fun and unique opportunity to create fantastic social media posts at their social media night. Partnering with Thyng, fans who attended the game could get a photo realistic 3D avatar created and then receive an incredible video of themselves dunking from the free throw line in the United Center, complete with AT&T branding. The videos gave fans an unforgettable memento of their time at the Bulls game, while also promoting AT&T.
“You can look at a cereal box and then it can tell you a story and drive engagement incentive,” he explained. “And it can show you nutritional value, give you a coupon, and once you get home with it, the experience will change and it can show you recipes and give you a reorder option as well.”
According to Lahood, AI moves beyond just showing marketing information or driving sales. “You can use technology to not only drive sale. There are new devices coming out showing computer graphics over the real world. You will be able to walk into a store and have a virtual experience. It will drive purchase decisions in a way that is more efficient for you than ever before.”
GlobeSt.com also chatted about technology with Mark Bolour of Bolour Associates, who said that retailers are making big moves to develop their brand. “Customer loyalty has changed from purely transactional to more personal. As a result, retailers are looking to change their consumer loyalty programs to a more personalized experience rather than purely transactional.”
Emerging technology will be key, he tells GlobeSt.com. “Retailers are consistently mining the data they collect, transform their operations to deliver on the brand promise, and adapt to the future of work.”
Lastly, Laura Sagues, CBRE SVP, based in San Francisco, tells GlobeSt.com that digitally native brands continue to be among the most aggressive in terms of expansion. “Those that have both great brands and products are of particular interest. We are also seeing more innovation around service uses – digitally native and otherwise – which we expect to continue. The intersection of retail and technology is allowing some brands to be more competitive through use of data and analytics, connecting supply chain with retail operations and shifting toward customization.”
Keep checking back for more in the coming week for wall-to-wall coverage surrounding the Las Vegas ICSC RECon show and overall trends in the retail market. Take a look below at stories you might have missed.