AI In Retail: Uses of Artificial Intelligence in Retail Business

Artificial Intelligence has made significant changes in various industries. The retail sector is not an exemption. Artificial Intelligence in retail industry has brought tremendous advancements in the industry. It is helping retailers in many ways. But, due to high costs and less ware of this cutting-edge technology, few retailers are not using AI.
In this article, you can find, how artificial intelligence is used in retail industry, what are the applications of AI in retail, and the growth of AI retail market. I hope this article help retail business to know the importance of AI in retail. Let’s have brief conversation on these topics.

What AI Can Do For Retailers?

Nearly every industry is showing interest in AI. They are looking to gain profits from this innovative AI technology. Among others, demand for AI is growing from retailers. The use of artificial intelligence in the retail business allows retailers to offer an improved shopping experience to customers.

Uses of Artificial Intelligence in Retail Business

Modern technology, AI is a benefit to retail businesses. It is primarily useful for those retailers who collect and process enormous customer information. Using machine learning and deep learning techniques, AI apps for retail can provide valuable insights into data and offers personalized customer experiences.
Now, we’ll look at how AI modernize the retail business to offer improved experience.

1. Digital Racks for Apparel & Fashion Products

Using artificial intelligence technology, retail companies are creating virtual trial rooms and virtual shelves to offer a more personalized experience to online customers. With this kind of AI apparel applications, customers can easily find the best and suitable apparel.
AI in retail industry not only improve shopping experience, but this virtual service also helps customers to select suitable products from a pool of fashion and apparel products. In addition, deeper insights using customer behavior are provided, retailers.

2. Quick Decision Making

AI in retail helps customers to make quick decisions in buying products. Because, if you buy apparel in physical retail stores, you may be frustrated in trying different apparel. AI-based virtual trail rooms with digital mirrors improve customer decision making power. These intelligent retail systems not only helps offline buyers but also saves valuable time for online buyers too.
With the help of a touch-based screen, customers can select different options like accessories, shoes, etc. They can easily select the products which look perfect to them. These services are not only for clothing, beauty, and cosmetic brands also using AI. Artificial intelligence helps customers in checking how foundation or lipstick suits them.
USM develops Artificial intelligence retail apps for retail clients. Get a product quote right now.

3. Virtual or Digital Assistants

Technology developments of AI are expanding in the market. Using AI, natural language processing, and analytics, retailers are focusing on providing quick and 24*7 support to its customers. Even physical retail stores are using touch screen panels and robots to help their customers in many ways. Locating products, getting a response for their queries, and product details are a few of the benefits of using AI virtual assistants inside stores.
Thus, AI sales assistants can reduce the costs spent on their employees. This kind of AI apps not only improves retail services but also saves money and attracts new customers to the stores.

4. High Security Backed By AI

The modern and the best AI-powered security equipment are enabling retailers to capture customer acts inside the store. Thus, security levels will be enhanced, and at the same time, the retailers can optimize their service and product offerings.
On the other hand, using video analytics, retailers reduce thefts. Using footages captured by AI-powered security equipment, the retailers can do real-time monitoring. AI apps send security alerts to the admins so that the owners can take instant action.

5. Enhanced Customer Support Using Chatbots

Artificial Intelligence has changed the retail industry. AI-based chatbots allow retailers to engage their customers confidentially and efficiently. Using Chatbot applications, retail brands can process thousands of customer queries simultaneously.
In general, Chatbots are developed to give an immediate response to user queries and suggestions and recommendations in shopping. With the combination of humans and AI chatbots, retail brands can gain from fluctuating market dynamics. This change in the retail industry will also ensure customer-centric services.

6. Robotics In Retail

Robots are driving innovation in the retail industry. Ranging from logistics and supply chain, in-store operations, marketing and sales to back-office operations, and on-store customer assistant services, robots are playing a vital role in retail businesses. Speed and accuracy as the major capabilities, intelligent robots are transforming the distribution center operations.
Robots in retail are still an innovation. Its cleverness is driving the increasing adoption of intelligent robots and will make them abundant in the future.
The best examples of artificial intelligence robots for the retail sector are:

  • LoweBot, a retail service robot helps customers navigate the store
    Location: San Francisco, California
  • Tally Robot, an autonomous robot, keeps track of products list (quantity) on shelves
    Location: San Francisco, California
  • Pepper Robot: It can interact with customers, navigates them, and respond to their queries
    Location: San Francisco, California and Boston, Massachusetts

All the above applications are a few, but AI will completely control the retail industry in the coming years. Is your retail business is ready to adopt the true potential of AI? Get started!
As we discussed in this blog, AI to make tremendous changes in the future. So, with my research, below are the few concepts that make sense in the future of retail stores:

  • No need to wait in a long queue
  • No need to stand for hours for billing
  • The concept of In-store drones will go viral
  • As we discussed, AI-powered virtual in-store assistants
  • The concept of biometric technologies, especially to recognize the face of a customer soon expand in the future
  • Physical retailers will embed more online functionalities to provide an online experience to the customers
  • The concept of brain-computer interface

The Future of Retail With Artificial Intelligence

  • AI is a more promising technology for retailers because of its efficiency. This AI technology avoids manual errors and provides accurate results. According to a study done by Forrester, currently, the best AI applications will replace 70% of jobs globally by 2025.
  • The companies are observing profits with AI. Increased production rate, customer experience and satisfaction, and perfect delivery are few of the benefits of AI in the retail business. As per Tractica, AI retail solutions help to increase industry value to $36.8 billion by 2025.
  • According to the global analysis, Artificial intelligence in the retail market is estimated to be US$ 27.2 billion by 2025. Driven by the changing customer preferences and their shopping patterns are the major key factors for this growth. AI in the retail market by application is segmented into the following categories:
  • Sales and Marketing
  • Supply-chain & Logistics
  • Pricing
  • Customer recommendations or in-store navigation
  • Auto-checkout etc.

The above-given market values are estimated as per the secondary research using some sources. But, the value may even increase with the rising demand for AI in the retail industry. Therefore, a radical shift in the global retail industry with AI is guaranteed. And, we can strongly say that AI is the future technology for the retail industry.
Accordingly, machine learning in retail helps retailers in optimizing price structure, collecting customer information, and making efficient logistic decisions that reduce costs and build long-term relationships with customers. Hence, Artificial intelligence and ML revolutionize the future of retail marketing.


Herein, we can observe how the retail industry is changing with artificial intelligence technology. The retail domains are interested in AI and are looking to harness the power of AI technology to grab business benefits. Uses of artificial intelligence in retail ensures a blushing opportunity for retailers. AI makes retailers a strong competitor in the retail industry.
Now, it’s your turn. Are you a retailer? Redesign your retail store with AI products and services. USM is the best artificial intelligence service provider, based in Chantilly, Virginia, USA. We design and offer intelligence retail solutions and strive to transform your hazy business approaches to completely digital and automated. Hurry up, expand your brand with retail intelligence!

  • Hello,
    Awesome article!! I really enjoy your article.
    AI has received increased attention in recent years. Innovation, made possible through the Internet, has brought AI closer to our everyday lives. I found this blog wonderful because of all the information about what AI can do for retail industry mentioned by you in this article are amazing.
    Thank you for sharing this informative article.

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