Technology has contributed mightily to success in retail in recent years. Retail technologies are key to addressing existing industry challenges and providing a set of opportunities through improving user experiences. This includes both brick-and-mortar stores and online.
In today's blog, we look at some of our top technology predictions for 2018.
The global AI in retail market size is expected to grow from USD 993.6 million in 2017 to USD 5,034.0 million by 2022, at a Compound Annual Growth Rate (CAGR) of 38.3%. The need to offer seamless user-experience to customer and forecast future outcomes to make better strategic decisions is expected to propel AI in retail market growth.
An increasing necessity for superior surveillance and monitoring at physical stores, growing awareness and application of AI in the retail industry, enhanced user-experience, improved productivity, Return on Investment (RoI), mainlining inventory accuracy, and supply chain optimization are some of the key factors fueling the growth of this market.
The emergence of machine learning, deep learning, and Natural Language Processing (NLP) technology are expected to develop the AI-based solution for retail and thus, will create opportunities for the growth of this market. However, issues with diverse development framework, models, mechanism in AI; concern over privacy and identity of the individual; and lack of skilled staff are a few major challenges in AI for the retail market.
The in-store shopping experience can be enhanced through augmented reality applications that provide information at the users’ fingertips. For instance, American Apparel offers an app that shoppers can use by pointing their phone’s camera at a piece of clothing. The app would show the same clothes on screen in different colors, accompanied by user reviews and additional product details. It would also know and display whether the shopper’s preferred color and size is in stock. Finally, the app can offer shoppers the option to buy the merchandise online if the item is out of stock. These in-store shopping aide applications will help retailers create a more convenient shopping experience for their customers, resulting in higher conversion rates from shopping to buying.
The global augmented reality market is anticipated to grow at a significant growth rate during the forecast period. The major factors that are augmenting the growth of the market include technological advancement, increasing adoption of augmented reality technology in healthcare and automotive industries and growing advertisements through AR technology.
The global chatbot market is expected to grow with a CAGR of approximately 35.8% during the forecast period. The global chatbot market is primarily driven by major factors such as increasing social media marketing activities, increasing demand for cloud-based technology, advancements in artificial intelligence technology and applications across various end-user industries such as BFSI, retail and healthcare.
For customer service, chatbots can be programmed with responses to frequently asked questions, providing front-line support for simple queries and the ability to hand customers on to a real customer service representative.
Chatbots can effectively create a new way of communicating with customers via notifying them, automated ordering, and customer support desk functionality and so on. The Chatbots are creating their presence on Google, Facebook and Skype, working as robotic customer service representatives. The rich API allows them to efficiently process messages and to respond with images via Chatbots, connections, call-to-action buttons as well as direct payments.
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