8 Use Cases Of AI In The Retail Industry

Hello friends how are you all? Today we are going to talk about the 8 Use Cases Of AI In The Retail Industry. It is an undeniable fact that Artificial Intelligence and machine learning will stay for good. These technologies are being embraced by many industries, especially the retail industry. 

8 Use Cases Of AI In The Retail Industry

Did you know? The global market for AI in retail has a value of close to $994 million. It is likely to go beyond $7 billion by 2022. 

Machine learning and AI in the retail industry offer a plethora of benefits. These include:  

  • Better productivity
  • Cost savings
  • Increased revenue
  • Improvement in problem resolution
  • Loads of data for better decision making
  • Learning and advancing opportunities for employees
  • Faster deliveries
  • Customer insights and personal interaction
  • Innovation

So, if you’re an entrepreneur wanting to expand your reach, improve your branding, and increase your revenue, this post is worth reading.

Use Of AI In The Retail Industry

Wondering where you’ve seen retail-related AI implementations? Here are some live examples of AI implementations in the retail industry:

Resolving Overstocking and “Out-of-stock” Issues

Stocking more products or going out of stock are the two major issues. Retailers worldwide suffer $1.1 trillion every year because of inventory distortion. However, machine learning operations (ML Ops) in the retail industry can help you address these issues. 

Based on the following, AI tools can help you evaluate the demand for a particular product so that you can replenish your supplies.

  • Market location
  • Sales history
  • Fashion and trend
  • Promotions
  • Natural factors

AI helps reduce the workload of going through the stocks. It also helps retailers in stocking up only the products that are in demand. Automated inventory management reduces returns and helps businesses save money


Hiring a customer service team to answer the basic questions of customers can be a bit expensive for businesses. You could use an AI tool that sends autoresponders to customers on time. Known as chatbots, it is another implementation of AI that helps upgrade the retail industry. 

Chatbots make targeting the demands and queries of the customers a lot easier than the conventional method. In addition, they provide active customer support. Chatbots notify them about new deals and discounts to keep customer engagement. 

Since the rise of 24/7 digitization, chatbots have been a huge part of the retail sector’s customer care department. 

This advancement has lowered the demand for virtual agents as 40% of the people prefer interacting with Chatbots to get answers for their queries. 

Price Adjustment

AI can provide businesses with real-time price adjustments. It collects the data from different sources like competitors’ products, sales, and deals to give you the best pricing strategies. 

You can use the prices that suit your business the best without extra research. Why? Because AI uses complex algorithms to automate the whole research process. 

Artificial Intelligence can perform the task of data collection and assessment more efficiently than conventional engineering solutions. 

Mass retailers can utilize AI to send the best offers to their customers. They can create alluring offers by using the data collected and processed by AI. The AI curates and sends data based on customers’ spending history. 

Product Categorization

Since most shopping has shifted to online platforms, it is important to have an organized interface that your customers can navigate through. Most online businesses use AI to automatically tag products and sort them into different categories. 

It helps the customers find their desired product by typing a few keywords in the search bar or using filters. It helps the customers have an easy experience with more chances of returning. 

With the advancement of machine learning, you can even categorize products like merchandise by image recognition. Since these tasks are done automatically by a machine, there are fewer chances of errors and delays. 

In-Store Support

Retailers also use AI to increase customer support in their physical stores. The advanced systems use AI to let the store staff be aware of product details, in-stock items, and different promotions. 

Some stores also install feedback machines to take the feedback of their customers and curate different strategies using that data. The purpose is to upgrade the customer experience in the store, which eventually results in a sales boost. 

Voice Search For Products

The current world revolves around Siri and Alexa, which is why many retailers have opted for a voice search option. As a result, customers no longer have to type on small devices to search for their desired products. 

All they have to do is use their voice to command their devices/apps to add a certain product to the cart. AI will use voice recognition technology to fulfill that command to make your shopping experience almost hands-free. 

Customers can also inquire about the delivery timing and shipment status using smart speech recognition technology. Retailers provide such facilities for a smooth and seamless experience. 

Visual Search For Products

Customers are often looking for something they don’t know the name or brand of. Image search is an effective way to deal with this issue. Retailers use AI to give their customers the option of an image-based search for a quick shopping experience

Customers can upload an image of the desired product, and the AI will filter down all the similar-looking options. 

Companies like American Eagle Outfitters have taken this technology up a notch. They provide similar-looking search results and different options of what goes well with the said piece of clothing item. 

Virtual Mirrors And Trial Rooms

Virtual mirrors and trial rooms have saved customers the hassle of trying on several pieces of clothes to check what suits their bodies. Retailers have ventured into a futuristic trial room design that allows you to check out different outfits on your body without having to try them in person. 

Customers can see themselves in their desired outfit to quickly decide what they want and proceed to the checkout. Several retailers provide this option in their apps, so you can try out different outfits from the comfort of your home. 


Though it still may sound like futuristic science fiction to some, the truth is that AI is now the way of the world. From a boost in productivity to commendable accuracy in data management, there is not a field one can think of in which AI is not beneficial. 

So, if you have plans for boosting your business growth in the coming years, get along with AI to provide the best customer experience.


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