Winsight Grocery Business reports that “Artificial intelligence will create $113 billion in operational efficiency and new revenue, and nearly three-quarters of grocery technology executives believe AI will be incorporated into most of their software by 2025, according to a report by data analytics firm Grocery Doppio. The study of new technologies, conducted in partnership with FMI-The Food Industry Association, is based on interviews with 152 grocery executives.”
According to Grocery Doppio’s study “these efforts are projected to generate $113 billion in value, with inventory management savings accounting for more than half at an estimated $58.4 billion.”
Planalytics, through our experience with hundreds of retailers and consumer-based businesses, has seen companies use predictive Weather-Driven Demand (WDD) analytics to capture financial benefits through inventory optimization and better targeted digital marketing. WDD models utilize a combination of proprietary statistical and AI/ML (Machine Learning) techniques to identify localized relationships between weather and sales for specific products, time periods, and channels. Increasingly, retailers are feeding WDDs into AI/ML forecasting solutions.
The opportunity is certainly not limited to supermarkets. In another article – AI in Retail: From Personalized Shopping to Inventory Management – summarizes a few of the key areas where predictive analytics are bringing benefits to retailers.
“Artificial intelligence (AI) is revolutionizing various industries, and retail is no exception. The use of AI in retail has grown exponentially in recent years, and it is expected to continue to expand as more retailers recognize the benefits of incorporating AI into their operations.”
The article highlights personalized shopping, chatbots/virtual assistants, inventory management, pricing, and supply chain as valuable applications for AI.
• “One of the most significant ways AI is impacting retail is through the creation of personalized shopping experiences. Retailers are using AI algorithms to analyze customer data, such as purchase history, browsing behavior, and preferences, to create tailored product recommendations and promotions.” (Learn more about predictive WDD analytics for digital marketing.)
• “AI-powered chatbots and virtual assistants are also playing a significant role in enhancing the customer experience. By offering personalized, real-time assistance, retailers can improve customer engagement and drive sales.”
• “AI is also helping retailers optimize their inventory management processes,” with solutions that can “… analyze vast amounts of data to accurately predict demand, allowing retailers to maintain optimal stock levels and reduce the risk of overstocking or stockouts.” (Learn more about predictive WDD analytics for inventory optimization & replenishment.)
• “AI can also help retailers identify patterns and trends in sales data, enabling them to make more informed decisions about product assortment and pricing.”
• “AI-powered tools can help retailers optimize their supply chain operations by predicting potential disruptions, such as weather events or supplier issues, and recommending alternative suppliers or routes to minimize the impact on the business.”
“From personalized shopping experiences to efficient inventory management, AI is transforming the way retailers conduct business and interact with their customers. As the technology continues to advance and become more accessible, it is likely that we will see even more innovative applications of AI in the retail sector in the coming years.”