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Artificial Intelligence in Retail: Enhancing Customer Experience and Profitability
Abstract
This chapter gives an overview of how artificial intelligence is used by the retail sector to enhance customer experience and to improve profitability. It provides information about the role of the pandemic in stimulating AI adoption by retailers. It deliberates on how AI tools help retailers to engage customers online and in stores. Firms gain better understanding of customers, design immersive experiences, and enhance customer lifetime value using cost-effective technology solutions. It discusses popular AI algorithms like recommendation algorithm, association algorithm, classification algorithm, and predictive algorithm. Popular applications in retail include chatbots, visual search, voice search engine optimisation, in-store assistance, and virtual fitting rooms.
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