The image has a credit in it.
You may not notice when you use artificial intelligence, but it is integrated into our day to day lives. The retail sector has changed due to the rise in Artificial Intelligence. The exciting transformation of retail is taking place in the form of Experiential retail, where you can immerse yourself in the experience of shopping. The way we shop is being changed by artificial intelligence.
Amazon recorded over 5 billion direct visits in April of 2023, making them the leading online marketplace with a massive market share. Both retailers use predictive analytics to help personalize the customer experience, analyse previous purchases, popularity and user search patterns to sift through millions of products available on their marketplaces. Amazon uses usage pattern analysis to predict when regular shoppers will need to replenish their household necessities, such as diapers, laundry detergent or their morning coffee, giving the user a reminder when it is time to stock up. The Sephora app personalizes the experience by suggesting products within the shopper's expected budget, delivering a better overall user experience and a higher conversion rate.
Virtual reality fitting rooms are one of the exciting changes we are seeing. This form of blended reality allows shoppers to try on clothing, shoes and cosmetics in their living rooms with the help of augmented reality and artificial intelligence. The global virtual fitting room market is predicted to grow from $4.03 billion in 2022 to $14.87 billion in 2029, thanks in part to Walmart and Macy's.
If you like something but aren't sure about the brand, ASOS's Style Match feature can help you find similar items to buy. The tool uses machine learning and artificial intelligence to analyse the image and offer suggestions based on shapes, colors and patterns.
eBay was one of the first retailers to gamify retail, with its virtual bidding system adding a new level of thrill to the shopping experience. Gamification of shopping has evolved into interactive experiences and retail that can keep users on the site for longer. According to Boston Retail Partners, 87 percent of retailers plan to implement Gamification within the next five years, making it a key area of development for Experiential retail.
There are other roles in retail that are not obvious. Artificial intelligence streamlines the online shopping process from the moment you start browsing until the time it lands in your hands. Personalisation and virtual try-ons have been shown to reduce the number of returns a shopper makes, cutting back on transport and packaging.