Five pitfalls to avoid when deploying AI in retail
Many people in retail are talking about how artificial intelligence (AI) will transform the sector, from chatbots and robot-driven warehouses to increasing personalisation. But it is by no means a magic bullet and there are a variety of decisions that have to be carefully considered.
In an exclusive comment piece for RTIH, Valter Andersson, Technical Solutions Manager at Nosto, stresses the importance of remembering that when people discuss AI in retail, they’re normally referring to machine learning - a subset of AI in which algorithms are trained to learn and get better at performing specific tasks based on the patterns they identify in data. “In our experience there are five common pitfalls that stop this kind of AI delivering fully on its promise,” he writes.
These include deploying AI in the wrong areas. “Like any technology, you need to focus on achieving concrete business goals, such as increasing revenues or margins. Not being clear enough on this, or directing AI at the wrong targets, could leave you disappointed,” says Andersson.
“Begin with the areas where you are likely to drive the biggest impact, while minimising effort and disruption. Once you see returns there, move on to more marginal applications. If you’re looking to use AI to improve aspects of the online user experience, for example, start with the home or checkout page, where any improvements can drive the greatest potential benefit. Then move on to less visible or active parts of your site.”
Read the full comment piece here.
