Retailers prep artificial intelligence, machine learning, computer vision investments in coming year
Nearly six in ten retailers plan to adopt artificial intelligence, machine learning and computer vision technologies over the next year to enhance the shopping experience offered within stores and online, according to research by Honeywell.
This also indicates that retailers see this new technology as complementing and enhancing their workforce and not eliminating jobs.
Honeywell’s research involved some 1,000 retail directors across the United States, Europe, the Middle East and Africa in leadership roles – including IT, operations, and customer experience.
Key findings include:
38% of those surveyed are using these technologies for select use cases or regions
35% are using them on a larger scale
24% are in a pilot phase or in discussions
Only 3% said they were not deploying these technologies at all
48% of respondents identified AI, ML and CV as the top technologies expected to have a significant impact on the retail industry over the next three to five years.
“In today’s retail environment, there is greater attention on the customer experience along with increased need to innovate in a hyper competitive environment,” says George Koutsaftes, President and CEO at Honeywell Safety and Productivity Solutions.
“New technologies like AI, ML and CV have the potential to enable retailers to deliver personalised experiences, optimise operations, improve inventory management and prevent fraud – all of which enhance customer satisfaction and can lead to increased sales and profitability.”
The top three reasons leaders gave for deploying new technologies included:
Improving customer experience (59%)
Driving greater productivity (49%)
Achieving cost efficiencies / return on investment (ROI) (44%)
Survey respondents predict that AI, ML and CV will bring the greatest value to four key functions in retail: automating and supporting day-to-day tasks, such as picking and scheduling; supporting customer service, including live chat, for digital channels; creating targeted customer marketing campaigns and improving inventory management.
Most retailers see AI, ML and CV primarily as tools to augment and maximise their workforce, rather than to replace employees. Only 7% of those surveyed said their primary purpose for these solutions would be to reduce human labour.
The survey data does, however, indicate three primary barriers to widespread adoption:
Budget restrictions (39%)
Difficulty in demonstrating business value (29%)
Lack of internal expertise to maintain the technology (21%)
“The importance of attracting and keeping customers and employees has never been greater,” says Koutsaftes.
“As AI continues to evolve, expect an exciting future where innovative technologies unlock new levels of efficiency, engagement and satisfaction in retail.”
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