Top 10 Examples of Using AI in Retail

Artificial intelligence in retail is a promising trend that drives all industry segments. AI technology helps retailers reduce costs and create consumer-tailored experiences. The retail digital revolution has improved efficiency and accuracy in all aspects of this industry, thanks to predictive analytics that help businesses make wise business decisions.

This would not have been possible without artificial intelligence. Retail AI technology has supported the vast majority of companies with the high levels of data that are being used to improve retail operations and business opportunities. AI and machine learning collect and analyze vast amounts of data and use that information to make sales forecasts. Retail AI uses behavioral analytics and customer intelligence to gain useful insights across a variety of market demographics, thereby improving multiple customer service touchpoints.

Top 10 AI Applications in Retail 

The main uses of AI in the retail industry are:

Supply Chain Planning

Retail AI creates demand forecasts. AI business tools anticipate industry changes by gaining valuable insights from competitive data and markets. As a result, AI tools will make positive changes to a company’s marketing and merchandising strategies. These affect both supply chain planning and pricing.

Interactive conversations with customers

Build interactive chats with customers using AI to improve customer service in the retail sector. Chatbots use AI to actively engage with customers, answer questions, and lead to useful results. Chatbots then collect useful customer data that can be used to make future business decisions.

Adaptive Home Page

Digital portals and mobile phones recognize customers and adapt their electronic retail experience to reflect previous shopping behavior. AI systems continually evolve the user experience and create ads relevant to all interactions.

Personalized shopping experience

Advanced CRM systems are accustomed to learning customer preferences through repetitive interactions to create detailed consumer profiles. It then uses this information to create personalized consumer shopping experiences.

Warehouse management and operational optimization

The AI-enabled logistics management system adjusts retailers’ delivery schedules and inventories in real-time to create an efficient supply chain while meeting customer demands for immediate support. AI technology also enables operational optimization.

Visual curation

The algorithm engine effectively transforms browsing behavior into digital retail offers and enables consumers to find relevant products by providing image-based search recommendations based on similarity.

Customer care

AI-powered conversation assistants use natural language processing to allow consumers to easily navigate questions and troubleshoot problems, optimizing staff needs, 24/7. It works to improve the customer experience by providing support whenever needed.

Responsive R & D

Machine learning algorithms collect and interpret customer feedback and purchase data. This information is used to support the design of next-generation products and services that meet the unmet needs of the market.

Emotional reaction

The AI ​​interface can identify consumer thinking and reactions after recognizing faces, biometrics, and voice cues. This greatly helps to provide the most appropriate products and recommendations and to ensure that retail involvement does not lose its importance.

Product layout

AI is a great help to retailers in how to position items in stores. Machine learning can use sales data to discover patterns in consumer buying behavior. Based on this, AI makes recommendations for items to display in order to encourage customers to make more purchases. Recommendations are based on actual data provided by customers who shop at a particular store.

Best Examples of Artificial Intelligence in the Retail Industry

These are the best examples of AI improving the retail experience.

Walgreens uses AI to track influenza epidemics

Influenza can be fatal to some people if not treated properly. With the right information, people can take strategic actions to keep themselves healthy. Walgreens uses data from antiviral prescriptions filled out at various locations to track the spread of influenza. Online maps not only help customers know how bad the flu is in their area but also help increase the inventory of flu treatment products in areas affected by Walgreens.

Sephora helps you find the perfect makeup

With AI, you can visit the Sephora store and find the ideal makeup color without putting anything on your face. Color IQ scans the customer’s face and provides recommendations tailored to the shades of the foundation and concealer. In addition, Lip IQ helps you find the perfect lipstick color. This can save you a lot of time and trouble in finding the perfect shade.

Taco Bell helps to order tacos directly

Taco Bell was one of the first restaurants to allow customers to order food directly via AI. Tacobot works with Slack to make it easy for customers to text and say orders. Large group orders are also possible.

WalMart uses a robot to scan the shelves

WalMart has begun testing robots that scan the shelves to find missing items, items that need to be replenished, and price tags that need to be changed. Robots allow human employees to spend saved time with consumers, eliminating the need to stand in front of empty shelves.

ThredUp uses AI to remember customer preferences

ThredUp is an online store that sells goods boxes containing used clothing items tailored to your style. Consumers pay for products they like and return those they don’t like. The AI ​​algorithm remembers each customer’s choices, so future boxes will match the customer’s style. Boxes with subscriptions are much better than searching for individual pieces.


There are many other opportunities that AI can bring to retail. AI enables digital transformation and distinguishes between successful and unsuccessful businesses. AI is needed by retailers to attract customers, create personalized shopping experiences, gain insights from diverse data, and enhance flexible logistics networks. By using AI to connect parts of the business, retailers have a comprehensive understanding of stores, consumers, and products to help them manage their inventory.