Gone are the days of typical supermarket shopping experiences. Supermarkets can now provide personalised, efficient, and seamless services to their customers thanks to AI.
Get ready to explore how AI-driven technologies are being used to create smarter, more efficient supply chains. This is done in order to improve the shopping experience, and enable predictive analytics for better decision-making.
Yes, Artificial intelligence is transforming the retail landscape. Grab a shopping cart and prepare to embark on a journey through the aisles of innovation.
If you are hearing about AI-integrated supermarkets for the first time, you probably have a lot of questions. And I am here to answer some of your queries.
AI-integrated supermarkets have begun popping up in some neighbourhoods in the US. The pioneers in this field were Amazon, with their signature “Amazon Go” stores. Currently, there are almost 50 Amazon Go stores in the US. And just as expected, many other brands followed in Amazon’s footsteps and started their own AI supermarkets. Walmart came out with “IRL,” and Carrefour have started “Carrefour Plus” in the UAE.
Is AI a Necessity in the Retail Landscape?
Now, one of your questions might be “Why AI in supermarkets” or “Why fix something that is perfect”. The truth is that the retail market is far from perfect. The market has suffered multiple obstacles with no solution in sight. These problems have existed in the landscape for so long that retailers have accepted them as the norm. But who knew AI would be the solution?
After reading what was above you are probably thinking about theft. Theft in many forms has corrupted the retail landscape. Studies conducted by the NRF in US show that the industry has faced a loss of $95 billion in 2022. Yes, you read that right, and this is only in the US, only in 2022. Can you imagine what the number would be if this study included information from all around the world?
To tell you how AI in stores can reduce theft, first I have to tell you how AI has been integrated into the stores and how it functions.
How It Works
AI has been integrated into every aspect of the retail process, from inventory management to checkout. And with these advancements, the way one shops has also changed. In traditional retail stores, you enter the store, get a cart, then take everything you need from the shelves. Then proceed to wait in a checkout line for who knows how long. You see, this process is time-consuming, tiring, and all together outdated.
The new AI stores operate completely differently. When you enter the store, you should scan a QR code on your phone. After this, proceed to take what you want, then just leave the store. That’s it. No long queue at the checkout counter; no long payment process; just walk out of the store. And comically, Amazon named the tech that lets you do this the Just Walk Out technology.
Being a curious reader, you are probably wondering how the payment process works. Remember that you have to scan a QR code when you enter; this code is present on the store’s app, and the app will have your credit or debit card details. That way, when you exit the store, the amount you have to pay will automatically be deducted from your account.
Just Walk Out Technology
Now you are wondering how the system knows how much you have to pay. How it knows exactly what you have taken from the store. This is where the “Just Walk Out” technology comes into play. An integral part of this technology are cameras. A lot of cameras. That’s why, when you enter an AI store, you can see that the ceiling hosts a lot of cameras. These cameras track every person in the store at all times. When it comes to the products that people will buy, every piece of inventory is tagged and labeled to be entered into a database. This way, the cameras can easily track the products when they enter a customer’s cart. These cameras are so advanced that they alert the system if the customer has returned the product to a shelf, so that they do not pay for products they did not take.
How AI in Retail Help in Reducing Theft
The cameras that make you pay for everything are the same ones that help prevent theft.. These cameras record every person in the store and every movement that every person makes. The way you have to enter the store also makes it difficult to steal. Because in order to enter the store, you have to scan your QR code, thus giving them your banking information, and you will end up paying for anything you take. Even if you manage to hide some product without anyone noticing, I will guarantee you that the camera has already made note of it and is ready to charge you for it as you walk out of the store.
Robots as Daily Wage Workers
This is not the only part of retail that AI has improved. As I mentioned before, all products are tagged, which helps in inventory management as shelves in the store have sensors that alert the system when they are running low on certain items. Sometimes there are robots in these stores that are tasked with restocking the shelves, which means that these stores can run without any help from humans.
There are other stores where you can give your shopping list and these robots prepare your order and you can just pick up your items from the store. Some stores even have robots or autonomous drones that will deliver these products to your house. Sometimes there are robots in these stores that are tasked with restocking the shelves, which means that these stores can run without any help from humans.
Even simple tasks are being done by robots with AI. Marty, a robot in stores, has been tasked with pointing out potential hazards to shoppers, such as spills, wet floors, etc. Tally, the robot, is tasked with inventory management. Tally notifies employees when a certain product has to be restocked or moved around. The robot also looks after merchandise presentations. Walmart uses Alphabot, a robot used to increase the speed at which customers’ online orders are fulfilled. Another hazard detection robot like Marty, Millie, can not only detect spills but clean them up too.
Conclusion
Another thing to keep in mind is that just like how AI is constantly learning, the store is constantly learning how to solve any issues that the customer is facing. Whether the thought of AI in the retail market excites you or makes you feel uneasy about the whole experience, visiting an AI store will definitely resolve any issues you have with the concept. So if you hate standing in long lines in supermarkets, head to your nearest AI store, which may be very far away as there are less than 100 in the whole world, but don’t worry, expect one in your neighbourhood very soon.