How artificial intelligence is transforming retail

The days of traditional retail business are over. If retailers want to keep up with the latest online trends, metaverse, and Web 3.0, they need to create omnichannel shopping experiences tailored to their customers. AI is the key to future-proof retailing.

Demand for AI in retail is on the rise

Global AI in the Retail Market is estimated to reach USD 17,086.54 Million in the year 2028. The Market stood at a revenue of USD 2,938.20 Million in the year 2021 and is expected to exhibit a Compound Annual Growth Rate (CAGR) of 34.10%. -  Vantage Market Research 

The growing demand for AI is largely driven by falling costs for powerful equipment and the increasing availability of turnkey solutions that can be deployed quickly and with little effort. In addition, 5G accelerates the processing and transport of data between systems in the IoT.

Ideal conditions for retailers to get involved with AI for their business now. Here are some sample applications for inspiration…

AI applications in the retail business

• Smart product recognition and automated billing make stores cashier-free
• AI interfaces such as chatbots and interactive displays support customer service
• Smart pricing helps manage demand and boosts sales
• Predictive analysis assists in price forecasting based on demand and seasonal trends
• Smart supply chain management and logistics improve product availability
• Machine Learning Models automatically categorize and group products
• AI object recognition enables visual search online and in store
• Virtual fitting rooms with smart mirrors support self-service at the highest level
• Predict customer behavior based on age and in-store movement
• Improve sales floor layout based on customer behavior analysis over time

This list could go on; the variety of applications for AI in retail is nearly limitless. Accordingly, the number of solutions that retailers can already deploy today is exploding.

Azena helps retailers unleash the power of AI to turn the security cameras in their stores into business all-rounders, capable of much more than just delivering video of thefts. 

With our IoT platform, cameras, and application store, it's easier than ever to benefit from the latest AI video analytics features with minimum effort.

How AI video analytics takes retail to the next level

Video technology is installed in almost every retail store, primarily it is conventional CCTV designed to catch thieves in the act. However, cameras equipped with powerful processors and connected in the IoT can do so much more for business than just deliver raw video.

Here are some examples of smart retail applications in more detail that can already be realized today with Azena-powered cameras and AI from the Azena Application Store.

Example #1: Sell more with responsive advertising

Connecting smart video cameras with in-store displays creates a completely new type of communication system. Cameras equipped with AI video analytics, for example, detect which colors a customer prefers and trigger a nearby display to promote a suitable product.

Source: FLOW Retail at the Azena Application Store

Technically, this is a simple task for AI cameras. Empowered by an AI analytics app that can be installed with just a few clicks, the camera is able to analyze customers' clothing in the store based on features such as color and type like tops, pants, or shoes.

Connected to LED displays, appropriate advertisements are triggered directly in the camera without having to send data to the cloud and process it in connected systems. Edge computing enables each camera device to both analyze data and control it in one go.

For more applications and info download our retail whitepaper now. 

Example #2: Keep shelves filled automatically

Gaps in shelves or displays are the No. 1 sales killer. Especially in busy times, in-house logistics is a challenge for retailers. Out-of-shelf video analytics provide near real-time information on product stock levels and can alert employees when restocking is required.

Source: Shelf monitoring at the Azena Application Store

Shelf monitoring using AI cameras can be deployed not only on shop floors but also in warehouses to monitor inventory in real-time and detect or even forecast shortages in a timely manner. This allows the entire supply chain to be monitored reliably and automatically.

Good to know: Unlike RFID and other tracking methods, retail video analytics does not require expensive equipment beyond the facility and works without direct customer contact.

Example #3: Provide self-checkout customers accept

Customer self-service not only helps retailers use their resources more efficiently but also reflects the buying habits of a new generation of shoppers who value autonomy. To achieve maximum customer acceptance, self-service must be as simple and intuitive as possible.

AI video technology can make self-checkout really simple and smooth. For example, cameras equipped with AI object recognition can detect loose goods such as fruits and vegetables and automatically assign them to the weight determined on the scale.

The following figure shows the camera AI learning to recognize fruits during weighing:

Source: Neurala Inc.

AI object recognition enables many more similar applications to simplify self-checkout. For example, multiple cameras could detect all products in a shopping cart at once and automatically bill them without the customer having to take them out. Creativity has no limits.

Much more to discover

• Browse all AI retail apps for security cameras in the Azena Application Store.
• Find more articles about applications of AI in retail on the Azena Blog.

How to get started with AI video analytics

1. Choose the Azena-powered camera that fits your business requirements.
2. Sign up for the Azena platform and Application Store.
3. Test the apps that can help make your business more successful.
4. Buy the apps you want and start using AI video analytics in your store.