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8 Examples of AI in Retail

AI in retail has created a whole new experience for retailers, staff, and shoppers from personalized recommendations to supply chain optimization.

AI, or artificial intelligence, continues to leave its mark in significant industries. In retail, AI is making big waves and is changing every retail business and retail experience. So how is AI being applied in retail environments and businesses? What are the examples of AI in retail that are already improving the traditional retail experience?

How is AI being used in retail?

AI is adaptable, which makes it beneficial in an environment such as retail stores. It is revolutionizing the retail industry in numerous ways. And most importantly, it offers retailers various opportunities to enhance customer experiences, optimize operations, and drive sales.


Here are some general, popular situations where you can find AI in retail:


  1. Personalized Recommendations: AI algorithms or machine learning can analyze customer data, including past purchases, browsing history, and preferences. With this data, they can provide personalized product recommendations to customers and prospects. This helps retailers increase sales by offering relevant products to each customer or by enticing new shoppers and potential fans of the store. Overall, this enhances their shopping experience and loyalty.
  2. Inventory Management: AI-powered systems can forecast demand, optimize inventory levels, and automate replenishment processes for retailers. By accurately predicting customer demand, retailers can minimize stockouts, reduce excess inventory, enhance order tracking for e-commerce, and improve overall inventory turnover. This leads to cost savings and increased profitability for a lot of retailers.
  3. Visual Search and Image Recognition: AI in retail can provide visual search capabilities in digital platforms or in stores. This will allow customers to search for products using images instead of text. By leveraging image recognition technology, retailers can enhance the search experience, facilitate product discovery, and drive conversions.
  4. Price Optimization: AI algorithms can also analyze market dynamics, competitor pricing, and customer behavior to dynamically adjust prices in retail stores. This enables retailers to optimize pricing strategies, maximize profits, and remain competitive in the market.
  5. Fraud Detection and Prevention: AI-powered fraud detection systems analyze transactional data and detect suspicious patterns indicative of fraudulent activities in retail stores. By identifying and mitigating fraud risks in real-time, retailers can protect themselves from financial losses, keep customers safe in their establishments, safeguard customer information from any scams, and more.
  6. Predictive Analytics for More Accurate Sales Forecasting: AI algorithms analyze historical sales data, market trends, and external factors to generate accurate sales forecasts for retailers. By leveraging predictive analytics, retailers can anticipate demand fluctuations, optimize inventory levels, and plan marketing campaigns that are most likely to succeed.
  7. Customer Service Chatbots and Automated Replies: AI-powered chatbots engage with customers in real-time, especially on the retailers’ websites. They answer inquiries, provide product information, and assist with purchases. Automated replies, on the other hand, make sure that customers or prospects get a reply immediately, even when retailers don’t have customer service available at the moment. These virtual chatbots are available 24/7, improving customer service efficiency and satisfaction while reducing operational costs.
  8. Supply Chain Optimization: AI optimizes supply chain operations by analyzing data from various sources. This includes suppliers, transportation routes, and demand forecasts. By streamlining logistics processes, reducing lead times, and minimizing disruptions, retailers can improve supply chain efficiency and reduce costs.
  9. Enhanced Customer Insights: AI algorithms analyze vast amounts of customer data to uncover valuable customer insights. This includes preferences, behavior patterns, and emerging trends among retail customers. By understanding customer needs and preferences more deeply, retailers can tailor marketing efforts, develop targeted promotions, create a better store layout, and enhance customer engagement in the store.
  10. Virtual Try-On or Virtual Fitting: AI-powered virtual try-on and fitting rooms with extended reality technologies are an impactful addition to retail stores. They allow customers to visualize products in real-world environments before making a purchase, especially when it comes to clothes, accessories, footwear, jewelry, and more. This immersive shopping experience enhances engagement, reduces returns, and increases confidence in buying decisions.


It’s true that AI is empowering retailers to deliver better service, products, and the overall shopping experience to their customers and community. With the ever-evolving retail landscape, AI can be used by retailers to grow, adapt, and stay competitive.

Examples of AI in retail stores

According to Mordor Intelligence, the market size for AI in retail is estimated at USD 9.85 billion this 2024. In 2029, it’s expected to grow and reach USD 40.49 billion. This is a significant forecast showing the eagerness of the retail sector to adopt AI, automation, and digital technologies into their stores in the coming years. From IoT (Internet of Things) to AI-powered algorithms to forecasting systems, retailers are employing AI in retail stores to streamline operations, enhance customer experiences, and drive efficiency.


Here are a few examples of AI in retail stores:

  1. Cashierless stores
  2. Robotic assistants
  3. Digital price tags
  4. Smart shelves
  5. In-store chatbots and virtual assistants
  6. Automated checkout solutions
  7. Automated inventory management systems
  8. Augmented reality-powered fitting rooms

#1 Cashierless Stores

Retailers are implementing AI and other automation tools to create a cashierless store. This is an emerging new retail environment, where customers can simply grab items and leave without having to go through a traditional checkout process. Cameras, sensors, and various AI algorithms track the items customers pick up and automatically charge them as they exit the store.

#2 Robotic Assistants

Retailers are also starting to deploy robots equipped with AI capabilities and advanced technologies. These retail or grocery robots can assist with a variety of tasks in-store. This might include inventory management, shelf restocking, store cleaning, and disinfection, guiding customers to products, and providing product information.

#3 Digital Price Tags

Digital price tags are a modern solution that eliminates the need for traditional paper labels on retail shelves. They usually have advanced technologies and automation capabilities that trump paper tags. As a result, retailers can improve operational efficiency, reduce manual errors and labor, facilitate omnichannel retailing, and strengthen sustainability efforts.


Newton ESL by SOLUM, for example, is equipped with 7-page information capacity and breakneck update speed, among other things, allowing retailers to update hundreds of digital price tags in their establishment. This will help customers make informed decisions as well as streamline their overall shopping experience.

#4 Smart Shelves

Digital price tags can also contribute to smart shelves in retail stores. These smart shelves are equipped with sensors and RFID technology to monitor product levels in real-time. AI algorithms analyze this data to optimize replenishment schedules, prevent stockouts, and improve inventory management efficiency.

#5 In-store Chatbots and Virtual Assistants

AI-powered chatbots and virtual assistants engage with customers in-store, whether via mobile apps or touchscreen kiosks. They provide assistance, answer questions, provide proper navigation, and offer product recommendations to customers. These enhance the shopping experience and reduce the need for human staff or manual labor for retailers.

#6 Automated Checkout Solutions

Retailers are implementing self-checkout kiosks and mobile payment options powered by automation technology and AI in retail stores. These solutions streamline the checkout process, reduce waiting times, and improve overall customer satisfaction. It’s also become a necessary technology for a lot of retailers post-pandemic. A recent survey in the U.K. revealed that 66% of people think self-service increases efficiency when shopping, and want more self-checkouts in retail stores.

#7 Automated Inventory Management Systems

AI-driven inventory management systems automate various tasks related to inventory control. This includes stock replenishment, order management, and even shelf auditing. This kind of AI in retail can help retailers optimize inventory levels, reduce carrying costs, and avoid confusion among staff and customers. Customer loyalty will increase, and retail operations will be simplified.

#8 Augmented Reality-Powered Fitting Rooms

AR technology allows customers to try products, like apparel, virtually to see how they fit or look on them. For example, customers can use AR mirrors to virtually try on clothing or makeup. They can also use smartphones to overlay an item on a live video feed of themselves before making a purchase. These kinds of virtual fitting rooms enhance engagement and increase informed purchase decisions from customers.

Whether it be digital price tags, automated inventory, or self-checkouts, automation and AI in retail will continue to make a difference in the shopping experience.

Do you think your retail store can start benefiting from automation and digital tools? SOLUM ESL can help you get started on your digital transformation with digital price tags! Talk to SOLUM experts today and find out exactly how digital price tags can propel your business into AI integration.

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