AI Platform for Retail

Frequently Asked Questions

• How is AI used in retail?

  AI is used across the entire end-to-end lifecycle of a retail company. From product development to production to supply chain to marketing, there are use cases for virtually every retail capability. DataRobot customer use cases include:

  • Forecasting demand for new products in order to accurately plan inventory and resources
  • Pricing optimization to maximize profits
  • Maximizing the effectiveness of marketing campaigns by delivering the right message to customers through the right channel
• What are the benefits of AI in retail?

  The benefits of AI in the retail industry are wide; however, there are three key areas that remain the most common:

  • Maximizing revenue with price optimization
  • Reducing costs with demand forecasting
  • Increasing efficiency by enabling analytics teams to accomplish more with their time
• How can AI be utilized for grocery retailers?

  Grocery retailers can utilize AI in a number of ways including optimizing the number of delivery or pickup slots; forecasting demand by SKU and by store; utilizing markdown optimization; leveraging “Next best offer” to reach individual customers with the right offer, channel, and message to drive conversion; and modeling propensity for individual customers to purchase newly launched private label items.

• How is AI used to enhance in-store experiences?

  Today, AI enables stores to deliver personalized shopping experiences – the same customers see online –  in-store. Here are a few examples of how AI helps retailers:

  • Create and deliver customized product offerings
  • Deliver personalized messaging to each customer
  • Optimize in-store displays to maximize customer engagement
• Which types of retailers will benefit from AI?

  All retailers across the board – from large department stores to small business grocers– can reap the benefits of AI. Retailers can use AI to collect and manage data for customers, products, and operations to further enhance their business.

• How does AI impact sustainability in retail?

  Sustainability is one of the most important issues for retailers today. AI impacts sustainability in a number of significant ways, including:

  • Demand Forecasting: By predicting the right amount of customer demand, retailers can eliminate waste by not overproducing goods.
  • Markdown Optimization: By being able to price perishable products effectively, grocers can make sure they sell out of inventory and help eliminate the waste of unsold items.
  • Transparency: AI can be used to generate real-time predictions of the carbon footprint of individual products, providing the transparency and data that consumers increasingly desire.
• Will AI affect the future of retailing?

  The future of retailing is rapidly evolving – both in-store and online – as retailers leverage AI to continue personalizing the shopping experience. The ecosystem of data available to retailers is growing. For example, as consumer behavior data grows, the usage of AI will continue to grow within retail to personalize the entire experience to consumers – wherever they are.