When man and machine work hand in hand – the use of AI in retail


Artificial intelligence (AI) is one of the most disruptive technologies of recent years. It will also significantly impact retail in the future, which is already facing significant challenges due to increasing digitalization. Customer needs have changed – strongly influenced by online shopping offers – supply chains are unstable, and skilled workers are becoming scarce. AI is the game changer for retailers to work successfully, efficiently, and in a customer-oriented manner. There are many ways in which AI can be used, such as in administration, logistics, transportation, and directly in the store. As technology and IT novices, however, we find it challenging to keep track of the possibilities. What specific advantages does AI offer retailers?


AI in Personalized Marketing

AI can create individual customer experiences through personalized marketing content for emails and ads. This content is developed based on customer data, such as previous purchasing behavior and customer preferences. AI can predict what type of advertising content will be most appealing to individual consumers, increasing the effectiveness of marketing campaigns. With the help of generative models, AI can also suggest new or alternative products to customers. By recognizing preferences and possible future needs, the shopping experience is significantly improved.


AI in Customer Service

Developing interactive chat programs is a great way to leverage AI technologies while improving retail customer service and customer engagement. These bots use AI and machine learning to communicate with customers, answer common questions, and guide them to helpful answers and results. In turn, these bots collect valuable customer data that can be used for future business decisions.


AI in Business Processes

AI in retail enables better demand forecasting. By analyzing market, consumer, and competitive data, AI tools predict industry changes and become part of a company’s marketing, merchandising, and business strategies. This also impacts supply chain planning, pricing, and promotional planning.


AI in Cost Reductions

AI-supported analyses integrated into operational processes in customer contact, inventory management, and capacity planning significantly improve forecasting accuracy. This enables optimized resource utilization, resulting in lower costs and higher margins.


AI in Product descriptions

Creating compelling and informative product descriptions is a crucial factor for sales. Modern AI writing tools such as ChatGPT can create high-quality product descriptions. While in most cases, these still need to be post-edited, given the need to produce large volumes of new product descriptions, this can be a significant time-saver in the day-to-day work of marketers.




Data must always be up-to-date and accurate for AI to have the potential to revolutionize the way companies work, interact with customers, and increase sales.

It is often feared that measures such as those described above threaten retail employees. The results of an international study by Honeywell show this is not the case. They make it clear that most retailers see artificial intelligence (AI), machine learning (ML), and computer vision (CV) primarily as tools for expanding and optimizing their workforce rather than replacing employees. The new technologies take the pressure off employees and allow them to focus on higher-value tasks, leading to greater job satisfaction.

 Artificial intelligence is a crucial technology for the future of retail. Without AI, retailers cannot keep pace with rising customer expectations, growing competition, and changing market conditions. Nevertheless, social intelligence will continue to be necessary. After all, who doesn’t appreciate being greeted with a personal smile and receiving expert advice? Human encounters are simply irreplaceable.