AI and Retail: Our Predictions for 2024
In recent years, technological innovation has opened up numerous possibilities for retail businesses, especially in terms of product management and security. Our software, Veesion, for example, has enabled more than 3,000 merchants in 25 countries to reduce their losses due to theft by 60%. As we start 2024, we offer our predictions for the role of AI and new technologies in the retail sector.
AI Evolution
In 2024, AI used in retail is expected to provide a more intuitive and personalized experience for users. Indeed, its expanded usage in recent years has multiplied example data, allowing it to learn from various situations and adjust its parameters. Similarly, user feedback has led to corrections and improvements. This trend is likely to continue given the enthusiasm for this technology. Additionally, constant experimentation and increasingly refined programming will favor predicting potential incidents before they occur and finding solutions beforehand.
Integration of AI with Other Technologies
Retail security AIs, like Veesion, will integrate with other technologies to complement ecosystems. This is the case with IoT (Internet of Things), from which connected stores will benefit: GPS, RFID scanners (reading information stored in chips), connected shopping carts, and motion sensors, for instance, offer the possibility of tracking objects. The combination of all these tools thus increases security in sales spaces and also improves inventory management. Moreover, they can help predict customer behavior towards products.
Broader Adoption of AI
Shoplifting is on the rise: over 14% in 2022 according to the Ministry of Interior, representing a loss of 2 to 3% of revenue. Retail professionals are increasingly investing in surveillance devices and recognizing the effectiveness of AI in preventing shoplifting. Veesion software, in particular, can detect suspicious behavior and alert the merchant or security agent without them having to stay in front of surveillance cameras. We therefore anticipate a broader adoption of AI by all types of commerce, from small shops to large retail chains.
Gaining More Insights into Customer Behaviors
As we have seen, AI is very useful in combating shoplifting. But it has a second function, which could develop in 2024: obtaining information on customer behavior and store operations. By analyzing videos, AI can, for example, identify peak attendance times in a store, spot congested areas, count entries, estimate waiting times, etc. It is then possible to make informed decisions in marketing and management to attract customers at certain hours, rearrange the space, or reorganize employee schedules.
Increase in Automated and Autonomous Stores
Autonomous stores are starting to emerge, like Amazon Go, Auchan Go, Monoprix’s Black Box, Colruyt’s Okay Direct, or Carrefour’s BuyBye. Artificial intelligence plays a central role in this type of commerce as it can detect and weigh products. The buyer then receives the bill on their personal account or is led to pay through an app or contactless card. The shopping experience is smooth and shoplifting risks are reduced. We will likely see an increase in these automated stores.
Rise of Robots in Retail
Robots are expected to become more prevalent in retail stores. In the store itself, they will first serve to assist customers, for example by providing information or helping them locate an item. Then, they will be employed on a larger scale to manage inventory: drones for inventory, retrieving products for orders, sorting parcels, etc. Finally, robots will roam the aisles and detect unusual activities. Combined with video surveillance, they will thus deter potential shoplifters.
Greater Use of Smart Shelves and RFID Technology
Shelves equipped with RFID technology will become more widespread in retail stores. The principle is as follows: electromagnetic fields in the chips of labels are identified by readers. This technique offers several advantages: it allows tracking the movement of a product from the shelf to the store exit, triggers an alarm at the gate if the item has not been checked out, manages inventory, and also alerts in case of suspected theft (unusual quantity removed from a shelf).
Boom in AI-Based Analytics to Prevent Thefts
In 2024, artificial intelligence will play a decisive role in predicting and preventing theft in retail stores. Just like Veesion’s AI, it can rely on customer actions to detect suspicious gestures like putting an item in a pocket or stroller, thanks to a self-learning solution. An alert is then sent to the security manager to decide whether to intervene to deter the customer. This thus prevents the act and potential conflicts.
In conclusion, AI will continue in 2024 to transform the shopping experience, customer service, inventory management, and security of retail businesses. Future advancements promise to further energize this sector and improve the working conditions of managers, security agents, and employees.
