Professional Documents
Culture Documents
Artificial Intelligence & Its Applications in Retail: Group 3
Artificial Intelligence & Its Applications in Retail: Group 3
Group 3
•Apoorva Anand 2020SMN6729
•Subhanita Mukherjee 2020SMN6735
•Tushar Sharma 2020SMN6749
•Yogesh Sood 2020SMN6740
CONTENT
WHY
AI?
AI- EVOLUTION
AI BENEFITS IN RETAIL
Predictive analytics enhance decisions related to SCM, customer behavior, resources allocation and the
likelihood of goods being damaged, lost or returned.
AI •
•
The incorporation of AI may provide opportunity for
Data driven product display:
• Assortment renewal: Leads to inventory optimization.
• Personalization of services and offerings:
• Predict the personal choices of customers based on their
shopping history.
• Guide/remind them for buying their preferred products
Amazon Go intends to revolutionize retail by creating a frictionless shopping experience
Maintain shopping
Computer Sensor Deep Disrupt the retail experience
vision fusion learning industry with
technology Preference to shop in
person
Amazon Go may bring a radical transformation to the entire retail industry due to its high efficiency and low demand for labor, therefore decreasing company
costs and increasing revenue.
5
Walmart is the world’s largest retail corporation with a focus on affordable prices and strong B&M presence
Supercenters
Revenue $487.9 B •616,000 sq. ft.; 24 hr./day
Walmart serves 260 million customers a
•3465 (76% of U.S. locations)
week through its 2.3 million employees Market Cap $221.59 B
Profit $124.62 B Discount Stores
•46,000 sq. ft.; 15 hr./day; no groceries; conversions
•442 (10%)
9%
9% 56%
63%
6% @IRL and AI
5%
11% implementation
Groceries Walmart
Kroger
Health & Wellness
Albertsons
Entertainment
Costco
All others All others
9
Use case – Walmart IRL(Integrated Retails Labs) – AI Physical Lab
Use case 1
• Customer walk-ins to the IRL store and arrives at a particular shelf in store and picks the
item (Pack of bottles).
• AI Defect's the product on the shelf on movement.
• Recognize the specific product (meaning, the differences between 1 bottle or 2 bottles)
• Compare the quantities on the shelf to the upcoming sales demand.
Use case 2
• Customer walk-ins to the IRL store and arrives at a particular shelf in store and picks the
item.
• AI Defect's the customer movement and alerts that he is moving towards Registers.
• Ensures that Register is open/working for point of sale.
Use case 3
• Customer walk-ins to the IRL store and arrives at a Cart pick up.
• AI Defect's the customer walk-in to store and alerts associate and ensures that Cart
availability is there for customer
Customers can trust that the products/Carts/Register’s are there and will be available during the times they shop
AI for Wal-Mart E-commerce Search- Use case
Navigation
Walmart Amazon
7%
• Increase order accuracy
20%
•Reduction in time used to process • Cost savings per fulfillment center
25 inventory $22.5 MM
% •Reduction in inventory processing
expenses 75%
• Reduction in inventory cycle length
Impact on Consumers
• Fewer delays due to errors
• Store-front technology
Walmart Vs Amazon Vs iKea- Comparison Slide
13
IKEA - “ASK ANNA”
• Mobile app allows customers to see what the furniture will look like and fit in a
certain space.
Ikea Place • User Just have to upload the photo in the app, IKEA AR can measure the size of the
room and allows you to drop a piece of furniture in this image from the IKEA
catalog.
• Apart from the furniture, the User can get building ideas and tips to make people
smile.
• As the business grows, Ikea's
warehouse is also flooded with
sales returns. This has been a
problem for the management of
this restored furniture.
• Be prepared for a weird future when your bed speaks to you whenever you put your ass in it -
graciously someone other than your ready-to-assemble furniture
• The Danish company Space10 is currently testing people with what they would like to see in a
virtual assistant
• System continuously monitors/analyse the video/ images provided by the cameras for building a
model for posture and position of each person in the store.
• The data from camera and sensors from the shelves provide data to the deep learning algorithms to
form a comprehensive understanding of every individual and product in the store and deciding
whether the customer has picked up something from the shelf.
• The computer vision technology identifies the product and individuals in the store.
• The incorporation of AI may provide opportunity for
• Data driven product display: The AI models can predict the set of preferred products by customers
and Amazon can keep those products at display.
• Assortment renewal: The system is able to generate the information of availability of the product in
the store shelves and its timely renewal. This leads to inventory optimization.
• Personalization of services and offerings: AI based system can predict the personal choices of
customers based on their shopping history and guide/remind them for buying the products.
• Privacy concerns of customers.
• Issues of detection of thefts.
• It was reported that the technology could handle
only 20 people in the store at a time.
• How many SKUs can be handled by this concept
store
In the physical retail space AI is making its impact through Augmented reality. Huge
number of companies have come on board to provide AR support to shopper
experiences in a various industries such as fashion and automotive.
As of 2018, estimated size of augmented reality in the Retail industry has been
around 1.55 billion dollars USD.
Thank you