By Saurabh Kishore
AI technologies have made significant advancements in recent years, demonstrating their potential to automate various aspects of retail operations. As technology continues to evolve at an unprecedented pace, the question of whether artificial intelligence (AI) can replace human retailers has sparked debate. The potential of AI to take over laborious, repetitive activities and assist customers is its primary advantage in the retail industry. AI-powered logistics may help establish the best delivery routes, while robots can aid with order picking and packing.
According to a report by Future Market Insights, the global artificial intelligence in retail market is forecast to reach US$ 10.76 billion in 2023. The adoption of artificial intelligence in retail is expected to surpass US$ 127.09 billion by 2033.
It is estimated that the demand for artificial intelligence in retail will grow by 28% CAGR between 2023 and 2033. With this rapid evolution of AI and its ability to adapt and learn tasks faster and better than human resources, the inevitable question stands: Can AI replace human retailers?
Enhanced Efficiency through AI:
It is imperative to mention that the retail sector is evolving as a result of the adoption of artificial intelligence. Businesses are now tracking their operations to support corporate goals, improve results, and connect with customers online. A growing number of smart devices and internet users, increased awareness of AI, big data and analytics, as well as government digitization plans, are driving the global spread of artificial intelligence in the retail business.
Moreover, AI-powered retail solutions have revolutionized the industry by automating numerous tasks and streamlining operations. AI algorithms can analyse vast amounts of data, enabling accurate demand forecasting, inventory management, and personalized customer recommendations. By leveraging machine learning and data analytics, AI helps retailers optimize supply chains, reduce costs, and improve operational efficiency.
Additionally, AI-powered chatbots and virtual assistants have transformed customer service. These automated systems provide round-the-clock support, answering queries and guiding customers through the purchasing process. By quickly addressing customer concerns and providing relevant information, AI chatbots enhance customer satisfaction and drive sales.
While AI excels in these areas, it is crucial to recognize that it primarily acts as an aid for a sector which largely thrives on human connect, emotions and values.
The Human Touch:
Despite the advancements in AI technology, there are inherent qualities possessed by human retailers that cannot be replicated by machines. Interpersonal skills, emotional intelligence, and the ability to empathize with customers are essential in building lasting relationships and understanding nuanced customer needs.
Human retailers offer a personal touch that establishes trust and loyalty, creating a sense of community and belonging. They can adapt to each customer’s unique preferences and provide personalized recommendations based on their expertise and intuition. By engaging in meaningful conversations, human retailers can uncover customer desires, fears, and aspirations, ensuring the birth of more personalized and fulfilling brands.
Furthermore, human retailers excel in handling complex customer interactions, such as conflict resolution or offering personalized advice. Their ability to navigate nuanced situations with empathy and emotional intelligence is invaluable in cultivating strong customer relationships.
The Synergy of AI and Human Retailers:
Instead of perceiving AI as a substitute for human retailers, it is essential to recognize its potential as a valuable tool to enhance their capabilities. AI can effectively automate repetitive tasks and handle data analysis, freeing up time for human retailers to concentrate on establishing connections, delivering exceptional customer experiences, and sharing their specialized knowledge. By embracing AI as an aid, retailers can unlock new opportunities for growth and create a more personalized and efficient shopping environment.
As an illustration, AI can serve as a valuable assistant to human retailers by offering real-time insights into customer preferences. This enables retailers to deliver highly personalized recommendations that resonate with shoppers on their platform. Through the utilization of AI-driven analytics, retailers can discern emerging trends, optimize their product assortments, and stay ahead of market demands.
The human element remains crucial in the realm of online retail. Human retailers offer qualities that are challenging for AI to fully replicate. Human retailers can understand and empathize with customers, providing a personal touch that fosters customer loyalty and brand advocacy. They can creatively address unique customer needs and adapt to unforeseen circumstances, offering solutions that AI might not be equipped to handle.
In situations requiring nuanced communication and negotiation, human retailers excel in establishing trust and managing delicate matters.
The fruitful coexistence of AI and human retailers
The future of retail lies in the seamless integration of AI and human retailers. While AI-driven technologies continue to evolve and enhance operational efficiency, human retailers will remain indispensable in building relationships, providing emotional support, and delivering exceptional customer experiences.
AI needs to be recognised as a transformative force in retail while understanding that human touch is irreplaceable. By leveraging the strengths of both AI and human retailers, the final aim should be to create a future of ecommerce where technology enables personalized, empathetic, and efficient retail experiences.
(The authors is Mr. Saurabh Kishore, Chief Technology Officer, DealShare, and the views expressed in this article are his own)
