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How Is AI Technology Changing The Retail Sector?

Supatman iStockphotocom 1487368730

Daniel Ufland, Co-Founder of Flitch, an AI powered platform that provides instant customised, furniture recommendations from 100+ UK retailers in combination with a human styling service, shares his expert insight on how AI technology is changing the retail sector.

AI plays a pivotal role in helping retailers gather and analyse customer data, offering valuable insights into consumer behaviour, market trends, and emerging design preferences. Armed with this knowledge, retailers can fine-tune their marketing campaigns and product offerings to better meet customer expectations.

AI technology in any sector can revolutionises the customer experience by eliminating the need for endless browsing. We’ve witnessed how Netflix’s ‘for you’ algorithm has completely transformed the way choice is presented, learning from preferences to put users at the front and centre. There is lots the retail sector can learn from this. In the furniture segment, we have built a platform that, through AI analysis of on-site activity, can create a personalised  journey for each customer, offering tailored recommendations and a browsing experience aligned with their individual tastes and needs.

Getting customers to the finish line faster enables us to greatly assist our partner retailers reach their target market effectively and efficiently. We believe AI should benefit multiple stakeholders - wholesalers, suppliers, retailers and, most importantly, the customer – with invaluable insights. Consumers gravitate towards platforms that offer the best user experience (and more likely than not these are powered by AI) and competitive landscapes will reform around these areas of concentration.

Where can we expect AI to go next, and how will it influence consumer patterns in the retail sector?

Soon we will see more ‘try out’ experiences that will let customers virtually place furniture in their homes using AR (augmented reality) technology, improving confidence in online purchases. AI-driven design tools will also enable customers to create customised furniture pieces, tailoring them to their specific preferences, as well as assist designers and manufacturers in creating innovative, efficient, and aesthetically pleasing furniture designs.

Source : Flitch

Image : Supatman / (1487368730)

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01 November 2023

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