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       Retailer spending on AI to grow nearly


       A  new  study  from  Juniper  Research  has  found  that   Research  author  Nick  Maynard  highlights:  “Retailers
       global retailer spending on AI will reach $7.3 billion per   are  looking  to  replicate  the  success  of  Amazon  in
       annum  by  2022,  up  from  an  estimated  $2  billion  in   making AI a core part of their operations, with retailers
       2018,  as  retailers  target  new  avenues  to  increase   increasingly  turning  to  solutions  such  as  AI-optimized
       personalization of the customer experience.         pricing  and  discounting,  as  well  as  demand
       The new research, AI in Retail: Disruption, Analysis and
       Opportunities:  2018-2022,  found  that  retailers  will   Demand forecasting crucial element of AI use
       heavily invest in AI tools that allow them to differentiate   The research found that AI-backed demand forecasting
       and  improve the services they  offer customers. These   is  increasingly  becoming  a  key  tool  for  retailers.  With
       range  from  automated  marketing  platforms  that   the  advent  of  specific  days  for  shopping,  such  as  the
       generate tailored, timely offers, to chatbots that provide   Black  Friday  phenomena,  understanding  customer
       instant customer service.
                                                           demand  and  correctly  planning  based  on  this  is  more
                                                           important than ever.
       Customer  service  and  sentiment  analytics  to  lead   Juniper argues that retailers must invest in this area in
       spending                                            order  to  stay  competitive,  particularly  in  low-margin
                                                           retail  segments.  It  noted  that  the  cost  of  AI  tools,
       Juniper’s  latest  research  found  that  spending  will  be   currently  uneconomical  for  many  players,  will  drop  by
       strongest in customer service and sentiment analytics,   8%  over  the  next  4  years,  helping  realize  a  300%
       where  AI  can  be  applied  to  understand  customer   increase in software spend.
       reaction  to  the  products  purchased  and  the  service
       received.  This  will  prove  to  be  a  key  tool  for  retailers   You might be interested in Juniper Research’s
       seeking to improve their customer experience        complimentary whitepaper, Why Are Retailers Excited
                                                           About AI? as well. ◊
       .In  2022  retailers  are  expected  to  invest  in  customer
       service  and  sentiment  analytics  (54%),  AI-based                                  By MediaBUZZ
       Automated  Marketing  (30%),  and  demand  forecasting

       Juniper  predicted  that  retailers  will  use  AI  insights  to
       design  and  target  new  product  ranges,  as  well  as  to
       create promotional offers.

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