Page 11 - AeM_Feb_2018

RESEARCH, ANALYSIS & TRENDS

Retailer spending on AI to grow nearly

fourfold

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
forecasting.”
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
(16%).

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

MediaBUZZ Pte Ltd - Independant ePublisher for Asia