Applications of Artificial Intelligence in small retailers

The use of AI (Artificial Intelligence) is redefining the way we perform certain tasks. As companies implement digital transformation in their businesses, they are increasingly incorporating AI applications. These enable process streamlining, efficiency and data-driven decision making.

The retail sector is no exception to this trend. While in other sectors artificial intelligence may still be in its infancy, the retail sector can benefit from its implementation by increasing operational efficiency, establishing predictive models or analyzing market trends.

However, despite the many advantages of this technology, according to data from the study Artificial Intelligence Indicators in Spanish companies by the Secretary of State for Digitalization and Artificial Intelligence, only 7% of small businesses in Spain use it. And although the implementation of AI seems to be only available to large companies, the reality is different. There are a wide variety of solutions that small businesses can implement. Keep reading to find out more!

How can AI help small businesses?

Generally speaking, artificial intelligence can facilitate a large number of activities. However, the retail sector can use it to improve sales and marketing activities thanks to trend analysis or the possibility of better segmenting campaigns. In this way, AI can optimize the customer experience through chatbots by reducing human errors and resolving incidents more quickly. As for online sales, part of the functions provided by AI is the optimization of product search results through intelligent recommendations adapted to customer needs. In addition to all this, this intelligence enables improved decision making thanks to the analysis it can perform based on financial, administrative and commercial data.

In short, online commerce should take advantage of the solutions offered by artificial intelligence to increase sales while improving the customer experience.

Main advantages of implementing AI in business

Analyze lead and customer behavior

Artificial intelligence software can review a large amount of data, classify it, hierarchize it, cross-reference it and identify patterns and variables to make predictions. This information can help us to understand how our customers behave in their buying process. In addition, we can adapt our marketing campaigns based on this information to increase profitability.

Performs demand and marketing forecasting

AI helps to understand customer behaviors and trends. In turn, this enables retailers to improve demand forecasting and make better pricing and in-stock decisions.

Improves customer experience

The use of AI makes it possible to address customer service in a faster and more efficient way. One of the solutions offered by this technology is the use of chatbots that, through natural language processing, are able to hold conversations with users and solve their problems. Another solution provided by artificial intelligence is that it can create personalized business experiences by simplifying certain activities.

Automate processes

It can help to perform a series of tasks in an automated way. In addition, it allows you to schedule these tasks, saving time and resources that can be invested in other processes that need them.

Recommendations for the implementation of artificial intelligence

Finally, in order to make the most of all the opportunities offered by this technology, here are some considerations you should take into account when implementing it:

• It is highly advisable to have an advisor or expert in artificial intelligence.
• We must take into account that the investment we make in artificial intelligence can bring us a greater return in terms of economic and human resources. For this reason, it is important to allocate part of our budget for investment in AI tools.
• It is essential to keep up to date with the latest developments in artificial intelligence and dedicate some time to R&D&I in order to obtain a differential value that will allow us to distinguish ourselves from the rest of the competitors in the market.
• We must try to get the most out of the existing applications that we are going to implement in our business.