Grocery retailers are set to undergo a transformation with the help of artificial intelligence (AI).
Retailers and supermarkets are turning to robots to manage inventory and improve customer experiences, while platforms like Instacart are using AI to personalize recommendations for shoppers.
The move aims to boost sales, relieve workers from mundane tasks, and respond to the ongoing labor shortage.
Autonomous Inventory Robots Aid Big-Box Stores
Retailers and supermarkets are adding robots to their store aisles to address inventory challenges. Equipped with sensors and cameras, autonomous inventory robots can confirm prices and identify items that are not in stock.
According to CNBC, big box stores like BJ's Wholesale and Walmart-owned Sam's Club have deployed these robots to manage inventory.
Inventory management is a significant challenge for retailers. In 2021, missed sales from empty shelves and out-of-stock items will cost U.S. retailers $82 billion. Companies like Bossa Nova Robotics, Brain Corp., and Simbe Robotics are at the forefront of the inventory robot market.
Instacart to Launch 'Ask Instacart' Feature
Furthermore, Modern Retail reported that Instacart, a grocery delivery platform, has revealed that it is collaborating with Open AI to create a new feature called 'Ask Instacart.' This tool is set to launch later in the year and will enable customers to inquire about budget, health, nutrition, and preparation time while they create their grocery lists.
According to an Instacart spokesperson, the 'Ask Instacart' idea emerged from a new internal team set up to understand how ChatGPT, an AI language model, can serve customer needs better. The feature is expected to improve the shopping experience by offering personalized recommendations based on shoppers' preferences.
ChatGPT and Generative AI in Grocery
French grocery chain Carrefour has already produced its first-ever video made with ChatGPT answering frequently asked questions (FAQs).
The video is half a minute long and showcases a robot using the French language to respond to frequently asked questions from customers, such as ways to eat healthier and more affordably, through the company's website.
Elodie Perthuisot, the Chief E-commerce Officer of Carrefour, mentioned in a LinkedIn post that the company's innovation and data teams are currently investigating the potential application of generative AI and ChatGPT.
While all types of retailers are excited about using ChatGPT and generative AI, grocers have compelling reasons to adopt the technology. Grocers have among the most diverse customer bases, with enormous product catalogs.
As per Data Science Central, AI can help them personalize content and recommend products based on customers' preferences, dietary restrictions, and budgets. This, in turn, could lead to increased sales for grocers. The grocery retail industry can benefit from using AI, particularly in managing stores.
With the aid of AI-powered robots equipped with cameras and sensors, store products and shelves can be analyzed to gather data on inventory, pricing, and the execution of promotional plans.
This automation can reduce staff workload, giving them more time to assist customers. In addition, the robots can also help with inventory management, avoiding out-of-stock situations and similar issues. This has the potential to improve the in-store experience and boost customer satisfaction, leading to higher sales.
Moreover, the technology assists in understanding customer needs and drivers, enabling companies to segment customers based on various factors and providing them with better information about their target customers and their brand preferences.
The use of AI in grocery retail is poised to revolutionize the industry. As technology advances, retailers and grocers are likely to rely more heavily on AI to improve the customer experience and increase sales.
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