Application of AI intelligent video analysis technology in the retail industry

Artificial Intelligence (AI) has a close relationship with Data Science, which aims to extract business value from a collection of information. This value includes expanded predictive capabilities, knowledge of regularities, smarter decision making, reduced costs, etc. In other words, AI operates on large amounts of information, analyzes input data, and develops adaptive solutions based on this information.

In the modern world, the retail industry is rapidly increasing the use of artificial intelligence in all possible workflows. Therefore, leveraging opportunities through applied analytics can undoubtedly improve various operations in the retail industry. With the help of artificial intelligence, large supermarket chains are achieving ambitious goals such as improving and expanding customer service capabilities, automating supply chain planning and order delivery, reducing product waste, improving the management of out-of-stock and overstocking (grocery inventory shortages), and strengthening demand forecasting.

The AI ​​solution ecosystem is wide-ranging and able to meet most of the needs of all grocery retailers, from large chains to small businesses. So far, especially during the COVID-19 quarantine, online store analytics has become a real lifesaver in managing out-of-stock situations. With an intelligent, data-driven approach, supermarkets can process large amounts of information, accurately predict consumer demand and supply inventory, and generate the most accurate pricing and purchasing recommendations.

As a result, grocery retailers will not only survive, but will continue to generate profits even in the most dire situations, such as during the coronavirus pandemic. It is clear that all companies now need an immediate action plan for COVID-19. Typically, most retail stores have continuous video surveillance systems. Previously, such systems were installed for security purposes only: to protect the safety of products and prevent theft. But now, AI video analytics are able to monitor customers from the moment they enter the store to the moment they pay.

Big chains like Amazon and Walmart use high-tech cameras that use automatic object recognition (RFID). Typically, such systems are used in driverless electric vehicles to monitor passenger behavior and process the visual information through computers.

However, the main goal of video analysis in retail stores is to identify items that are in high demand, the shelves most frequented by buyers, etc. In addition, the cameras can perform facial recognition, determine the height, weight, age, and other physical characteristics of customers. Subsequently, AI (based on all acquired data) identifies the most popular products among a specific group of consumers and provides options to change pricing strategies. Computers perform all these processes automatically without human intervention.

Artificial intelligence in retail is able to solve problems that people cannot cope with. Experts point out that one person cannot actually watch all video surveillance. Because, there is not enough time to do this, and human vision is not perfect and easily fatigued, leading to mistakes. Video analysis in retail stores is perfectly prepared for such tasks. For example, connecting cameras to the store's automated warehouse system and equipping the shelves with sensors can detect gaps in inventory records and facilitate investigations. Retail store data analysis can also monitor inventory and provide signals about the need for replenishment. Facial recognition technology as mentioned above is able to compare the faces of criminals (or wanted persons) and alert security.

The data collected about customer behavior helps supermarket managers optimize store layouts. In addition, computer programs can design the most "optimal" layouts and test them, resulting in an overall better customer experience and increased monthly sales for the store.

Retail store AI systems can collect data about the number of people entering the store and how much time they spend shopping. Based on this data, AI can predict the size of the crowd and how long people will wait in line. This will help improve customer service and reduce costs. In other words, AI is able to develop the best store management plan at various hours of the day to bring the most benefits to the business.

Every business should understand its audience as well as possible to provide the best possible service. AI in retail stores uses video intelligence software to provide detailed demographic data and analyze shopping habits in detail. This information provides stores with endless opportunities to increase profits. By understanding their customers, store managers can maximize the customer's shopping experience and create favorable conditions (specifically targeting the customer's preferences). In addition, AI for retail stores can help produce the most accurate demand forecasting model for a given target market.

In addition to working with target audiences, managers can use the data obtained from video analysis to transfer information to the marketing department. By exploring other audiences, marketers can develop strategies to attract new customers by creating relevant ads, promotions, and sales. In addition, stores can create separate display cabinets (for vegan products or gluten-free products) for small shopping groups to meet their needs.

Of all the existing AI technologies for retail stores, video content analysis provides the greatest support in almost all activities: sales, marketing, advertising, and layout strategies. By optimizing these processes, stores can not only save and reduce losses, but also expand their business by increasing profits. The main goal is not only to meet customer needs, but also to increase customer retention.