How do retailers implement AI?

Partnering with experts

In order to successfully implement AI in retail, Miya suggests partnering with experts is the most important thing for retailers to consider. She explains that experts experienced in machine learning can guide retailers to 

• understand the data available
• introduce new data sources
• build AI engines to inform decisions that can drive efficiencies throughout the business.  

Reducing dependency/The need to diversify

One of the key advantages of AI for retailers is the visibility and agility it provides over the complete supply chain. Over the past few years we’ve seen a lot of disruption to supply chains, so Miya advises retailers to diversify and decouple their supply chains to not have so many single points of failure.  “If you're dealing with many more suppliers scattered across the globe, managing those and seeing the performance of those, understanding any anomalies or any interruptions to service, are the kinds of things that AI engines are going to be really important to surface to management going forward. 

The digital-first advantage

When it comes to the adoption of AI in retail, Miya believes there is a difference between traditional store-based retailers and e-commerce pure-play retailers, with e-commerce pure-play retailers having a first-mover advantage.  “Because the e-commerce pure-play retailers were digital first, they already had to have a real understanding of how to use their data to run their business better,” says Miya. But that doesn’t mean store-based and omni-channel retailers will be completely left behind. “I suggest they have an operational edge when it comes to selling to us as consumers. We trust them more. We see them on the High Street, we see them online and we know that if we buy from them online we can collect it in-store, or we can return it in-store, they’re just more convenient to deal with”. 

AI optimisation

Miya advises store-based retailers to start thinking about their physical sales estate in the same way that e-commerce players have thought about their warehouses. AI engines should be used to optimise how retailers run their stores and back-office supply chain capabilities. When looking to the future, Miya says “I believe that’s where we are heading in the long-term, that there won’t be a difference between the two - that online will converge with store and store will converge with online”.