The retail industry is on the brink of a major revolution thanks to the advancements in artificial intelligence (AI) and chatbot technology. A recent report by UK-based firm Juniper Research reveals some thrilling prospects for the future of retail, highlighting the increasing use of AI and chatbots in the industry.
According to the report, the number of successful retail interactions through chatbots is expected to skyrocket by 8.5 times, reaching a staggering 22 billion operations by 2023. This is a significant jump from the projected 2.6 billion for 2019. The exponential growth can be attributed to the rising demand of young consumers for brand interactions and the improved ease of use. Chatbots are now seamlessly integrating into more optimized service and e-commerce platforms, providing users with enhanced experiences. Thanks to advancements in big data and natural language processing, these chatbots have become more sophisticated in understanding and catering to consumer needs.
In addition to the increase in interactions, the report also predicts a 98% growth in sales directly driven by chatbot interactions by 2023, generating a revenue of $112 billion. While chatbots play a crucial role in omnichannel strategies and marketing automation scenarios, such as reminders for abandoned shopping carts, it’s important to emphasize that they should not be seen as a new channel, but rather as a tool to optimize existing channels.
Furthermore, the use of chatbots in customer service has the potential to significantly reduce costs, with the report estimating a potential cost reduction of around $439 million by 2023. However, this doesn’t mean that human advisors will be completely replaced by digital assistants. Experts understand that AI is an extension of human capabilities, and human interaction remains vital in the retail industry, especially in the luxury segment. Gucci, for example, recognizes the importance of human touch and has opened six call centers offering personalized and unlimited conversations, adding a new dimension to their e-commerce site.
The future of retail undoubtedly lies in the hands of AI and chatbots. Brands must adapt and harness this technology to stay ahead in the competitive retail landscape. Chatbots have the potential to elevate customer experiences, optimize existing channels, and ultimately drive sales. While they may never completely replace human advisors, they possess the power to revolutionize the industry and improve overall efficiency.
Useful links:
– How AI is Future-Proofing Customer Service in Retail
– Retailers Increase Spending on AI but Face Poor Return on Investment, According to New Research
