Artificial intelligence and machine learning (AI/ML) technologies are transforming businesses. In fact, the global annual spending on AI by retailers is estimated to reach $7.3 billion by 2022. However, along with this growth comes hype, uncertainty and questions around what AI/ML can really do for retailers today.
One thing, if anything, is certain: AI/ML in retail is here to stay.
For those of us who have been in retail a long time know this isn’t the first time data science was used to address retail business challenges. In the early 2000s, data science was applied to common problems within retail merchandising and the supply chain with mixed success. Markdowns were optimized, followed by statistical forecast-driven replenishment, then price and transportation optimization.Read More