AI is helping retailers in retail industry. The retail industry has always been vulnerable to losses from various sources, including theft, fraud, and operational errors. According to the National Retail Federation (NRF), retailers lose billions of dollars every year due to shrinkage, which is the loss of inventory through theft, damage, or error. In recent years, retailers have increasingly turned to artificial intelligence (AI) to help address this problem. In this essay, we will explore how AI is helping retailers with loss prevention, specifically at the NRF 2023 conference.
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Using AI for Video Analytics
One of the key ways that AI is helping retailers with loss prevention is through video analytics. AI-powered video analytics software can monitor video feeds from security cameras and automatically detect and alert security personnel to suspicious behavior, such as shoplifting or fraudulent transactions. This technology can also track patterns of behavior over time and provide insights into potential vulnerabilities or areas for improvement.
At NRF 2023, companies such as Axis Communications and Cisco Systems showcased their AI-powered video analytics solutions. Axis Communications demonstrated its AXIS Object Analytics software, which uses AI and machine learning algorithms to analyze video feeds and identify specific objects, such as shopping carts or bags, that may be involved in suspicious behavior. Cisco Systems demonstrated its Video Intelligence platform, which uses AI and machine learning algorithms to analyze video feeds and detect potential security threats.
Using AI for Fraud Detection
Another way that AI is helping retailers with loss prevention is through fraud detection. Retailers are increasingly using AI-powered fraud detection tools to identify and prevent fraudulent transactions, which can be a significant source of losses. AI-powered fraud detection tools can analyze large volumes of transaction data in real-time and identify patterns of behavior that may indicate fraudulent activity, such as unusual purchase amounts or shipping addresses.
At NRF 2023, companies such as Signifyd and Riskified showcased their AI-powered fraud detection solutions. Signifyd demonstrated its AI-powered fraud detection platform, which uses machine learning algorithms to analyze transaction data and detect potential fraud in real-time. Riskified demonstrated its fraud prevention platform, which uses AI and machine learning algorithms to analyze transaction data and provide a risk score for each transaction, helping retailers identify and prevent fraudulent activity.
Using AI for Inventory Management
AI is helping retailers with loss prevention by improving inventory management. Retailers can use AI-powered inventory management tools to monitor inventory levels in real-time, detect discrepancies, and identify potential areas for losses, such as theft or damage. AI-powered inventory management tools can also help retailers optimize their inventory levels, reducing the risk of overstocking or stockouts.
At NRF 2023, companies such as IBM and Zebra Technologies showcased their AI-powered inventory management solutions. IBM demonstrated its Watson Supply Chain Insights platform, which uses AI and machine learning algorithms to monitor inventory levels, identify potential issues, and provide recommendations for improving inventory management. Zebra Technologies demonstrated its SmartSight platform, which uses AI and machine learning algorithms to monitor inventory levels and provide real-time alerts for potential issues, such as low stock levels or misplaced items.
Using AI for Predictive Analytics
Finally, AI is helping retailers with loss prevention through predictive analytics. Retailers can use AI-powered predictive analytics tools to analyze large volumes of data, including transaction data, customer data, and external data sources, to identify patterns of behavior that may indicate potential losses. AI-powered predictive analytics tools can also provide insights into potential areas for improvement, helping retailers take proactive measures to prevent losses
At NRF 2023, companies such as Blue Yonder and Salesforce demonstrated their AI-powered predictive analytics solutions. Blue Yonder demonstrated its AI-powered supply chain platform, which uses predictive analytics to identify potential supply chain disruptions and provide recommendations for mitigating risks. Salesforce demonstrated its AI-powered analytics platform, which uses machine learning algorithms to analyze customer data and provide insights into potential areas for improvement.