Retail Leader - May/June 2018 - S3

AI's Growth

Machine learning first became a scientific
discipline in the late 1990s. But it did not
seriously take off until the 2000s. Growth was
fueled by access to huge amounts of real time
Big Data and the emergence of algorithms
that make sense of that data for productive
output. AI is continuing to grow, touching more
industries and functions every day.

in recent years, e-commerce has reached new
heights by using machine learning to make
functions more comprehensive and specific.
User choices and information can be crossreferenced in numerous ways. Customers can
locate merchandise faster, more products
are sold per transaction and there are fewer
abandoned carts.

To date, much AI retail activity has revolved
around machine learning in e-commerce,
particularly for search analysis, product
recommendations, promotions and analyzing
consumer sentiments. Amazon is regarded
as a pioneer here, and it is widely estimated
that 25% of its sales are generated through
recommendation-based product views and
previous purchases. Today, Amazon is even
marketing its easy-to-use, highly scalable search
and other machine learning technologies to
outside parties.

Now, retailers and suppliers are applying AI to
areas outside e-commerce. Demand forecasting
that incorporates machine learning, for
example, allows online and offline retailers to
generate more precise forecasts than traditional
time series approaches. Machine learning also
facilitates warehouse management by helping to
alleviate the over- and understocking scenarios
that can erode a retailer's bottom line. When
applied to trade promotions management,
AI could help suppliers improve timing,
tracking and other aspects of retail marketing
investments.

Other e-commerce companies have used search
and recommendation tools for some time. But

 etail and consumer goods
R
are among the top five
industries in which AI is
being applied1.
 2017, the global AI
In
market was estimated at
$2.4 billion. It is expected to
grow at a CAGR of 50% to
over $59 billion by 20252.
 4% of CIOs plan to invest
6
significantly in cognitive or
AI technologies over the
next two years3.
 y 2030, AI will drive
B
Global GDP gains of
$15.7 trillion (14% higher)
through productivity
and personalization
improvements4.

1
2

3

PWC 2017 data
Statista

3
4

 eloitte's 2016 Global CIO survey
D
PWC 2017 data

NLP is also making inroads by providing
conversational answers in areas including
category management through deep analytics,
data mining and visualization at department,
planogram and product levels.



Table of Contents for the Digital Edition of Retail Leader - May/June 2018

Contents
Retail Leader - May/June 2018 - Cover1
Retail Leader - May/June 2018 - Cover2
Retail Leader - May/June 2018 - 3
Retail Leader - May/June 2018 - Contents
Retail Leader - May/June 2018 - 5
Retail Leader - May/June 2018 - 6
Retail Leader - May/June 2018 - 7
Retail Leader - May/June 2018 - 8
Retail Leader - May/June 2018 - 9
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Retail Leader - May/June 2018 - 18
Retail Leader - May/June 2018 - S1
Retail Leader - May/June 2018 - S2
Retail Leader - May/June 2018 - S3
Retail Leader - May/June 2018 - S4
Retail Leader - May/June 2018 - S5
Retail Leader - May/June 2018 - S6
Retail Leader - May/June 2018 - S7
Retail Leader - May/June 2018 - S8
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Retail Leader - May/June 2018 - Cover3
Retail Leader - May/June 2018 - Cover4
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