Retail insights: AI, at your service

The retail industry is undergoing a radical transformation, driven by advancements in artificial intelligence (AI) and big data. Over the past two decades, I’ve seen first-hand how data is one of retail’s most powerful tools when it is properly analysed.

In recent years I’ve had the privilege to witness firsthand how AI-driven platforms are fundamentally changing the way retailers interact with customers and manage their operations. This is not just about automating processes; it’s about understanding customers on a deeper level, predicting their needs, and responding in real-time to create a completely new shopping experience.

Personalisation for every customer

The retail landscape has never been more competitive. Consumers today expect personalised experiences, seamless omnichannel interactions, and the convenience of shopping when, where, and how they want. It’s no surprise that technology solutions have been created to meet this considerable gap in the customer experience.

Retailers are now able to meet — and exceed — more expectations than ever. By leveraging AI and big data, technology is enabling retailers to not only understand what customers want but to anticipate their needs, often before they even realise them.

Unlocking customer insights

At its core, AI in retail is about understanding people. By analysing patterns in data, we can gain insights into customer behaviour, preferences, and even emotions. For instance, predictive analytics capabilities can determine when a customer is likely to make a purchase and what factors may influence that decision. This goes beyond simple product recommendations — it’s about understanding the “why” behind each customer’s actions.

Retailers need to increasingly identify very specific things about their audience. As an illustrative example, let’s say that a segment of customers shows a strong preference for eco-friendly products. This insight prompts the retailer to adjust their inventory, increasing the availability of sustainable products and implementing targeted marketing campaigns that emphasise their commitment to the environment. Campaigns such as this can enhance customer loyalty and higher sales in that product category.

Furthermore, with AI-driven insights, retailers can identify patterns that would otherwise be difficult, if not impossible, to spot. Seasonal buying patterns, regional preferences, and even time-of-day shopping habits all contribute to a more holistic understanding of the customer. Armed with these insights, retailers can adjust their offerings in real-time, ensuring that customers have access to the products they want, precisely when they want them.

RetailGPT: More than just AI

Leading a company with more than two decades of delivering data-powered insights to global retail clients, Pathfinder Global’s revolutionary RetailGPT technology is more than just another AI tool — it’s an intelligent platform designed to address the multifaceted needs of modern retail businesses. Traditional data systems could provide insights into sales and basic customer demographics, but today’s retailers require something far more sophisticated.

RetailGPT takes AI’s power a step further, utilising machine learning algorithms that analyse massive data sets in real-time, from purchasing habits and product preferences to social media sentiment and location-based trends.

Deeper understanding allows retailers to tailor their product offerings and marketing strategies with unprecedented precision. Imagine knowing that a customer visiting your store has a preference for a specific product category, colour, or brand. RetailGPT empowers sales teams and store associates with this knowledge so they can create personalised shopping experiences for each visitor.

AI is the future of retail

AI allows us to analyse information across multiple channels—online, in-store, and mobile — creating a seamless omnichannel experience that’s critical in today’s market. Its applications are exciting. Today, we already have AI-powered cameras and image recognition systems that can monitor store shelves to ensure stock availability, track inventory, and analyse shopper behaviour. Visual AI can also enhance security and loss prevention by detecting unusual activities in real-time. AI-driven robots in warehouses can efficiently pick, pack, and ship orders. In stores, robots can assist with tasks like shelf scanning and customer service.

AI algorithms can analyse historical sales data, weather patterns, and external events to predict demand trends and optimise inventory management. This minimises waste and ensures stock availability during peak demand periods.

Meanwhile, natural language processing (NLP)  enables chatbots and voice assistants to handle customer queries, assist with product recommendations, and offer support both online and in-store. It also powers sentiment analysis by monitoring social media and customer reviews to gauge public perception.

I believe that the future of retail lies in the seamless integration of AI and human insight. AI tools are incredible at identifying patterns and trends we might never notice. But their true power comes from pairing those insights with the creativity and intuition that only humans can bring to the table. Together, they create a customer experience that’s not just predictive but deeply personal.

As the retail industry faces constant shifts in consumer behaviour, tools like AI-powered analytics, recommendation engines, and customer sentiment analysis are no longer optional — they’re essential. Retailers who embrace these technologies won’t just keep up with their customers; they’ll anticipate their needs and exceed expectations.

The writer is the CEO of Pathfinder Global.