November 2024
What Drives AI– Consumer Demand
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HERE IS A LOT OF SPECULATION GOING ON REGARDING artificial intelligence. What is it? How will it affect me and my family? And what are the benefits or pitfalls? AI is a huge topic that will impact every aspect of our lives now and in the future. Retailers are in the business of forecasting and catering to the future needs of the consumer. In the not-too-distant past, that was a guessing game, with merchandising efforts left to managers who needed near-psychic abilities. Artificial intelligence is increasingly driven by consumer demand in the retail industry, shaping how retailers operate and interact with consumers. This transformation is due to the growing expectation for a personalized shopping experience, efficient service, calmness, and seamless interactions across various platforms. In recent years, there has been concern about what kind of information retailers were collecting on consumers and whether it would be weaponized or
By Mary Lau, RAN CEO
Mary Lau utilized inappropriately. Consumers today expect brands to understand their preferences and provide tailored experiences. Artificial intelligence enables retailers to analyze vast amounts of consumer data, such as browsing history, purchase patterns, and demographic information, to deliver personalized product recommendations and targeted marketing campaigns. For instance, companies like Amazon and Walmart use AI-driven recommendation engines to offer customized shopping experiences that enhance consumer satisfaction and loyalty. AI also plays a crucial role in demand
forecasting and inventory management, helping retailers anticipate customer needs more accurately. By analyzing historical sales data, market trends, and external factors like weather conditions, algorithms can predict future demand, enabling retailers to optimize inventory levels and reduce stockouts or overstocking. It’s not hard to recall how COVID-19 completely disrupted the supply chain, causing chaos at open retail outlets. All this information helps retailers better understand consumer demand in real time, ensuring that popular products are always available. Continued on page 2
INSIDE The State of the Retail Industry in Nevada.........................3 Nevada News...................4 National News..................5 2024 State of Retail.....6, 7 The Future of Grocery Delivery and Pickup.......................8 2024 State of Pharmacy.........................9