Digital technology is an extremely disruptive factor for our modern world and for the way companies operate. The success of social networks, as well as the growing importance of platform businesses and e-commerce, would not be possible without digital technology. But people have already become accustomed to the existence and functioning of social media and amazon as a gigantic marketplace. How will new digital technologies and especially Artificial Intelligence (AI) change retail?
Table of Contents
1. INTRODUCTION
2. IMPACT AREAS OF NEW TECHNOLOGIES IN RETAILING
3. USE CASES OF ARTIFICIAL INTELLIGENCE: SCAN-AND-GO
4. FUTURE OUTLOOK: CONNECTING SERVICES
5. CONCLUSION
Objectives and Key Topics
This work examines the transformative impact of digital technologies and artificial intelligence on the retail sector, exploring how these innovations optimize backend processes and reshape the direct customer shopping experience.
- Digital transformation and disruption in modern retail
- Operational optimization through AI and data analytics
- Innovations in customer-facing technologies like Scan-and-Go
- Integration of personal health data and shopping services
- Balancing technological convenience with privacy concerns
Excerpt from the Book
Use Cases of Artificial Intelligence: Scan-and-go
While there have been a growing number of supermarkets with self-checkout counters for several years, Amazon has already taken the next step with its Amazon Go concept, offering scan-and-go. This means that customers check in by scanning a code with their cell phone when they enter the store, and sensors and cameras on the shelves automatically detect which products are placed in the shopping basket during the subsequent purchase. At the end of the shopping trip, the customer can leave the store without paying, as the bill is automatically paid by using the payment data stored in the Amazon account (Grewal et al., 2017). This approach requires error-free technology to correctly account for each payment transaction. For the customer, however, this creates a whole new form of convenience, which is becoming increasingly relevant in the growing range of online retail and express delivery services (Reynolds et al., 2007). Customers no longer must stand in line and can complete their shopping undisturbed. For retailers, however, the question is whether this will only have a positive impact on their sales. At the same time, more independent customers mean fewer interactions with sales advisors and thus also a change in the way customers interact with the brand. Customers who are more focused on themselves and receive less impetus from outside may buy less (Grewal et al., 2017).
Summary of Chapters
INTRODUCTION: This chapter introduces the disruptive nature of digital technology and sets the stage for investigating how Artificial Intelligence influences contemporary retail.
IMPACT AREAS OF NEW TECHNOLOGIES IN RETAILING: The chapter explores how AI and machine learning optimize supply chains, internal logistics, and customer services to enhance business efficiency.
USE CASES OF ARTIFICIAL INTELLIGENCE: SCAN-AND-GO: This section details specific applications like Amazon Go, highlighting the shift toward frictionless shopping while noting the potential impact on customer-brand interaction.
FUTURE OUTLOOK: CONNECTING SERVICES: The chapter discusses the potential for integrating additional personalized data, using the HealthMe app as a case study for future retail service layers.
CONCLUSION: The final chapter synthesizes the benefits of technological integration in retail while emphasizing the critical balance between convenience and data privacy.
Keywords
Artificial Intelligence, Retail, Digital Transformation, Scan-and-Go, Machine Learning, Supply Chain, Customer Experience, Personalization, Privacy, Data Security, Automation, E-commerce, Innovation, HealthMe, Retail Strategy
Frequently Asked Questions
What is the core focus of this publication?
The work investigates the disruptive influence of new digital technologies and Artificial Intelligence on the modern retail industry.
Which specific areas of retail are being examined?
The paper covers backend optimization, supply chain efficiency, customer-facing AI applications, and the personalization of shopping services.
What is the primary objective of the research?
The objective is to analyze how emerging technologies change business practices and customer interactions while weighing the benefits of innovation against privacy risks.
What scientific methodology is applied?
The study utilizes a review and analysis of existing literature and case examples (such as Amazon Go and HealthMe) to demonstrate trends in the retail sector.
What topics are explored in the main body?
The main body focuses on the impact of AI on internal processes, the development of Scan-and-Go technology, and the future integration of personalized service ecosystems.
Which key concepts define this work?
Central concepts include AI-driven retail, frictionless shopping, data-based personalization, and the balance between customer convenience and data privacy.
How does the Amazon Go concept change the traditional shopping experience?
It eliminates the need for checkout lines by using sensor and camera technology to track purchases, allowing customers to pay automatically via an account.
What is the significance of the HealthMe app mentioned in the text?
It serves as an example of how personal health data can be integrated into the shopping process to provide individualized, real-time product information.
What are the identified risks of high data usage in retail?
The primary risk is that consumers may feel uncomfortable or insecure regarding their privacy, which can counteract the perceived benefits of personalized services.
Why might increasing customer independence through AI negatively affect retailers?
Reduced interaction with sales staff may result in less external impetus for the customer, potentially leading to lower sales figures.
- Quote paper
- Lars Bucher (Author), 2021, New Technology in the Field of Retailing. Artificial Intelligence and the Concept of Scan-and-Go, Munich, GRIN Verlag, https://www.grin.com/document/1191419
