The retail industry holds influence above many others. It’s almost always the first to embrace new waves of innovation, test and deploy new technologies, and integrate them into their businesses to create new, dynamic experiences to benefit customers, employees and ultimately — ROI.
This has never been more apparent than now, as consumers look to elevate their in-store shopping experiences and expect the same versatility and ease that they have obtained with modern omnichannel retail. That includes curbside pickup for online orders, checking for stock to optimize shopping trips and more. Consumers want to be part of an in-store experience that allows them a personalized, agile and enjoyable shopping experience in store.
Vision AI is becoming more central to creating that retail experience consumers desire. This cutting-edge technology is capable of understanding and analyzing its environment, to support retailers by making the most of their resources and ultimately improving the overall experience for shoppers and employees. We’re seeing vision AI support across all parts of the retail business, including back of house, in-store advertising and media, store checkout and curbside pickup.
Likewise, the retail industry is in a unique place to transform with a mindfulness around privacy. Many shoppers are becoming increasingly interested in choosing ethical brands and caring about how their data is captured and used. The beauty with vision AI and sensing technologies is in the insights that can be drawn without the need for personally identifiable data or images. Anonymity and ROI are now feasible for quite possibly the first time in this significant a way for retailers. Being able to run this technology on the edge will create maximal impact for retailers who want to keep their cloud lean and preserve privacy for their shoppers.
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What’s Catching a Shoppers Eye
In-store advertisements and displays are a prime example of how vision AI can be used in stores. For instance, 7-Eleven stores in Japan recently deployed vision AI to understand how in-store media is being consumed and acted on by their shoppers. In its deployment, 7-Eleven stores are using edge-enabled devices, smaller than the palm of a hand, to sense whether shoppers are interacting with ad displays.
Those devices then send out the information as metadata and correlate that information with purchases made of the product. All of this is processed on the edge and eliminates the need for mountains of visual data to be transmitted to the cloud. Additionally, this reduces cloud costs and improves ad traction and purchases, while also taking privacy factors into account.
With advertisements played on a loop or schedule, 7-Eleven can understand which ads customers watch the longest, thus determining which ads are most effective and informative for their customers and which advertisements may need to be adjusted or reformatted.
While 7-Eleven is at the forefront of inventive uses for vision AI in the convenience retail market, we are also observing interest and adoption of vision AI for supermarket retailers for resource reallocation, to mirror each store’s unique ebb and flow of operations and foot traffic throughout the day.
From the Warehouse to the Consumer
Not only are retailers and supermarkets able to use vision AI in front-of-house operations, for example to be aware of increasing lines and reallocate staff to checkout, or the reverse, but the demand for vision AI also translates to the back-of-house operations as well as in distribution centers and warehouses.
With the continual rise of omnichannel and the modern routine built around online shopping, many retailers and distribution centers are finding it challenging to track their inbound shipments and inventory. Likewise, very few in these centers are technology experts. They need the ability to install and have optimally running tech solutions that require minimal maintenance, which deploying at the edge can support. As a result, they are organizing the back-of-house environment in an efficient way that allows them to fulfill orders efficiently and accurately.
Vision AI is supporting the retail industry in this way, too. For example, on shopping channels with multiple distributors, sellers may be deprioritized on the site for overselling or shipping incorrect items.
Vision AI supports warehouses and retailers by helping them understand what inventory exists and where in the stockroom or warehouse it is, and offers stockers, pickers and packers more-efficient routes to pull and pack orders. We’re even seeing vision AI support these warehouses with receiving. By deploying vision AI on aisles and in berth loading zones, inbound trucks see less of a wait time to drop off orders, as warehouse staff are properly allocated, and organizational improvements are made that ensure a space is readied for inbound loads. This ensures that like items are not stored randomly across a warehouse and allows retailers to accurately manage inventory.
Vision AI is Here to Stay
But all vision AI is different. It is important to understand the needs of your business, the demands of your customers and the budget and timelines you will need to create an impact and see true ROI. How you deploy vision AI, adopting edge technologies or not, will also impact overall ROI.
All this is to say that vision AI will be more than a trend, especially given how much can be achieved with it. In our conversations with retailers, many have identified vision-based solutions as a long-haul, adaptable technology that’s deployable at scale due to its affordability and is retrainable as business needs evolve.
Overall, vision AI can be deployed on a much larger scale than other similar solutions today, granting clearer visibility across an entire corporation in ways that have not been possible until now. The crystal ball has never sensed a brighter retail future.
Eita Yanagisawa is Senior General Manager of the Systems Solutions Business Division at Sony Semiconductor Solutions Corporation (SSS), where he oversees semiconductor business and AITRIOS™, Sony’s edge and vision AI sensing platform for industries. Leading a cross-functional team of engineers, business developers, marketers and beyond, Yanagisawa sits below Terushi Shimizu, President and Chief Executive Officer of SSS. Since joining Sony Group Corporation in 2005, Yanagisawa has played an integral role in SSS’s business, overseeing the launch of Sony’s sensing device business and leading M&A and alliance deals. In his spare time, Yanagisawa enjoys playing golf, basketball and spending time with family.
