PSFK’s AI Retail Playbook, a Microsoft collaboration, explores how artificial intelligence enables personalized and dynamic consumer interactions

Consumer expectations for speed and high-quality service keep rising—so what can retailers do to maintain a competitive edge? The next retail paradigm shift will see offline and online shopping converge into a single, seamless channel. Retailers of all sizes need to be one step ahead of their customers’ needs and their competitors’ next innovation, requiring a digital transformation powered by artificial intelligence.

PSFK’s AI Retail Playbook, a collaboration with Microsoft, provides a framework for AI’s integration into the retail experience. Below, we break down some of the key trends retailers can act on in the AI space and narrate a scenario that highlights the process of building comprehensive, informed shopper profiles with AI.

Personalize the storefront for every customer. 
AI-powered retail spaces recognize shoppers and adapt in-store product displays, pricing and service through biometric recognition to reflect customer’ profiles, loyalty accounts or unlocked rewards and promotions—creating a custom shopping experience for each visitor, at scale.

Guide discovery based on the shopper’s needs and preferences. 
As customers to look to build confidence in a purchase decision, automated assistants can help narrow down the selection by recommending products based on shoppers’ needs, preferences and fit.  

Capture emotional responses and act accordingly. 
By recognizing and interpreting facial, biometric and audial cues, AI interfaces can identity shoppers’ in-the-moment emotions, reactions or mindset and deliver appropriate products, recommendations or support—ensuring that a retail engagement doesn’t miss its mark.

Extend dynamic consumer outreach based on real-time information. 
Advanced CRM and marketing systems learn a consumer’s behaviors and preferences through repeated interactions to develop a detailed shopper profile and utilize this information to deliver proactive and personalized outbound marketing—tailored recommendations, rewards or content.

Respond to customer feedback with R&D. 
Deep learning algorithms collect and interpret customer feedback and sentiment, as well as purchasing data, to support generation-generation product and service designs that better satisfy customer preference or fulfill unmet needs in the marketplace.

Here’s a possible scenario:

As Anton’s example conveys, artificial intelligence translates the personalized convenience of online shopping to physical retail, instantaneously refining product recommendations and rewarding customer loyalty. AI supports in-store associates by putting at hand all of the information they need for each individual customer. The result is a comprehensive view of shopper behavior for retailers and a seamless experience for customers, regardless of the retail channel.

The AI Retail Playbook, presented in partnership with Microsoft, outlines a new vision for the retail experience—heavily personalized, proactive service that uses the power of artificial intelligence to place the customer at the center of operations. Download the free report here.


Lead Image: Young man choosing jacket via Shutterstock

Consumer expectations for speed and high-quality service keep rising—so what can retailers do to maintain a competitive edge? The next retail paradigm shift will see offline and online shopping converge into a single, seamless channel. Retailers of all sizes need to be one step ahead of their customers’ needs and their competitors’ next innovation, requiring a digital transformation powered by artificial intelligence.

PSFK’s AI Retail Playbook, a collaboration with Microsoft, provides a framework for AI’s integration into the retail experience. Below, we break down some of the key trends retailers can act on in the AI space and narrate a scenario that highlights the process of building comprehensive, informed shopper profiles with AI.