AI

AI in omnichannel retail: How technology is shaping consumer behavior

The role of AI is not only to act as a tool but also to mark a complete revolution in the omnichannel space. Streamlining the processes and amplifying personalization ultimately empowers AI to present seamless experiences and helps meet customer expectations accurately.

Photo: Generated by AI. Adobe Stock.

March 6, 2025 by Divya Valsala Saratchandran

In today's hyper-connected world, customers look for seamlessly integrated experiences on any platform-online, mobile, or even within a brick-and-mortar environment. The revolution of Artificial Intelligence is currently helping them to achieve that through highly and smarter integrated omnichannel strategies.

AI bridges the gap between online and offline methods, and allows retail brands to stay competitive in an ever-changing marketplace.

Here's how AI can potentially take over the omnichannel space:

1. Personalized customer journeys

During old times, there were no technologies to support pattern identification or trends of customer transactions. The AI solution being developed will feed on data, by analyzing customer behavior across platforms, and it's able to create journeys that feel highly personalized especially during peak seasons.

Irrespective of whether customers browse products on their smartphones or coming directly to store, AI makes the experience go personal.For example, AI may make a product recommendation online that is based on purchases made in-store, creating a seamless mix of offline and online interactions.

2. Seamless channel integration

AI breaks down silos by synchronizing inventory, pricing, and customer data across all touch points. The integration of these components ensures a seamless experience for customers moving across these channels.

For example, a shopper adding items to their online cart and finding them ready for pickup in a store, with no discrepancies or challenges in pricing or availability. Most of the retailers already have BOPIS (Buy Online Pick in Store) implemented on their retail applications, and this integration could take the customer experience to the next level.

3. Voice and visual search
AI-powered tools, such as voice and visual search, let customers more easily discover products. Whether they upload a photo of a product they love or ask a voice assistant for suggestions, AI enables intuitive search options that make the shopping journey simpler.

For example, a shopper looking to buy a dining table can upload a picture of their interest, and there are sophisticated AI tools available to match the customer expectations, and provide multiple suggestions to pick the right product for them.

4. Real-time assistance

The foundation of omnichannel customer support is utilizing AI-powered chatbots and virtual assistants. They can assist the customers with product inquiries, troubleshooting, and even navigation within platforms 24/7.

This would certainly help corporates to reduce call waiting times for their helpdesk and thereby reducing operational costs and improve turnaround time for customer calls.

5. Predictive analytics and customer loyalty

AI doesn't just react-it predicts. By doing deep dive on customer data, AI can forecast buying behavior to help a business anticipate demand, personalize offers, and optimize inventory across all channels. For instance, AI can identify those customers who are likely to purchase a certain product and automatically trigger personalized email campaigns or ads to close the sale.

This works especially in grocery retailers where shoppers have a pattern of buying repeated items weekly, and these personalized ads or offers can help to retain customer loyalty.

6. Inventory optimization and supply chain

Inventory management can be a complex process in an omnichannel context. AI tools aids in demand forecasting and inventory management across channels to ensure customers always find exactly what they're looking for.

For example, AI can move stock from a low-performing location to an area of high demand, consequently minimizing waste while also guaranteeing increased customer satisfaction. This would help to direct shoppers to the appropriate store location that has more demand and stay ahead of the competition.

7. Integration of AR

With AI-driven augmented reality products in place, customers will get an idea of what certain merchandise will look like in their home or on their bodies. It can go from trying on virtual glasses to placing furniture in the living room technology boosts online and brick-and-mortar customer experience.

For example, if a customer is planning to buy a couch for the living room, they will get an augmented view of the look and feel on how it will be placed at his own house.

8. Fraud detection and security

AI is extremely crucial in making omnichannel transactions secure. It detects fraudulent activities much quicker by monitoring the patterns across channels and, hence, saves businesses and customers.

These real time monitoring mechanisms can avoid help security incidents and avoid situations of compromising sensitive data of the loyal customers

The future of omnichannel with AI

The role of AI is not only to act as a tool but also to mark a complete revolution in the omnichannel space. Thus, streamlining the processes and amplifying personalization ultimately empowers AI to present seamless experiences and helps enterprises to meet customers' expectations accurately.

As AI continues to evolve, it will only strengthen its position within the omnichannel journey, turning it into an essential tool for any brand seeking to stay competitive.

About Divya Valsala Saratchandran

Divya Valsala Saratchandran is an accomplished cloud/edge computing, and distributed computing professional with over 18-plus years of experience in architecting scalable solutions, implementing real-time systems, and modernizing point of sale platforms. Divya has helped several retail organizations to optimize operations and enhance customer experience. She is passionate about emerging technologies like AI driven solutions and machine learning. As a Technology Leader in retail space, she is instrumental in designing and architecting high-performing resilient solutions.

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