AI, Computer Vision, and Robotics to Deliver Long-Term ROI for Patient Brick and Mortar Retailers

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21 Jun 2018

Artificial Intelligence (AI), computer vision and robotics will ultimately enable retailers to provide frictionless customer experiences, streamline archaic processes, and increase diminishing product margins. Brick and mortar retailers can, therefore, improve their chances of remaining competitive if they employ these technologies correctly, prioritizing long-term ROI over short-sighted strategies, according to ABI Research, a market-foresight advisory firm providing strategic guidance on the most compelling transformative technologies.  

“The high-cost barrier associated with AI, computer vision and robotics will ultimately be overcome by the potential for these technologies to offset the inherent disadvantages facing physical stores today,” said Nick Finill, Senior Analyst at ABI Research.

In 2025, brick and mortar retailers will spend US$34 billion on AI technologies, up from US$4 billion in 2018. Computer vision will account for 29% of this spending. This is due to the technology’s ability to facilitate real-time inventory status reports, advanced customer analytics, and checkout-free retail models; all of which rely on AI-enabled cameras. ABI Research forecasts that over 44,000 checkout-free stores will have been deployed by 2023, with the Asia-Pacific home to the clear majority of these retail outlets. 

Robots will also be increasingly deployed by retailers wanting to improve customer support and manage inventory more efficiently and precisely. By 2025, 167,000 robots will be in operation in physical retail stores globally, most of which will be used to monitor shelves. These robots, offered by companies such as Simbe Robotics and Bossanova, will see widespread deployment in large format stores in regions with high labor costs and strong robotics initiatives, such as North America, Europe, and East Asia.

“In the store of the future, robots and computer vision cameras will essentially act as data-generating ‘eyes’, feeding an AI ‘brain’ which can proactively respond to stimuli and predict trends at the micro and macro level,” Finill added.

AI, computer vision and robotics, when integrated with a store’s wider network of information systems, represent enormous potential to retailers desperate for actionable insights, operational excellence, and satisfied customers within their physical stores. The retailers which can most effectively combine these advanced capabilities will see the greatest long-term ROI.

These findings are from ABI Research’s report AI, Computer Vision, and Robotics in Brick and Mortar Retail. This report is part of the company’s Smart Retail research service, which includes research, data, and Executive Foresights.

About ABI Research

ABI Research provides strategic guidance for visionaries needing market foresight on the most compelling transformative technologies, which reshape workforces, identify holes in a market, create new business models and drive new revenue streams. ABI’s own research visionaries take stances early on those technologies, publishing groundbreaking studies often years ahead of other technology advisory firms. ABI analysts deliver their conclusions and recommendations in easily and quickly absorbed formats to ensure proper context. Our analysts strategically guide visionaries to take action now and inspire their business to realize a bigger picture. For more information about ABI Research’s forecasting, consulting and teardown services, visionaries can contact us at +1.516.624.2500 in the Americas, +44.203.326.0140 in Europe, +65.6592.0290 in Asia-Pacific or visit www.abiresearch.com.

About ABI Research

ABI Research is a global technology intelligence firm uniquely positioned at the intersection of technology solution providers and end-market companies. We serve as the bridge that seamlessly connects these two segments by providing exclusive research and expert guidance to drive successful technology implementations and deliver strategies proven to attract and retain customers.

ABI Research 是一家全球性的技术情报公司,拥有得天独厚的优势,充当终端市场公司和技术解决方案提供商之间的桥梁,通过提供独家研究和专业性指导,推动成功的技术实施和提供经证明可吸引和留住客户的战略,无缝连接这两大主体。

For more information about ABI Research’s services, contact us at +1.516.624.2500 in the Americas, +44.203.326.0140 in Europe, +65.6592.0290 in Asia-Pacific, or visit www.abiresearch.com.

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