The Unchanging Importance of Location in the Era of AI-Driven Retail

**Using AI and Location Intelligence to Drive Retail Success**

In the ever-evolving world of retail, artificial intelligence (AI) has become more than just a robotic assistant; it has become a trusted colleague. AI silently works behind the scenes, analyzing vast amounts of data and providing valuable insights to retailers. With its ability to detect patterns and make predictions, AI has helped retailers in managing inventory, understanding customer behavior, and setting prices. However, its potential is far from being fully realized. By utilizing location intelligence, AI can help retailers detect disruptions and anticipate product demand, enabling them to seize opportunities and deliver what customers want, when and where they want it.

**AI and Location Intelligence: A Game-Changer for Retailers**

According to a survey by Retail Systems Research, more than 70 percent of the leading omnichannel retailers believe that AI-enabled analytics will fundamentally change how they forecast customer demand and make merchandise plans in the next three years. Retailers are increasingly using AI to analyze non-transactional data quickly and derive valuable insights from it. By combining AI with location intelligence from geographic information system technology (GIS), retailers gain a contextual understanding of their data specific to each store and warehouse. This allows them to make localized decisions and tailor their product assortment, presentation, price, and promotions to the preferences and behaviors of local shoppers.

**Enhancing Customer Understanding through AI Analytics**

AI analytics are enabling retailers to gain a deeper understanding of their customers and personalize their shopping experience. By analyzing customer intent, retailers can present relevant product recommendations while customers are browsing in-store. For example, if a customer is in the baking section and picks up an item, AI can suggest other products that complement that item. In the future, retailers aim to push messages to consumers based on their stated or implied interests while they are in the store, creating a highly personalized and targeted shopping experience.

**The Role of Location in AI-Driven Retail Operations**

Location plays a crucial role in the success of AI-driven retail operations. Retailers need to anticipate customer demand and model various scenarios to respond quickly to changes in demand. With the help of location intelligence, retailers can visualize and predict when and where demand will spike. By creating digital twins or virtual representations of the real world, retailers can understand the flow of goods and detect supply or demand disruptions at an early stage. Location data allows retailers to identify the reasons behind disruptions, such as geopolitical factors, weather conditions, or manufacturing delays. Armed with this information, retailers can take corrective action and find alternate sources and products, or strategically move products where they are most likely to be sold.

**The Power of AI and Location Intelligence Combined**

When AI is paired with location intelligence, retailers gain even deeper insights into their data. They can disrupt-proof their supply chain by understanding the flow of goods in relation to their current location and the locations of customers in need. For example, AI can detect unexpected correlations between seemingly unrelated products, such as the famous discovery in the 1980s that sales of disposable diapers were correlated with beer sales. By leveraging AI and location intelligence, retailers can make predictions about consumer behavior and optimize their product offerings, pricing, and promotions accordingly.


In conclusion, AI and location intelligence are transforming the way retailers operate. By harnessing the power of AI analytics and combining it with location intelligence, retailers can gain valuable insights into customer behavior, optimize their supply chain, and provide personalized shopping experiences. The future of retail lies in the ability to leverage AI and location intelligence to drive success in an increasingly competitive industry.

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