AI Is Changing The Face Of Retail
By Doug Bannister
February 14, 2018
Digital signage is now a familiar site in the modern world. From displaying menus at restaurants to offering directions in a building, digital signage dynamically feeds audiences information. But how much more valuable could this channel be? Can digital signage take on a role to personalise messages or respond to a situation in real-time? Yes, with help from artificial intelligence (AI) and deep learning.
DEEP LEARNING TURNS DATA INTO ACTION
With deep learning, AI-driven platforms evaluate large data sets, typically in real-time, leading to specific reactions. AI engines have access to vast amounts of data. Data, of course, isn’t any good unless it’s analysed and delivers an actionable response. AI is all about automation. It doesn’t necessarily “think” for you. What it can do is draw conclusions, find patterns, and react to situations. The platform can “learn” over time, making it an even more valuable tool. So, what does the future of digital signage look like with a boost from AI and deep learning?
PERSONALIZED EXPERIENCES
Every customer wants to feel important and have a personalised experience. AI and deep learning are the tools to make it happen. Soon, digital signage platforms, powered by AI and deep learning, could actually recognise customers.
Just like local stores once new all their customers’ names, digital signage could act as a greeter. The digital signage could recognise the customer, say hello, and offer them useful information like what’s on sale, based on the customer’s buying history. While an amazing fete of technology, organisations should present this as a way to personalize what you see, becoming a benefit rather than a privacy concern.
MORE RELEVANT CONTENT
In-store shopping continues to decline in favour of online shopping. That means retailers need to create experiences for shoppers who visit their brick-and-mortar stores. Many have already been using digital signage to promote sales or offer customers an in-depth look at products. AI can take it to the next level with personalisation. A business already has historical data on its customers and their behaviours. Specific content is already created that plays at certain times or days. That’s the baseline that informs what content these consumers would most want to see.
With AI and deep learning, there are two ways to improve content: either by putting the data in context or creating personalised ads.
With context, the system is already starting with known behaviours like an increase in purchases of sunglasses after sunny days. But that won’t always be true. Deep learning adds context to this “rule” by capturing and integrating content that informs the situation. Maybe it’s a rainy day, which the system could detect with weather data. Or, the store knows, via sensors, that no one is shopping for sunglasses. This “learning” allows for the signage to “overrule” the sunglasses promo, switching it to items shoppers were currently looking at or umbrellas.
Deep learning by an AI platform enables targeting down to the individual. If a male shopper enters a clothing store, digital signage could detect that the shopper was in his 20s wearing hiking boots. The system takes this information then reviews what items are in stock or on sale that men who purchased hiking boots also bought. What it finds could then be communicated to the shopper in almost real-time. Not only is the customer seeing the personalised information it will prompt them to look at these items and make more purchases.
HOW WILL AI EVOLVE YOUR DIGITAL SIGNAGE?
The investment in digital signage and AI will continue to grow. The global digital signage market is expected to grow to $31.71 billion by 2025. [1] While the AI market is predicted to rise to nearly $60 billion by 2025. [2] These sectors are seeing phenomenal growth, which means organisations all over the world are investing in them to deliver better results.
Intelligent digital communications are changing the world. Are you ready to be a part of it?
[1] https://www.grandviewresearch.com/press-release/global-digital-signage-m…
[2] https://www.statista.com/statistics/607716/worldwide-artificial-intellig…
CHIEF EXECUTIVE OFFICER & CHIEF TECHNOLOGY OFFICER
Doug is Chief Executive Officer and Chief Technology Officer of Omnivex Corporation.
Doug is considered by many as a visionary in the digital signage space. In his role as CEO and CTO Doug is responsible for the long term product architecture and the overall vision for the company. He has always maintained direct responsibility for the architecture of the software to ensure the product remains at the forefront of the industry. Combined with his vision, leadership and experience as an entrepreneur in the LED sign market, Doug has used his understanding of customer requirements and knowledge of technology to create one of the leading software solutions for the digital signage industry.