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Digital transformation, artificial intelligence, and the future of retail: how your business can go beyond the hype

Hype is a concept used by marketing teams to refer to intense, short-term promotional actions for a product or service, focused on trending topics at a given moment. While digital technologies are essential, recent innovations like artificial intelligence enable companies to plan practices that go far beyond hype.

In this sense, personalization in customer relationships is the major leap. ‘When we talk about digital transformation and the future of retail, today we must turn our attention to artificial intelligence. Will it replace people in some activities? Will we have stores without salespeople? Beyond these questions, we must understand how AI can contribute to the customer journey,’ says César Baleco, CEO of Grupo Irrah.

The organization specializes in technological products and solutions focused on retail. It includes e-commerce tools, store management, and automation of communication channels between retailers and customers—including AI-powered chatbots. It has been in the market for nearly 20 years, during which it has witnessed intense and rapid technological innovation. ‘Now, we see AI revolutionizing retail,’ he notes.

An example of AI-driven personalization in customer service is what may redefine the concept of stores. Whether physical or virtual, standardized service will give way to personalized interactions enabled by algorithms and increasingly deep, fast data analysis—’practically in real-time,’ as the expert highlights.

‘Purchase history, social media interactions, the words customers use in speech or searches, how they behave in-store—all this provides data for technology to deliver responses aligned with their specific personal preferences, satisfying their needs and desires,’ illustrates the CEO.

Thus, retail won’t just meet customer demands but also anticipate them. AI-driven data collection, storage, and analysis are expanding exponentially; the technology’s generative capability enables segmented, personalized, ‘tailor-made’ responses, in Baleco’s words.

The expert explains that retail stores will become as personalized as user profiles on streaming or music platforms, which already offer tailored menus of films and songs that not only match preferences but keep users engaged and loyal. ‘New releases, discounts, and promotions can be customized for each customer,’ he predicts.

Customer behavior in any given moment can also be understood—meaning AI tracks potential changes in taste or even the consumer’s mood during an interaction. ‘An AI chatbot detects shifts in tone caused by frustration over unmet needs, for example.’

Investing in technology providers offering an ecosystem of solutions (management, customer service, sales) becomes indispensable for retailers to achieve full digital transformation. After all, as Grupo Irrah’s CEO notes, segmented and personalized actions are useless if systems aren’t structurally prepared to handle demands and workflows when customers proceed in their journey.

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