Technological evolution, driven by the development of Artificial Intelligence (AI) and the Internet of Things (IoT), continues to transform daily life. One of the activities most impacted by these changes is commerce, especially retail stores that seek to adapt to compete in a phygital market.
Physical stores are adopting an increasing number of smart tools that allow for conveniences typical of online shopping, such as self-service kiosks, contactless payments, and cashierless stores. These advancements improve the customer experience, as well as optimize internal operations, allowing small businesses to compete with e-commerce giants.
This transformation causes multiple changes in people's consumption habits, impacting traditional purchasing methods. Currently, stores are redirecting their efforts to meet the new customer demands through the implementation of smart devices. However, Palo Alto Networks warns about the cybersecurity risks.
Increasing productivity with sustainability: IoT-based solutions
Technology, in addition to streamlining the shopping experience, reduces operational costs, promotes customer loyalty, and increases satisfaction. Furthermore, automation improves inventory management, enabling faster restocking, more efficient customer service, and self-service systems that accelerate transactions, increasing productivity.
IoT-based security systems strengthen theft monitoring, while energy use is reduced through the optimization of lighting and equipment. Loss prevention technologies also help reduce waste and overproduction, promoting sustainability.
According to Starfleet Research data on best practices in retail security, 68% of companies have already implemented this technology to accelerate intelligent customer engagement, real-time inventory management and the development of digital operations systems.
In this way, productivity drives a more sustainable model, aligned with global trade trends. According to the report, 58% of retailers are implementing IoT-based energy management solutions, such as interconnected lighting systems and water monitoring applications, helping companies meet environmental responsibilities.
Cybersecurity challenges in commerce transformation
The proliferation of connected devices also increases the potential risk surface for cyberattacks and data breaches. The increase in intrusion techniques has made IoT devices especially vulnerable. According to the IoT Security Best Practices report of Top-Performing Organizations in Retail, ransomware attacks in 2022 alone increased by 67% compared to the previous year, highlighting the challenges faced by the sector.
Governments around the world are responding with regulations designed to improve security in this area, such as the IoT Cybersecurity Improvement Act in the United States and the European Union's Cybersecurity Act. However, these regulations alone are not sufficient to address the multifactorial challenges.
How to boost security in retail
With the increasing variety and number of smart devices being implemented in companies, precise tracking of each one is essential. This visibility detects unauthorized devices and monitors suspicious activities, ensuring that merchants can protect their networks against potential threats.
Marcos Oliveira, Country Manager of Palo Alto Networks in Brazil, says that it is essential to use AI and advanced machine learning to detect and prevent potential threats before they can exploit vulnerabilities in devices: “A proactive approach helps reduce the risk of data breaches and ensures that systems remain secure.”
“It is necessary to manage a centralized platform, where robust security policies can be applied to all devices, regardless of manufacturer or operating system. Likewise, encryption and data protection must be priorities for businesses, as attackers can easily intercept and exploit them,” he adds.
The potential for digitization and automation in the retail sector is enormous and offers new opportunities for growth and innovation. However, the promise carries significant risks if the companies are not adequately protected. As technology evolves, security solutions must keep pace, reducing threats that could compromise the business operations of any organization, regardless of its size. Furthermore, it is mandatory to ensure the protection of user and customer data. During periods of high commercial activity, such as December celebrations, it is advisable to get ahead and protect yourself in a solid manner.
