AI technology could soon change the way people buy essential goods.
Sam’s Club announced earlier this month that it plans to use artificial intelligence and computer vision-based technology to verify shoppers’ receipts as they leave the store. Meanwhile, Kroger is rolling out self-checkout solutions that incorporate AI technology. In the coming months, independent grocer Geisler’s Supermarkets will begin replacing most of its traditional shopping carts with Instacart’s AI-powered caper carts.
Grocery stores have been leveraging AI technology online and behind the scenes in recent years, said Melissa Minkow, director of retail strategy at digital consulting firm CI&T. But recently, grocery stores have started introducing them to stores where they can interact with shoppers. By adding AI technology to physical stores, grocers can increase labor efficiency, speed up lines, and make the shopping experience smoother.
“Given the economic climate, we are in a tough working environment,” Minkow said. “It is critical that retailers optimize their employees’ time so they can be fulfilled and interact with customers in the most effective way.”
In fact, grocery stores are investing heavily in artificial intelligence. In fact, grocers plan to increase their AI spending by 400% by next year, his 2023 joint report from the Food Industry Association, Grocery Doppio, and Winshop shows. The report lists merchandising, marketing, and supply chain as the top three use cases for AI technology.
Minkow said some grocery stores are starting to use AI to perform redundant tasks typically performed by store employees. Sam’s Club, for example, is introducing a receipt verification tool that will gradually eliminate the need for employees to manually scan and inspect receipts as shoppers leave the store. The tool will initially launch in 10 locations, but will roll out to about 600 stores soon this year.
Meanwhile, Kroger is leveraging AI to prevent theft as it invests more in its self-checkout model. The grocery store will have cameras monitoring self-checkout lanes, and artificial intelligence will be used to see how shoppers scan items.
“There’s definitely a chance we’ll receive large baskets from shoppers,” Minkow said. “Brand reputation is also strengthened as customers leave feeling more satisfied with their interactions with store associates.”
Instacart’s AI-powered cart It has the ability to automatically identify items that shoppers have added to their carts. The smart cart then scans it and adds it to the shopper’s total bill. Carts also help speed up the checkout process. Geissler’s Supermarkets shoppers can also link their loyalty account to their cart to receive personalized promotions.
In announcing the rollout of Instacart’s Smart Cart stores, Bob Leibig, CEO of Geisler’s supermarket division, said the company aims to attract more repeat customers and expand basket size. He said that “The value that Caper Carts brings to our customers and our business in the short and long term is clear,” Rybick said in a press release. “At launch, it will reduce lines and crowds, allowing store associates to focus on customer support. The cart screen allows customers to easily find items on their list while browsing the aisles, stay within their budget, and more. You’ll have access to customized recommendations and deals.”
AI can help make stores more efficient, but implementing it in stores can be difficult, said Sudip Mazumdar, North American retail industry leader at Publicis Sapient. Using AI technology to shop may take some people a learning curve. “When you enter the self-checkout register, [for example], what the store did was shift the burden on the clerk to the consumer, he said. It can be a “very frustrating experience for consumers.”
Additionally, AI technology can still make mistakes, leading to shopper dissatisfaction. A social media user in a YouTube short claimed that Kroger falsely accused a self-checkout of stealing in his lane.
Still, Mazumdar expects investment in AI to continue. “We feel this will accelerate considerably because this will actually help improve cost savings.”
