‘Investing in integrated systems & data essential to unlocking AI’s benefits’
By N Jayalakshmi | January 09, 2025
ROI from AI investments can be mapped in multiple ways, from reduced markdowns & higher sell-through rates, to better resource utilization, and improved customer lifetime value. But making AI work depends on many factors, as Nitin Chhabra, CEO, ace turtle explains, in this exclusive interaction with Retail4Growth.
Do you see AI making a difference to front-end retail, in terms of enabling enhanced consumer touchpoints? If so, how?
Absolutely. AI is already reshaping the way brands interact with customers. For example, we have harnessed AI to create seamless omnichannel experiences. We use AI in demand forecasting to ensure the right products are available at the right time, reducing stockouts and enhancing customer satisfaction.
AI is also revolutionizing the in-store experience. Consider AI-powered tools like virtual fitting rooms or augmented reality-enabled mirrors that allow customers to visualize products before buying. Indian retailers are integrating AI-driven chatbots to assist shoppers with personalized recommendations, much like global retailers.
AI helps personalize every touchpoint—from product recommendations based on browsing history to customized offers delivered in real time. It’s about building a relationship with the consumer and simplifying their journey across online and offline channels.
What does this entail? Seamless integration of back-end tech operations and the design/VM teams?
Yes, and this is where AI’s potential really comes into play. ace turtle leverages Computer Vision to analyze CCTV footage in retail stores, enabling insights into customer footfall, gender distribution and age groups. It generates heatmaps to identify the most visited areas and peak footfall times, enhancing store layout and operations. Additionally, it detects objects like empty cartons or understocked racks, ensuring prompt action to maintain an optimal shopping experience.
To make this work, back-end tech, design, and VM teams need to be in sync. For example, AI can analyze sales patterns and guide VM teams on which products to spotlight in displays. Indian retailers are already integrating AI to optimize their store layouts based on foot traffic patterns, improving both aesthetics and functionality.
In addition to collaboration, it’s critical to invest in data integration. AI thrives on accurate, real-time data—whether it’s inventory levels, customer preferences, or seasonal trends.
Would you say AI is not a futuristic tool, but very much a functioning part of the retail experience ecosystem today?
AI is not just the future; it’s the present. AI is deeply embedded in retail today, driving efficiencies and improving customer experiences. Indian retailers are employing AI for personalized style recommendations and using AI-powered algorithms for real-time inventory management to prevent stockouts.
But do you see the whole retail ecosystem really cued into AI applications to elevate shopper experience? What are the typical challenges or misconceptions that you see here?
There’s growing adoption, but the ecosystem still has a long way to go. One of the biggest challenges is the misconception that AI is only for large players. Another barrier is the concern that AI might replace human jobs. AI is an enabler—it takes care of repetitive tasks so that store associates can focus on providing exceptional customer service. For instance, AI-driven tools can predict customer demand, but the human touch remains key in delivering an engaging in-store experience.
Indian retailers sometimes struggle with siloed data, which prevents AI from achieving its full potential. The other major issue in AI adoption is the legacy mindset that resists change. Investing in integrated systems and ensuring data quality is essential to unlocking AI’s benefits.
Do you think investing in AI tools will become integral to store project management in the future? If so, how do you think they can map the ROI from this?
Definitely. AI is already proving to be a game-changer in store project management, and this will only grow. Indian retailers are leveraging AI to plan their logistics and store rollouts more efficiently. ROI from AI investments can be mapped in multiple ways—reduced markdowns, higher sell-through rates, better resource utilization, and improved customer lifetime value (CLV). The key is to look at both tangible and intangible benefits, including customer loyalty and satisfaction.
Any other observations to share in terms of AI as an integral part of store experience and operations?
One of the most exciting developments is AI’s ability to optimize supply chains, reduce waste and improve energy efficiency. This would make retail operations more streamlined and efficient.
Another area is content creation. Generative AI tools are automating time-consuming tasks like drafting product descriptions or creating marketing content. On the operational side, AI is also improving energy efficiency in stores by optimizing lighting and air-conditioning based on foot traffic patterns.
The bottom line is that AI is no longer optional, it’s becoming a core part of every retailer’s toolkit to stay competitive and relevant. Those who embrace it now will be the ones who will be better prepared to meet consumer needs in future.
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