How AI Is Revolutionizing the Shopping Experience: What You Need to Know

It wasn't that long ago that applying artificial intelligence (AI) to everyday activities seemed like something straight out of The Jetsons. Yet here we are, using AI to find our way around town, translate one language to another, diagnose medical conditions, and shop. Retail has embraced AI, counting on its power to make customers happy and increase revenue. In order to become a better-informed consumer, here's some of what you should know.

Smile, AI-powered cameras and sensors (could be) watching you

According to a 2020 article in Forbes, retailers are using AI-powered video surveillance to see what customers buy. Further, thanks to self-checkout, these retailers can log the quantity and weight of items purchased. Being able to log what consumers buy allows retailers to restock popular items before there's a shortage, which many of us can agree is a positive thing. After all, who wants to trek to the store at midnight for baby formula only to learn it's not in stock?

However, a murkier advancement of AI centers around video technology that helps identify shoplifters, what they took, and the value of those items. On one hand, cutting down on shoplifting helps lower prices for the average customer. On the other hand, the technology is new enough that it's fair to worry that someone might be misidentified as a shoplifter. According to the same Forbes article, data can identify shoplifters based on previous behavior, flagging them to store managers the next time they enter the store.

AI-powered cameras and sensors are also used to track the in-store movements of ordinary customers. This ability allows a retailer to arrange its store to make it easier for customers to pick up the products they most commonly buy. While that's good for the customer, AI-powered cameras also make it easier for retailers to optimize their profits by making sure higher-priced items are within easy reach.

Those personal recommendations? They're coming from inside the house

Most of us have searched for an item online, only to receive online ads for that product over the next few days. That's due to AI-driven engines that analyze our browsing history, purchase history, and preferences to customize recommended products.

Let's say you're a pet owner who frequently buys dog food online. You are the ideal audience for pet toys, beds, training, and other pet-related products.

Again, from a retailer's perspective, this is a good thing. AI enables merchants to offer you products you may be interested in, rather than flooding you with ads for items of no interest to you. If you're a person who tends to overspend, though, the constant temptation to spend more may not be so positive.

Chatbots: Friend or foe? (Talk among yourselves)

When was the last time you attempted to reach a customer service department? Whether you called your bank or logged online to "chat" with a customer service department, there's a fair chance you reached a chatbot (my credit union calls its chatbox Bob). Is it annoying? Absolutely. However, it also has an upside. As long as you ask a basic question, you can receive an immediate response 24 hours a day.

The frustrating bit is when it's the middle of the night, and you realize your credit card or bank account has been hacked. Sometimes, you just want to speak with a real human.

Visual search is like retail GPS, taking you where you want to go

No matter how you feel about AI, it's hard not to be impressed by visual search. Say you're looking for the name of an unusual piece of fruit you ate on vacation. You're not exactly sure how to describe it or what to type into a search bar, but fortunately, you took a photo.

Using your smartphone, tablet, or computer, you upload the photo and wait for the visual search tool to identify the kind of fruit you were served.

And you know that great dress your sister wore to your cousin's wedding? Take a quick pic, and if you so choose, you can conduct a visual search and buy one in every color. Take that, Becky.

Like many things in life, AI is a mixed bag. It has the potential to make life easier, but can also feel pretty intrusive. Since it does not appear to be slowing down, perhaps the best you can do is find ways to use it for the benefit of your personal finances. That may include using AI as a reminder to end unwanted subscriptions or let you know a bill is coming due. It may mean letting AI dig for product discounts or even help you become more comfortable investing. The point is, if AI is going to be around, it might as well help make your future brighter.