TL;DR:
- GlobalData’s patent analysis reveals a threefold increase in AI-related patents from 2016 to 2023.
- AI patents in retail surged to 5,154 in 2021 from 3,810 in 2020, driven by COVID-19’s impact.
- Retailers invested in AI to fortify supply chains post-pandemic, contributing to the patent surge in 2022.
- Q2 2023 witnesses a slowdown in AI investments due to inflation, leading to collaboration with existing AI providers.
- Leading AI innovator eBay increased sales by $1 billion per quarter through AI investments.
- Apparel and footwear brands adopt AI for sizing accuracy, enhanced customer experiences, and trend analysis.
- AI-driven tools emerge: Nike’s Nike Fit app, Pretty Little Thing’s text and visual search, H&M’s generative AI design trials, Kering’s ChatGPT-powered personal shopping assistant, M&S’s AI automation, and Zalando’s personalized customer tool.
- GlobalData projects a $908.7 billion AI market in retail by 2030, driving further innovation and integration.
Main AI News:
The marriage of technology and fashion has never been more captivating. As we stride into a new era of retail, AI’s formidable influence on supply chains is causing seismic shifts within the industry. According to GlobalData’s patent analytics, a staggering surge in AI-related patents – nearly tripling from 2016 to 2023 – signals a pivotal transformation.
The outbreak of the pandemic in 2020 sent shockwaves across the retail landscape. Yet, amidst the upheaval, visionary fashion brands recognized a clarion call for resilience. Enter Artificial Intelligence, the silver bullet for future-proofing businesses. By automating supply chains and harnessing the power of AI, retailers not only weathered the storm but thrived. This very narrative finds embodiment in the surge of AI patents in 2021, a sharp climb from 3,810 in 2020 to a remarkable 5,154.
Globaldata’s groundbreaking report, “Artificial Intelligence in Retail and Apparel,” serves as a guiding light through this metamorphosis. The report posits that the tumultuous year that was 2020 drove retailers to invest heartily in AI, an investment aimed at fortifying businesses against unforeseen disruptions. This strategic pivot elucidates the surge of AI patents in 2022, unveiling a strategic shift in the industry’s DNA.
Fast-forward to Q2 2023, and the momentum appears to ebb. The respite is attributed to inflationary forces, causing a recalibration of investment strategies. As companies grapple with budgetary constraints, innovation momentarily takes a backseat. This climate, however, presents an opportune avenue for collaboration. Retailers, anticipating a dip in AI development patents, are poised to forge partnerships with established AI providers – a symbiotic alliance that promises synergistic growth.
Reflecting on the past decade, the vanguard of AI-driven progress is championed by eBay. In 2019, the vice president of applied research at eBay illuminated the brand’s AI investments, propelling sales by a staggering $1 billion per quarter. This remarkable feat underscores the untapped potential of AI, validating its prowess as a bottom-line booster.
Zooming in on the top five assignees of AI-related patents from 2016 to Q2 2023, a clear pattern emerges. The convergence of fashion and technology is no longer a dalliance; it’s a full-blown affair. Apparel and footwear brands have leaped onto the AI bandwagon, orchestrating an evolutionary spectacle. GlobalData’s projections set the tone for the next chapter, forecasting a burgeoning $908.7 billion AI empire by 2030, with more industry titans embracing this new order.
As the sun sets on this transformative landscape, the tales of innovation are too compelling to ignore. Behold the beacon of progress: US sportswear behemoth Nike unveils the Nike Fit app, a symphony of AR technology and smartphone wizardry. By scanning feet with precision, the app curtails ill-fitting woes, a triumph that redoubles profit margins.
Across the Atlantic, UK-based Pretty Little Thing masterfully weaves convenience into its retail fabric. The amalgamation of text and visual search tools enhances the shopper’s journey, reshaping customer experiences and fusing online channels with newfound usability.
Sweden’s fashion magnate H&M turns to generative AI, reshaping design trials through data-driven insights. The Generative Adversarial Network (GAN) takes the helm, birthing designs aligned with customer cravings and contemporary trends.
In the heart of luxury, France’s Kering dons AI as its personal shopping assistant, Madeline. Powered by ChatGPT, Madeline redefines the user experience, offering tailored recommendations within its KNXT marketplace, a realm adorned with NFTs.
Marks & Spencer, an iconic UK retailer, elevates efficiency through large-scale computer vision models. The orchestration of AI automates design, documentation, and content creation, epitomizing the convergence of creativity and efficiency.
Across the retail horizon, Next, another UK titan entrusts generative AI with customer interactions. Thousands of queries met with swift, consistent responses exemplify the AI-driven customer service revolution.
Germany’s Zalando adds the final brushstroke to this portrait of transformation. With ChatGPT at its core, Zalando crafts a tool that is set to revolutionize customer-product interactions. Launching in Germany, the UK, and Ireland, the tool redefines personalization, bridging the chasm between desires and discovery.
Conclusion:
The surge in AI patents and investments within the retail sector signifies a paradigm shift. Retailers’ swift adoption of AI to enhance supply chains, customer experiences, and efficiency reflects a strategic response to market dynamics. This AI wave is poised to reshape the retail landscape, fostering innovation, customer-centricity, and sustained growth.
