As artificial intelligence (AI) begins to influence nearly every aspect of daily life, the retail industry has proven to be an ideal ground for its application and growth. From social media marketing to supply chain management, AI has become an unstoppable force shaping how businesses operate and how consumers shop.
Whether shoppers have recognized its application or not, AI has been present in retail for years. Most shoppers are familiar with algorithm-based ads tailored to their browsing and purchasing habits. Digital marketing applications extend beyond the well-known e-commerce giants.
Some small businesses now use AI tools to shape their social media presence, identify trending content, and increase their exposure. However, as Lauren Marturano, CEO of Zinnia, told The Charlotte Ledger, “[t]here is nothing more important than the power of human connection,” reminding businesses that even in a digital landscape, authenticity must remain central.
During this period of rapid change in both retail and the broader global economy, Michael Terrell, Senior Managing Partner at Per Scholas, emphasizes the importance of digital literacy and staying true to brand values.
“Sure, it can help with creative content, and there’s a level where it’s going to be okay,” he says. He asserts that humanity should be “using it as your scalpel, not your sledgehammer.”
His point highlights the need for balance when incorporating AI into business applications; at its best, generative AI programs should support creativity, not replace it.
Terrell also underscores the long-term impacts and importance of education in adapting to technological change. “We need our kids to be learning the skills of what is real and what is AI generated,” he says. This awareness, he suggests, will be essential for future generations navigating an increasingly digital world.
Behind the scenes, artificial intelligence is streamlining operations by reducing the workload for employees and business owners alike. According to Pavion’s report on inventory management, AI-powered predictive analysis helps retailers forecast demand based on consumer behavior and market trends. This detailed analysis enables stores to meet demand more efficiently by stocking popular items in appropriate volumes while avoiding overstocking less-desired products.
AI also assists in building optimized purchasing routines and tracking in-store inventory, in addition to streamlining processes that once required manual oversight. These types of artificial intelligence analytics can be invaluable to the ultimate profitability of a small business.
The technological leap is not without its challenges.
Concerns about job displacement, data privacy and overreliance on automated systems continue to grow as more and more companies consider implementing various forms of AI into their business strategy.
For small businesses that thrive on community connection, AI presents the difficult choice of whether to embrace automation even if it comes at the potential cost of human jobs. During a recent Center for Digital Equity community council meeting, Charlitta Hatch, chief data and analytics officer for the city of Charlotte, stressed that ethical implementation must be at the forefront of AI adoption.
“In order to do AI safely, ethically and build that trust, we need to be bringing in our community partners and residents in these conversations,” she said. “We are being very thoughtful in how we use it because we want to make sure we honor our public’s trust.”
Hatch’s insight highlights the importance of defining clear ethical standards for how AI is used across industries.
Specific areas which are ripe for further development include, but are not limited to, the development of consistent policies which take into consideration the potential risks to corporate reputations, loss of community jobs and any risks to the public – whether safety or quality control.
The role of artificial intelligence in retail will only continue to expand. Predictive tools, social media automation and inventory optimization are all just the beginning. As AI evolves, so must our understanding of its reach and digital literacy. The challenge lies not in resisting technology, but in using it responsibly and inclusively.
Artificial intelligence is inescapable, and it is rapidly transforming the world. By improving customer experiences, streamlining workloads and offering valuable insights into consumer behavior, it is a potentially priceless resource. The task ahead is to ensure that this transformation benefits everyone, from producer to consumer, while keeping the human element at the heart of retail innovation.
Queens University News Service stories are prepared by students in the James L. Knight School of Communication with supervision and editing from faculty and staff. The James L. Knight School of Communication at Queens University of Charlotte provides the news service in support of local community news.
