5 Examples of AI Transforming the Shopping World

It's easy to imagine that artificial intelligence (AI) represents the first time in history that retailers have tracked their customers' buying habits. But long before AI, local shop owners paid careful attention to what their customers were buying and how often they came in for those items. It was one of the ways they could make sure to order the products most likely to be in demand. In other words, AI is a newer, more efficient way of doing something companies have done for centuries.

Here are five ways this more efficient information-gathering method is transforming our personal finances by changing how we shop.

1. Stores are less likely to run out of popular products

The bottom line for any retailer is making a profit, and the best way to do that is to provide customers with the products they want and need at a price they're willing to pay. A retailer does not simply consider what a few customers buy when ordering inventory.

With AI, a business can analyze past sales data to accurately predict future demand for a particular product. It's a great business strategy, but also good for a customer who does not appreciate going from shop to shop to find what they need.

2. Prices are better controlled by demand and competition

AI allows business owners to see how much their competitors are charging for the same product. At the same time, in an effort to protect their checking accounts, customers are on their computers or phone apps, using AI-driven programs to shop for the best prices in their area. Further, business owners know customers have access to which stores offer the lowest prices, meaning they have to keep their prices low if they want to compete.

3. Shoppers are (far) more likely to receive personalized discounts

As customers scroll the internet, looking for the items they want to buy, AI takes note and makes a list of "favorites." Let's say a person is seriously into the old-school Claire Burke fragrance for their home. They buy everything fragrance-related from Claire Burke, from tarts to room mist to candles. One day, while shopping online, they notice an advertisement that includes a discount code for Claire Burke products. That is considered a highly personalized discount, and it's thanks to AI.

4. Shoppers are better protected from fraud

It's possible you'll receive a call one day from your credit card issuer, asking if you're in a state other than your own, using your credit card to make a purchase. AI helps businesses and customers avoid getting ripped off by identifying red flags that fraudulent activity may be taking place.

5. It's even possible to try on eyeglasses without leaving home

It's surprising how quickly many of us have adapted to the idea of trying out a new pair of eyeglasses without leaving home. But all you need to do now is upload a photo that shows your face clearly, find a frame you'd like to try, and adjust the image so the frame fits your face.

Voila! Thanks to AI, you can try on as many pairs as you would like until you find one that makes you look fabulous. Word has it that clothing retailers are working to provide the same sort of virtual try-on tool, but the practice is not yet widespread.

AI benefits businesses by streamlining their processes and helping them avoid shortages and surplus stock. But shoppers may also benefit from AI. Not only can AI save a shopper from fraud, but it can help them save money through the use of comparison shopping apps.

How to maximize AI's impact on your bank account

If you own a business that benefits from AI capabilities, we say, "good on you." We know how hard owning a business can be, and if AI helps you build your dream, that's a good thing. And if you're an everyday consumer (and who among us is not), we have a few ideas for making the most of what AI has to offer.

• Take full advantage of price comparison tools. The right price comparison tool(s) can save you thousands of dollars over the course of a year. There's no need to thumb through newspapers or check out one store's sales at a time. A price comparison tool allows you to type in what you're looking for and compare the prices offered in local stores. It's that easy. Keep a running list of items you plan to pick up at each store.
• Pay attention to discounts and special offers you need and ignore the rest. Back when we were talking about personalized recommendations, we gave the illustration of a person who adores Claire Burke fragrances and receives a discount code as part of a personalized ad. If that person has a drawer full of products, there's no reason for them to pick up more just because they have a code in hand. Make discount codes, coupons, and online specials work for you by only buying what you need when you need it.
• Go the extra mile with your credit cards. Even if you manually monitor your cards, add another layer of protection with mobile alerts. That way, if anything AI finds suspicious happens, you'll know about it right away.

If you've downloaded your credit card apps, you can typically adjust your notification settings in your user profile. And just to ensure your phone allows notifications, go into the phone's settings, search for the specific credit card app, and enable push notifications.

As mentioned, AI is not going anywhere, so why not use it in ways that benefit you and your personal finances?