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Transforming Grocery Retail With Artificial Intelligence

Published February 1, 2021
in Blog by Birdzi
Transforming Grocery Retail With Artificial Intelligence

Artificial intelligence is fundamentally transforming the way retail operates. It is a combination of leading-edge technologies that enable machines to think, comprehend and execute tasks like humans. It’s a computer program that learns from experience and uses that to get better at what it does. The key is that AI does things humans aren’t capable of doing- such as analyzing enormous amounts of data to predict problems and outcomes.

Retailers now are moving towards building a better grocery experience for their customers by creating a seamless experience across channels, providing personalized promotions, recommendations, and offerings, increasing customer loyalty, and so on.

With the abundance of customer data and product information available, grocers today are at the advantage of applying machine learning and AI in every area of the business. With the kind of data that is available today, there is are a lot of opportunities to utilize the data in the right manner. This is where AI comes in. Using machine learning capabilities and analytics, more grocers are leaning towards adopting this technology to strengthen the relationship with customers, as well as address some of the biggest challenges they are facing today.

Pricing and Promotion

AI helps grocers to provide a deeper understanding of context and intent by answering the questions behind customers’ shopping decisions. It helps segment customers based on various variables and help grocers gather information about their key shopper demographic as well as brand preferences. This information is then leveraged to provide promotions and offers through highly targeted campaigns. It also enables the grocers to parse the customer data and automate the ability to offer targeted promotions to each customer.


The tech-savvy customer expects personalization and retailers are rising to the challenge with the help of big data, machine learning, and AI. AI models learn customer behavior by analyzing browser history, page clicks, social interactions, past purchases, the duration for which a page was viewed, location, etc. to gauge customer interests and preferences.

It can help deliver product recommendations based on frequently bought items, or related products. It can even help customize web pages and elements to suit a customer’s needs.

Enriching In-Store Experiences

AI-enabled technology can help customers locate products in the store, receive real-time in-store, location-based targeted offers on their phones, get proximity-based alert notifications. This aids purchase decisions and enhances the customer experience. Then AI can leverage that data to understand which products to promote to individuals to get them into the store, to add another item to their shopping basket, and to better retain them.

Birdzi’s Customer Intelligence platform leverages AI and machine learning to provide services to its clients including Weis, Coborns, and Harps.

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