Machine learning (ML), a subset of artificial intelligence (AI), may confuse many new retail business owners and managers. However, once they learn what it is, how it can benefit the bottom line, and how to use it, it becomes another tool in the arsenal of increasing sales and profits.
The below infographic, Machine Learning in the Retail Sector, presents a basic overview of the topic. It begins with an explanation of artificial intelligence and machine learning. Basically, artificial intelligence is the development of computer systems that can perform tasks usually considered to require human thought. For example, AI applications use visual perception, speech recognition, language translation, and decision-making tools to analyze and solve problems, speed up processes, and even learn.
Machine learning is a branch of the term artificial intelligence. Computers are provided with algorithms that allow the system to access and analyze data, find trends, automatically learn from experience, and continually improve. The system learns from data analysis to identify patterns and make conclusions with virtually no human intervention. The short definition is that ML helps computers do through data analytics what humans do naturally — learn from experience.
ML can also be used to attract new customers. Based on current profiles, machine learning helps to expand the consumer base by identifying potential clients who share many of the characteristics of the business’s most profitable customers and targeting ads and promotions to these prospects.
Even more, benefits will likely be found in the future. Isn’t it time to take advantage of all the data that’s out there now by jumping on the ML bandwagon?
Graphic created by Aptitive.