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AI Takes Center Stage at Retail's Biggest Trade Show

AI Takes Center Stage at Retail's Biggest Trade Show
The Verge

AI‑Powered Experiences on the Show Floor

Visitors to the National Retail Federation’s trade show encountered a variety of artificial‑intelligence demonstrations. Hypervsn displayed a holographic figure named Mike, a ChatGPT‑powered avatar that answered audience questions after a short delay. Nearby, a gnome‑like hologram responded in rhyming verse. Retail clients said they request non‑human holographic characters to keep a distance from fears that AI will replace jobs.

New Shopping Protocols and Chatbot Integration

Google announced an open‑source Universal Commerce Protocol that enables AI agents to communicate directly with retailers, allowing shoppers to purchase items from stores without visiting the retailer’s website. The company also said retailers could set up discounts for shoppers browsing in AI mode. Papa John’s demonstrated a chatbot that can auto‑fill previous orders, suggest items based on dietary restrictions, and even accept a group photo to determine party size.

Expanding AI Jargon and Services

Retailers are coining new acronyms such as answer engine optimization, generative engine optimization, and generative search optimization to describe AI‑focused search strategies. Fabric offers a monitoring service that tracks how often a brand appears in AI chat platforms, charging businesses for access to that data.

In‑Store Tracking and Privacy Concerns

Solum, using technology from SpaceVision, demonstrated a system that assigns a numeric ID to each shopper, captures facial metadata, and records how long a shopper watches a digital display. The system can trigger personalized offers based on that engagement. An employee explained that video footage is deleted within a millisecond, leaving only metadata. The staffer acknowledged that European shoppers might feel uneasy about such surveillance, while noting cultural differences in acceptance.

A Counterpoint: Packaging Without AI

Equapack’s booth stood out by focusing on physical packaging rather than digital solutions. Founder Eran Rothschild said the company does not use AI for design, preferring tactile samples and reusable, luxurious bags that enhance the consumer’s experience. He argued that AI visualization does not capture the true nature of the product.

Overall Landscape

The trade show illustrated how AI is infiltrating nearly every aspect of retail, from front‑end shopper interactions to back‑end inventory and logistics. While many vendors tout AI as a path to greater efficiency and personalized experiences, concerns about data privacy and the human touch remain prominent. Some exhibitors embrace the technology wholeheartedly, whereas others deliberately steer clear, highlighting a split in industry attitudes toward AI’s role in the future of commerce.

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Source: The Verge

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