Running a successful retail business requires herculean effort. Whether a brick-and-mortar store or online shop, inventory management logistics can easily fill a workweek, leaving precious little time for marketing and customer service. Many independent retailers lack the resources to hire additional employees and are instead harnessing the power of generative artificial intelligence services like ChatGPT and Google Gemini.
Early impressions are positive but show that AI isn’t a comprehensive solution for running a small business. Still, half of the retailers surveyed for an AI in Retail Research Report by Senior Lecturer Randy L. Allen at Cornell’s SC Johnson College of Business said that AI is necessary for staying competitive.
How independent retailers are using AI
“I think AI will be a game-changer in retail, but probably not in the ways people initially assume.” Cleveland Vintage Shirts CEO Steve DiMatteo told TWICE in a written interview. “It will become a vital tool like anything else, but there will always be a much-needed human element to monitor it and find the best use for it in their own unique case.”
DiMatteo’s e-commerce brand sells apparel focusing on the history of Northeast Ohio. He uses generative AI like Claude and Perplexity.ai to lighten the load. “If we record a podcast or do an interview,” DiMatteo writes, “we can take the transcript — using our own words, which is the important part — and have AI turn it into a blog post structure. From there, we can add to the post template and tweak things, but our own spoken words have been taken 99% to the finish line as a blog post thanks to AI.”
Nancy Roberts, Owner of My Charmed Store, a clothing seller in Perth, Australia, hesitated to adopt AI like Shopify Magic and Semrush Copilot. “First, I will tell you I didn’t start off with AI. I was among the category of people who did not welcome the transformation it could bring. My belief was having a website plus a few social media accounts was just enough to keep me on the right frequency.”
Roberts, like most people, saw AI solely as a boredom killer rather than a way to boost business. “I was wrong,” she writes. Today, Roberts primarily uses AI for content creation, product descriptions, daily audits, customer service and search engine optimization (SEO). “All of these would not have been possible without me challenging myself to make things happen. I took an AI course and it has been helping me reach new grounds.”
Building connections with customers
Using AI for content creation not only fuels organic growth for Cleveland Vintage Shirts, My Charmed Store and other retailers, it’s a way to connect with customers on a deeper level. “Our customers see that we are trying to be far more than just another online store selling Cleveland shirts,” DiMatteo writes. “We really care about the city, the region, and its history.”
Roberts shared a similar experience, “by using AI-driven analytics, I have been able to gain deep insights into my customer preferences, allowing me to tailor my marketing efforts and product recommendations effectively. I have an AI chatbot that ensures efficient customer support, addressing questions quickly and improving overall satisfaction.”
There are still limitations to AI
Despite their successes, Roberts and DiMatteo agree that overreliance on AI platforms isn’t wise. Roberts warns that “relying solely on AI-generated content for SEO can sometimes result in content that lacks the human touch and creativity, making it less engaging for one’s audience.”
DiMatteo echoes the thought. “No matter how many prompts you give it, AI will never reach that level.”
Still, both retailers would love improvements, such as Roberts’ desire to represent her brand’s voice better. “I feel it would require further development to match our specific needs. If this will be possible, I am convinced it will revolutionize our operations.”
Improved AI video tools are on DiMatteo’s wish list. “I’d like more help from AI in putting together video content, but I just feel like it’s still too limited in what it’s able to do, at least from the standpoint of producing something that is legitimately good.”
The future of AI in retail
When asked about the future of AI, Roberts shared excellent advice for businesses taking the traditional path. “The earlier retail businesses start embracing it, the better.” Hesitation and overconfidence can mean lost ground against competitors already optimizing operations with AI.
Roberts concludes, “Businesses can’t afford to be left behind.”
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