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The Future of Retail: It’s Human + AI, Not Human vs. AI

Artificial intelligence (AI) has become ubiquitous, promising to revolutionize industries from healthcare to transportation. Retail is no exception, with AI touted as a game-changer for everything from inventory management to customer service. Yet, amidst the excitement, a crucial element often gets lost: the human element.

At Mobile Insight, we believe the future of retail isn’t about replacing humans with AI; it’s about strategically blending the strengths of both. This blog post explores how a human-centered approach to AI, like the one we take with our retail engagement solution, VIBA, can unlock new potential in the retail sector.

We sat down with Jon Campbell, Director of Product Management and Alex Abilmona, Solutions Engineer, to explore this further.

A Human-Centered Approach to AI

VIBA, our intelligent engagement solution, embodies our human-centered approach to AI. VIBA is designed to engage shoppers, answer their questions, and provide personalized recommendations. But VIBA is not meant to replace human employees; it’s meant to complement them with consistent and accurate product information and always-on availability. This collaborative approach ensures that customers receive the best of both worlds when they’re in brick-and-mortar retail stores.

VIBA demonstrates how AI can be used to enhance the customer experience while simultaneously empowering retail employees. The key is to focus on creating AI that is not only intelligent but also genuinely human-like in its interactions.

Beyond Automation: The Nuances of Human Interaction

Many view AI through the narrow lens of automation, focusing on its ability to streamline processes and reduce costs. While automation is undoubtedly a valuable aspect of AI, it’s only scratching the surface of its potential. Truly valuable AI goes beyond simply automating tasks; it requires a deep understanding of human interaction to interpret context, tone, and intent. This is where the human touch becomes indispensable. AI can process vast amounts of data and identify patterns, but it’s humans who provide the empathy, creativity, and nuanced understanding necessary to create truly engaging and meaningful customer experiences. We’re pulling insight from retail strategy, brand positionings, and shopper personas, and matching that to the desired response from a sales associate to inform VIBA’s presentation and responsiveness.

“The way AI responds needs to align with human expectations. If it sounds too robotic or misinterprets intent, shoppers will quickly disengage.” Alex Abilmona, Solutions Engineer

 

The Critical Role of Human Expertise 

While AI algorithms can learn and adapt, they require human guidance to ensure they’re aligned to business objectives and ethical considerations. Jon Campbell emphasizes the importance of human oversight in training AI models: “LLM (Large Language Model, an AI algorithm) is really the injection of human knowledge into the ability to complete these processes.” Humans are still needed to curate data, identify biases, and refine algorithms to ensure that AI systems are accurate, fair, and aligned with brand values. Moreover, humans are essential for interpreting the data generated by AI and translating it into actionable insights.

AI can provide the raw data but it’s humans who provide the context, creativity, and critical thinking necessary to make sense of it all.

Conclusion

The future of retail is not about choosing between humans and AI; it’s about harnessing the power of both. By embracing a human-centered approach to AI, retailers can create more efficient, personalized, and engaging customer experiences while simultaneously empowering their employees. At Mobile Insight, we believe that the most successful retailers will be those who understand how to strategically blend the strengths of humans and AI, creating a synergy that elevates the entire retail experience.