How can Tictag help retailers with AI?

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Industry Learn

Retail

AI in Retail Explained: From Smart Sales to Generative Insights

by Maria Permataratri

1 min read

Oct 22, 2025 10:04:34 AM

What is AI in Retail?

AI in retail uses technologies like machine learning, predictive analytics, and computer vision to help retailers make smarter, faster decisions. According to IBM, retailers apply AI to “improve customer experiences, optimise pricing, and streamline supply chains.”

Online: recommendation engines and chatbots personalise the shopping journey.
In-store: computer vision helps track inventory and customer traffic.
Operations: AI forecasts demand, prevents overstocking, and predicts trends.

What Retailers Use AI?

Many major brands already rely on AI to stay competitive:

Zara uses AI to analyse real-time sales data and customer feedback to predict next-season trends.
H&M applies AI to optimise pricing and inventory distribution.
Amazon integrates AI in logistics and recommendation systems.

As Oracle notes, “AI helps retailers reduce waste, optimise floor space, and tailor offers to each customer.”

How is Generative AI Used in Retail?

Generative AI (Gen AI) takes retail innovation to the next level by creating personalised content and insights.

Marketing: Gen AI generates product descriptions, visuals, and campaigns automatically.
Customer service: Large language models power 24/7 chat support that sounds human.
Operations: AI agents summarise sales data, detect anomalies, and recommend next-best actions.

McKinsey highlights that Gen AI could unlock up to $660 billion in productivity for retail and CPG industries.

How is AI Used in Sales?

AI empowers sales teams to work smarter, not harder:

Predictive analytics forecast which products will sell best.
Recommendation engines increase conversion rates.
Chatbots handle pre-sale and post-sale queries automatically.
Smart dashboards show where staff should focus their efforts.

As NetSuite notes, “AI enables real-time pricing, demand sensing, and tailored promotions that drive measurable revenue uplift.”

Conclusion

AI is transforming retail, from predicting trends and optimising operations to delivering personalised shopping experiences. Leading brands like Zara, H&M, and Amazon show how AI drives smarter, faster decisions and stronger sales.

At Tictag, we help retailers achieve the same edge with AI-powered analytics that turn store and sales data into actionable insights for growth.

🔍 Discover more at tictag.io/tictag-insight

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