Nowadays, you’d be hard pressed to find anyone who would argue that, as a species, we are headed towards a fully technological world. Within the retail space, last year projections were made that by 2025, retailers would be automating 70% of their everyday store tasks thereby improving overall efficiency, cutting operational costs and eventually bringing in higher profits.
And according to a new Mastercard Signals report titled Emerging Technology Trends for 2024, the retail industry’s compelling transformation will be influenced by various trends impacting consumer shopping behaviour, brand-consumer interactions and the way retailers do business.
In order to reach this techified future, retailers will need to adjust and capitalize on emerging opportunities in the coming three to five years. Developments in artificial intelligence, computational power and data technology are coming together to drive these trends. As they stimulate creativity, tech will move towards being more instinctive, engaging, immersive and seamlessly integrated into our everyday experiences. This transformation carries substantial consequences for industries such as retail. The trends highlighted in the Mastercard Signals report include:
AI
The integration of generative AI into our routines could become indispensable. Whether in the form of widespread digital assistants or enhanced software development, going forward, businesses need to remain informed of the intricate dynamics involving user actions, interfaces and ethical AI practices. Additionally, they will have to assess and manage the difficulties posed by AI-generated deepfakes, for example, emphasizing the increasing demand for reliable detection tools and standards for authenticating content. But while there will certainly be challenges, the emergence of gen AI co-pilots (systems that assist an end-user with effectively completing their tasks), for instance, will enhance the shopping journey by providing personalized and expedited services for customers.
Computing
Advancements in computing are bringing about impressive innovations such as spatial interfaces, which offer novel ways to engage with technology beyond traditional screens and an unprecedented level of authenticity. We will also witness the rise of next-generation networks that boost automation and intelligence in devices, along with the growing necessity for increased computational power to sustain advanced software and services. These advances in network technology are expected to usher in new automation, interconnectivity and intelligence, all leading to a smarter and simpler shopping experiences in stores.
Data
As for the data management space, tokenization is expanding the applicability of data in domains like identity and loyalty programs. An increasing dependence on sophisticated analytics and AI in decision-making will be noticed, emphasizing the importance of safeguarding data and incorporating ethical management principles. The broadening use of data opens avenues for new and enhanced forms of currency, like as reward points between customers and merchants.
The captivating aspect of these burgeoning technological trends lies in their interconnectedness, magnifying each other’s influence and capabilities. Merging AI, computing and data technologies is not only revolutionizing the tech and retail sectors but also reshaping industries such as finance, healthcare and education. In the end, consumer trust will serve as the essential factor that distinguishes and ensures their execution.
