Artificial Intelligence

How artificial intelligence is transforming Indian retail sector

by | Oct 28, 2020 | Artificial Intelligence, Artificial Intelligence

Pandemic-induced disruptions have paved the way for retailers to apply real-time artificial intelligence models to improve business efficiency and resilience.
Share to lead the transformation

As the pandemic raged on, enterprises of all scales rushed to accelerate their digital transformation efforts for maintaining business continuity. The retail sector also didn’t escape unscathed and had to take a flurry of measures to remain operational amidst rising discretionary spending by consumers. (See: AI-driven analytics is CIOs’ mantra in the new normal)

The crisis has pushed the retail organizations to take pivotal digital decisions instantly to achieve tangible business results.

One of the technologies that has garnered much attention in these tricky times is Artificial Intelligence (AI). The technology enables organizations to make well-informed data-driven decisions and predict the possible outcome of those decisions.

Translating new normal into a winning position

There is a monumental shift in consumer buying behavior due to COVID-19. Even traditional brick-and-mortar businesses are moving to e-commerce platforms. The pre-COVID online buyers have accelerated their digital shopping by around 50%. Moreover, even a majority of conventional shoppers have moved to virtual shopping to ensure safety and hygiene.

Amidst the unpredictable customer expectations and increased demand for contactless distributions, the Indian retail enterprises are fast-tracking their investments in technologies such as artificial intelligence to translate the new normal into a winning position. With AI-enabled tools and customer-centric chatbots, retail enterprises can obtain valuable insights to predict new business opportunities, identify broken supply chains, and manage customer expectations better. (See: AI is a must now to speed up digital transformation)

According to a Nasscom study, the Indian retail industry is one of the top-five retail markets in the world by economic value and likely to achieve 3X growth and become worth US $1.4 trillion by 2024. NASSCOM further observed that the industry is experiencing a phenomenal transformation due to transitioning consumer behavior, organized retail growth, and multiple global players’ arrival.

Similar sentiments are shared by the Associated Chambers of Commerce and Industry of India (ASSOCHAM), an apex trade association of India, in a recent report. The industry body observed that the Indian retail industry is likely to see a massive transformation technology-led disruptions driven by AI and data-led opportunities.

Besides improved customer experience, the investments in AI-enabled platforms will also be valuable for retailers as it will enable them to deliver new product design ideas and expand their markets.

Leveraging AI to read consumer’s mind

With consumers are moving to digital technologies to shop, they still need the personalized experience to meet their custom needs. AI-enabled tools and technologies are being leveraged by organizations to identify key business and customer trends; ensure hygiene; deliver the goods safely, and conduct 1:1 session with customers.

AI tools also have a great potential to give the decision-makers timely visibility to align their strategic and financial primacies with these predictions.

Some prominent Indian retailers are already forging ahead and deploying the latest tools and AI innovations to navigate the crisis. An example is the Aditya Birla Group, which manages one of the largest Indian clothing retail chains. The group implemented several AI and deep learning solutions amidst the pandemic to keep its workforce safe and ensure hygiene factors at its manufacturing units. The group has a separate data and analytics cell, which focuses on advanced technologies to deliver better efficiency in-house as for customer service excellence.

During the nationwide lockdown, the group refreshed its already proven proprietary AI platform, VEDA (Video Enabled Decision and Alerts), with advanced capabilities to meet the manufacturing units’ needs and offices post COVID. The scalable platform enables Aditya Birla Group to deploy multiple video feeds and apply advanced analytics in real-time to develop meaningful interpretations, notifications, and alerts.

Similarly, online retail players such as Amazon, Big Basket, and Grofers have enhanced their AI-powered chatbots, who act as online experts and provide instant resolution to various transactional and routine queries raised by different consumers. For complicated and specific requests, the question can be re-routed to customer care. This entire approach not only automates the process but also help companies reduce their operational expenses.

Another critical area where analytics can be a crucial enabler is inventory management. By looking at the vast sets of shopper data, retailers can oversee purchase orders, ensure they have enough stock of a particular product, and keep their inventory model agile as per the market demand scenario.

Nevertheless, to climb the AI-maturity ladder, enterprises would need to set-up a conducive framework and need strong collaboration models with subject matter experts to address the evolved customer requirements. (See: Enterprises jump on the AI bandwagon but seat belts are few)

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electric vehicle charging

GST rate on charger or charging stations for EVs is cut from 18% to 5%. (Representative Image)

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These changes shall become effective from 1 August, 2019.

Govt using satellite imagery for assessing crops

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Representative image.

Pradhan Mantri Fasal Bima Yojana (PMFBY) envisages use of improved technology to reduce time gap for settlement of claims of farmers. Accordingly, the Department of Agriculture, Cooperation and Farmers Welfare, through Mahalanobis National Crop Forecast Centre (MNCFC), involved 8 agencies/ organizations to carry out pilot studies for Optimization of Crop Cutting Experiments (CCEs) in various States under PMFBY. The studies used various technologies, including Satellite data, Artificial Intelligence, Modeling tools etc. for reducing the number of CCEs required for insurance unit level for yield estimation. The studies were taken up to address a major issue of the need to carry out large number of CCEs for calculation of yield data vis-à-vis claims at Gram Panchayat level. The results are being evaluated for providing recommendations for their implementation in the upcoming seasons.

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With a view to ensure better transparency, accountability, timely payment of claims to the farmers and to make the scheme more farmer friendly, the Government of India has comprehensively revised the Operational Guidelines of the Pradhan Mantri Fasal Bima Yojana (PMFBY) which have become effective from Rabi 2018-19 season. Provision of 12% interest rate per annum to be paid by the Insurance Company to farmers for delay in settlement claims beyond 10 days of prescribed cut-off date for payment of claims. As the settlement of claims for Rabi 2018-19 season is underway, the admissible penal interest is not yet worked out.

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Uber ties up with SUN Mobility for EV push

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electric vehicle charging

Representative Image

Mobility service provider Uber has entered into a partnership with SUN Mobility, aimed at reducing the overall cost burden for Uber driver-partners.
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40 Tata electric buses for J&K

Tata Motors has installed charging stations for fast charging of buses.

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Speaking on the occasion, Rohit Srivastava, Vice President and Product Line Head – Passenger Commercial Vehicles, Tata Motors, said, “With growing environmental concerns, electric bus will be extremely vital for mass transit because it is not only energy efficient but also reduces overall cost per kms. Tata Motors has always been at the forefront of the E-mobility evolution and this order from JKSRTC is a testament of our excellent range of buses built for STUs in India. Our in-depth understanding of sustainable public transport for different markets and customers has helped us differentiate from our competitors. The electric buses will play an integral role in reduction of pollution load in the congested areas of our metropolis. We are determined to develop alternate fuel technologies and create more energy efficient vehicles thereby supporting the government’s efforts towards promoting electric vehicles in the country.”

Dr. A.K. Jindal, Head Engineering (Electric & Defence), CVBU, Tata Motors said, “Tata Motors has been engaging in advanced engineering and development of electric traction system for Hybrid as well as Pure Electric vehicles for over a decade. The Ultra Electric Bus is a new modular platform, which has been developed in a very short lead-time of less than a year, leveraging the knowledge and experience we have gained and demonstrating our commitment to the Government of India’s National Electric Mobility Mission Plan for Public Transport. The architecture of the platform has been conceived and developed by in-house engineering team of Tata Motors, meeting the requirement of various tenders floated by different state transport undertakings. The exterior has been designed with new brand identity that includes stylized Ultra headlamps and streamlined looks. The vehicle architecture ensures very low energy consumption and low TCO (total cost of operation) apart from being a Zero Emission environment friendly bus.”

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Commenting on the occasion, Bilal Ahmed Bhatt, Managing director, JKSRTC said, “The need for a cleaner, smarter and safer mode of transportation is a prerequisite for Jammu and Kashmir, due to the alarming rise of air pollution in the city. Tata Motors has pioneered technological innovations in the bus segment with an in-depth understanding of different market conditions, making it a perfect fit for us. Tata Motors will be delivering 40 e-buses, which will soon ply on the roads of Jammu and Kashmir. We look forward to continue this association.”

The critical electrical traction components have been sourced from internationally known best-in-class suppliers in USA, Germany and China offering proven products. The buses have been tested and validated by Tata Motors across states including Himachal Pradesh, Chandigarh, Assam and Maharashtra to establish performance in diverse terrains. The company has tenders to supply 255 electric buses to six public transport undertakings including WBTC (West Bengal), LCTSL (Lucknow), AICTSL (Indore), ASTC (Guwahati), JKSRTC (Jammu) and JCTSL (Jaipur). In addition to this, the company is also working on developing its electric mini-bus segment in the near future.

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When any request under the Act is received from any State Government in respect of any water dispute on the inter-State rivers and the Central government is of the opinion that the water dispute cannot be settled by negotiations, the Central Government constitutes a Water Disputes Tribunal for the adjudication of the water dispute.

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