Amazon could build a stake of almost a third in warehouse robotics firm Balyo in the next seven years, as part of a deal that could boost sales of the French company's technology for self-driving forklift trucks. Warehouse automation is a key element in efforts by Amazon to cut costs and speed up deliveries. The world's biggest online retailer currently uses robots developed by Kiva Systems, a company it bought for $775 million in 2012. Amazon could build a stake of almost a third in warehouse robotics firm Balyo in the next seven years as part of the new deal. 'This agreement ... represents an unprecedented opportunity for Balyo to grow its business and supports the soundness of our investments over the years to perfect our robotic solutions,' Balyo Chief Executive Fabien Bardinet said on Thursday.

Giant travel search engines such as TripAdvisor, Expedia, Kayak, and Google Flights have all but replaced travel agents as most consumers' travel advisors. Soon, independent curating engines like these could trigger the next wave of disruption in retail. The first stage of the digital shopping revolution saved consumers time and money by letting them buy things they already wanted without having to go to a traditional retail store. A major part of the second stage will likely be a dramatic refinement of technologies that tailor recommendations and then scour the internet for the best deal. Some established retailers already offer services to help customers find the most suitable products among those they supply.

When reviewing 2018's retail landscape, there have certainly been ongoing challenges and opportunities that have pushed the evolution of retail to match the demands of a changing consumer. Mobile technology, speed of service/delivery, and low prices are just the tip of the iceberg. In recent discussions with a variety of retailers and retail analysts in Australia and New Zealand, artificial intelligence (AI) and machine learning (ML) are high on everyone's list of toys for the New Year to generate efficiencies across the retail enterprise. The question retailers are asking is whether to build an AI/ML engine themselves or, more probable, turn to a specialised software company already operating in the AI/ML space. Consumers want their product and they want it now -- in their size, flavour, length, shape, brand, weight.

AI is impacting every sector, and retail is no exception. Analysts have estimated that global annual spending on AI by retailers is estimated to reach 7.3 billion by 2022, all because AI offers new ways to improve the customer experience and to optimize operational efficiency and productivity. But are retail organizations getting the most out of this epoch-making technology? The new report by the Capgemini Research Institute Building the Retail Superstar: How unleashing AI across functions offers a multi-billion dollar opportunity surveyed 400 retailers implementing AI use cases at different stages of maturity (a group that represents 23% of the global retail market by revenue). The report shows that around three-quarters of use cases in retail are consumer-facing and that retailers, in focusing on AI in sales and marketing, are losing sight of other areas, such as supply chain, procurement, and logistics, to which AI can also be applied for easy-win opportunities. Many retailers are going after complex use cases and overlooking a $340 billion prize offered by use cases in operations.

French digital consultation firm Capgemini predicts AI offers a yet untapped $340 billion opportunity for the retail sector. Retail is a major focus of AI but there's debate over whether it will have a positive or negative on society, especially with regards to jobs. Some believe AI will assist existing jobs while others take a view it will replace workers. Capgemini found just one percent of retailers have achieved the level of AI deployment needed to reach its full potential. "For global retailers, it appears reality has kicked in regarding AI, both in terms of what the technology can achieve and what they need to do to get there. Of course, deploying and scaling will be the next big objective, but retailers should be wary not to chase ROI figures without also considering the customer experience."

In a world where many retailers struggle to keep up with tech-driven customer demands, such as mobile sales and personalization, online retailer zulily has made it part of its DNA. Gaurav Tandon, zulily's director of data science and machine learning, notes that embracing tech at its core allows the retailer, which saw net sales of 1.6 billion in 2017, to be "different than commoditized search and transactional ecommerce." Zulily seeks to create an entertaining and engaging "browse and discover" shopping experience online through both its website and app, and although the customer sees a seamless experience, it takes a lot of technical complexity, says Tandon. In fact, the company launches 9,000 products through more than 100 sales events a day. Because the company launches a new assortment of products daily across a variety of product categories, every day is different and, according to Tandon, requires flexibility in all parts of the business.

Kroger and Microsoft have teamed up on a "connected store experience" that will provide customers with new ways to shop. The companies are piloting the experience at two Kroger stores -- one in Monroe, Ohio and another in Redmond, Washington -- and it represents the next step for their EDGE shelving system. Kroger and Microsoft announced EDGE, or Enhanced Display for Grocery Environment, last year, and it consists of digital shelving displays that can show pricing, promotions and nutritional information. With the pilot program, the companies are further incorporating EDGE into customers' shopping experience. Together with Kroger, we are applying the power of Azure and Azure AI to redefine the shopping experience for millions of customers at both Kroger and other retailers around the world.

Recent technological innovations have opened up avenues for retail transformation at an unprecedented pace. With the rapid ascendancy of the Internet of Things (IoT), Artificial Intelligence (AI), Augmented Reality (AR), Virtual Reality (VR), Smart Sensors, Blockchain, Chatbots, and much more, retailers are often left paralysed by the daunting task of navigating through today's labyrinth of technology. Therefore, as retailers stand on the precipice of a new year of technological discovery, it is hardly surprising that so many have chosen to spend time demystifying the existing technology landscape before allowing themselves to be seduced by the next wave of innovation. While the upcoming year will not be without its fair share of technology breakthroughs, many retailers are starting to press the proverbial pause button in order to better understand the value of prior investments, distinguish hype from reality, and find creative ways of translating the infinite possibilities of digital technology into meaningful and scalable human experiences. As retailers embark on this journey two questions will dominate: how do we eliminate the siloes between different technologies to create entirely new integrated realities; and, how can we better align human and technological capabilities in ways that enhance the value of both assets?

Encouraged by media portrayals of AI, a widespread myth is that AI simply learns by itself. For example, a common misconception represents AI as a digital brain that can be plugged and played into a given scenario, learning to solve X, Y, Z challenges on its own. Such representations are based on fiction, not fact. While AI is a robotic brain that can learn, it learns in a different way than a human brain. AI uses mathematics and pre-classified data to learn. Crucially, AI needs a human brain to guide it through the learning process by pre-classifying data into categories that it can examine and categorize.

Leading apparel retailers are embracing advanced analytics and blending intuition with science to price smarter. The competitive landscape in apparel is shifting rapidly as new price leaders capture market share. The battle for value has never been harder fought. The very definition of value is evolving quickly, pressured by Amazon's entry into apparel, fast-fashion retailers, flash sales, and the arrival of ultravalue players. Between 2012 and 2017, only the value sector of apparel retail, including off-price players, showed any growth as both the middle and premium tiers shrank.