Whether you do your shopping online or in store, your retail experience is the latest battleground for the artificial intelligence (AI) and machine learning revolution. Major Australian retailers have begun to realise they have a lot to gain from getting their AI strategy right, with Woolworths currently openly recruiting a head of AI and machine learning to be supported by a team of data scientists. The newly developed Woolworths division WooliesX aims to bring together a diverse group of teams -- including technology, customer digital experience, e-commerce, financial services and digital customer experience. To understand the opportunities and threats for all major retailers, it's useful to understand why artificial intelligence is back on the agenda. Two crucial things have changed since the initial forays into AI decades ago: data and computing power.

From facial recognition for unlocking our smartphones to speech recognition and intent analysis for voice assistance, artificial intelligence is all around us today. In the business world, AI is helping us uncover new insight from data and enhance decision-making. For example, online retailers use AI to recommend new products to consumers based on past purchases. And, banks use conversational AI to interact with clients and enhance their customer experiences. However, most of the AI in use now is "narrow AI," meaning it is only capable of performing individual tasks. In contrast, general AI – which is not available yet – can replicate human thought and function, taking emotions and judgment into account.

This is a preview of a research report from Business Insider Intelligence, Business Insider's premium research service. To learn more about Business Insider Intelligence, click here. Current subscribers can read the report here. One of retailers' top priorities is to figure out how to gain an edge over Amazon. To do this, many retailers are attempting to differentiate themselves by creating highly curated experiences that combine the personal feel of in-store shopping with the convenience of online portals.

The leather shoes you've ordered are now out-of-stock. Would you like me to find you another pair?" "Can you get me the brown instead…No, black." Black is easier to pair with other colors." The Chinese e-commerce giant introduced new upgrades to the bot, including 24/7 automated customer support, stronger predictive analytics to forecast what users might ask next, greater scalability for peak demand and small nudges to facilitate shopping decisions, such as reminders about discount vouchers on offer to consumers. Alibaba said the newly upgraded bot can help merchants cut up to half of their previous call-center costs, as well as feature a "warmer touch," allowing the bot to converse more naturally thanks to human-computer interaction technologies.

Hyper-personalisation provided by data is now a reality in retail and associated services - and for switched-on companies it can take that personal touch a step further. Emil Eifrem, data specialist and graph database pioneer explains. Customers today expect increased levels of personalisation in their retail purchases and associated services – time is precious, they want to engage with retailers who consistently know them and understand what they want. Today, more businesses are competing for your customers' wallets, and hyper-connected digital consumers have neither the time nor inclination to trawl retail channels. They demand personal recommendations based on their individual preferences, shopping history, interests and social context.

Consumers are no longer tethered to the cash register -- a fact that we widely recognize and embrace. What can more often go unnoticed is that merchants are no longer tethered to the traditional POS, either. Now every point -- in time and in place -- holds the possibility to connect with consumers but also to convert into a point of sale. Retailers are highly motivated, therefore, to develop payment ecosystems that best capitalize on this opportunity-rich yet diffuse environment and to integrate it into the in-store experience. In its 2017 Mobile Business Report, Business Insider reported that in-store mobile payments will reach $503 billion by 2020, reflecting a compound annual growth rate (CAGR) of 80 percent over five years.

Amazon has opened a second location for its radical Amazon Go concept store. The store, the second in Amazon's hometown of Seattle, will be a mile away from the original location near the Seattle Central Library at 920 Fifth Ave., and opened at 7 a.m. The new store is slightly smaller than the original, at 1,450 square feet, and won't sell alcohol or staples like milk and bread. Amazon confirmed the new store in a statement, saying'We are excited to bring Amazon Go to 920 5th Avenue in Seattle. The store will open in Fall 2018.' Pictured, the original store It also forgoes an in store kitchen, and will have its fresh food supplied by an Amazon kitchen facility in Seattle. Gianna Puerini, the Amazon vice president who oversees Go, told the Seattle Times she expects a higher portion of office workers among the clientele compared to the first store.

Can you imagine your stylist being a bot capable of giving you clothing advice based on human input? Well, to stay ahead in the $3 trillion global fashion industry, retailers are turning to stylists and personal shoppers to help them fine-tune algorithms that help them serve their customers better. By infusing bots with humanity, fashion-forward companies like Japanese high street brand Uniqlo, are finding innovative ways of staying ahead with their competitors. Rei Inamoto, the founder of Inamoto & Co., the New York-based firm behind Uniqlo's technology, believes that when somebody asks, 'What should I wear?' they're looking for a personalised answer which gives them a useful edge. Taking a different approach, some companies are finding various ways of offering customers both customisation and convenience.

Clobotics, a leader in intelligent computer vision solutions for the wind power and retail industries, announced that it has closed an additional $11 million (USD) in funding in a continuation of its Series A round of financing. Venture capital raised in this round now totals $21 million (USD). New investors include Nantian Infotech VC and Wangsu, joining previous investments from KTB Network, GGV Capital and Capital Development Investment Fund Management Co., Ltd. With the new capital, Clobotics will continue to expand its business in North America to further penetrate the wind power and retail industries. The company will also invest in ongoing product development and continue to build its growing team of experts in computer vision, artificial intelligence (AI) and machine learning.

Can't decide what to wear? Uniqlo, the Japanese fast fashion chain, has a solution: a chatbot that gives clothing recommendations based on human input, as well as your purchasing history – and your horoscope. The technology, which has been years in the making, is just one example of the extremes that retailers are going to as they try to build computer algorithms that can intuit the intangibles of fashion. "Instead of making something that's purely mechanical – you bought this last month, so you might like this – we're infusing humanity into the process," said Rei Inamoto, founder of Inamoto & Co, the New York-based firm behind Uniqlo's technology. "When somebody asks, 'What should I wear?' they're looking for a personalised answer."