To Compete With Amazon, Retailers Reach For AI -- Here's How Some Get It Wrong

In my role as an industry analyst, I get asked all the time about retailers' investment plans when it comes to artificial intelligence. My answer usually covers the two ways that AI figured into the average retail enterprise these days. One way comes through investments where the AI component is completely unknown to the retailer. Usually, we're talking about personalization or some kind of optimization technology that contains a machine learning or natural language processing component to it. Retailers want the sophisticated solution, but don't realize they are actually investing in what qualifies as AI.