The surge in American purchasing has spurred merchants to retaliate. However, what effect has this had on the crisis combination? And how does AI fit into this next development?
According to the Council on Criminal Justice, there has been a notable surge in shoplifting instances nationwide, with a 24% increase in cases. A recent poll found that nearly four out of five U.S. stores experience monthly losses from shoplifters of between $500 and $2,500.
In order to safeguard their inventory, this tendency has forced retailers to implement cutting-edge technology, particularly artificial intelligence (AI). Theft has cost the economy enormously, rising from $69 billion in 2019 to $94.5 billion in 2023.
AI Transforms Retail Security
Conventional security measures, such as cameras and on-site staff, have not been sufficient to stop shoplifters using more and more sophisticated techniques, especially those employed by organized retail crime (ORC) gangs.
By monitoring behavior in real-time to spot suspect conduct and notify employees before theft happens, AI provides a proactive solution. Retailers are able to keep one step ahead of such risks as a result.
Many stores in Detroit, where stealing has become a major issue, have resorted to AI solutions in order to safeguard their inventory.
A business focused on artificial intelligence called Veesion has created a technology that uses AI to observe and analyze human motions on security cameras. Veesion’s algorithms are able to identify potential security issues by identifying small indications that are typically missed by the human eye. This allows retailers to take preventative action.
These artificial intelligence (AI) systems are made to recognize clues that indicate possible stealing, like customers loitering near expensive goods or coming and going from the business without buying anything. AI enables retailers to respond quickly by seeing these tendencies early on, which lowers the risk of theft and minimizes losses.
The Retail Sector’s Challenges with AI Implementation
80% of consumers, according to recent research, want shops to get their express agreement before using their data for AI.
Retailers must strike a careful balance between safeguarding client privacy and the necessity for increased security, which calls for open and honest communication regarding the usage of AI technologies.
Maintaining this equilibrium is essential since shops are using AI more and more to combat the rising issue of stealing. Despite obstacles, reports suggest that the high prevalence of stealing and the demand for creative solutions will fuel the continued growth of AI use in the retail industry.
AI is turning into a vital tool for retailers looking to safeguard their assets against theft. According to experts, artificial intelligence (AI) will enhance current security measures, including security tags and surveillance cameras, to offer a more all-encompassing approach to retail security. Retailers believe they can stay ahead of possible threats and secure their long-term profitability by utilizing AI.
