Next time, seeking Lowe's for a new house plant, supply for preparation for hurricane season, or part to fix leaks in the bathroom, the amount of product and location inside the store will be affected by artificial intelligence.
Home improvement retailers use AI systems to better understand the rapidly changing needs and expectations of their customers and optimize their store layout accordingly. For example, in the case of plants, AI can predict an increase in demand for a particular type of seasonal shrub, increase orders as interest increases, and place plants in the most obvious in-store locations.
In the case of hurricane preparations, you can order more flashlights and weather radios, taking into account sudden changes in weather. Plumbing items can also be placed near the front of the store due to leaks that require urgent attention during harsh and unpredictable seasons.
Chandhu Nair, Senior Vice President of Data, AI at Lowe's, told Business Insider the technology allows store chains to create more immersive shopping experiences that are easier and easier to navigate.
This effort is driven by behind-the-scenes homely retail staff and white-collar workers, ensuring that AI will augment rather than trade jobs.
The whole team effort
Nair said that providing a physical retail experience “simpler, faster, more enjoyable” requires a large amount of real-world data, including “store traffic patterns” and “local settings” provided by store clerks and customers. He added that Lowe's spatial planning team needs the right tools to extract meaningful insights.
Previously, these teams relied heavily on manual processes to gather, analyze this information and put into practice insights. As a result, Nair said it could take several months for Lowe to see meaningful results. However, the AI-equipped spatial intelligence system has reduced this to “a small part of the time.”
Nair said this is paramount, especially as new product trends are constantly appearing and disappearing, especially for social media apps like Tiktok. He said, “We will be able to exchange layouts more frequently throughout the year, reflecting what customers in that area need at that point.”
In addition to spatial intelligence and data analytics tools, Lowe's is also investigating the possibility of digital twins, software that generates virtual versions of physical environments such as retailers. Nair said the company used Omniverse, Nvidia's 3D graphics platform, to create early stage apps that provide sales and inventory data, automatically sort stocks, generate 3D versions of physical assets, and create more from a single platform.
If it was finally adopted, he told Bi “we can give merchants a way to digitally test and refine the layout, then make changes in the store, helping to express the most relevant products that match the way local customers shop.”
AI for smarter shopping
It's not just retailers who believe in the possibilities of AI. A study by multinational conglomerate Honeywell found that 80% of retailers will acquire AI systems over the next few months to better understand their customers, create more efficient shopping experiences, and increase worker productivity.
In particular, computer vision models can offer many possibilities for retailers as well. Vinod Goje, software engineering leader and AI solutions strategist, told BI that such systems can generate heat maps that signal the store portions with the most pedestrians, allowing workers to place products and design retail layouts more strategically.
Goje added that retailers could also install computer vision systems on the shelves to ensure that products are in the right place and are restocked when stocks go low. The technology can also work with AI to show customers personalized offers on smart screens in-store, he said.
In the future, agent AI systems designed to make decisions independent of humans could further disrupt the retail sector. Sucharita Kodali, principal analyst at market research firm Forrester, told BI that AI agents can find people to fill for sick employees, order products when inventory levels are low, and create a marketing plan in line with available inventory.
Issues to consider
Of course, as retailers like Lowe become more dependent on AI to improve efficiency, there is growing concern that the technology could wipe out millions of blue-collar jobs in the coming years. Nya, however, emphasized that Lowe's approach was to expand staff and not push them out of work. He said that using AI to optimize Store-Layout requires “human creativity.”
Amid concerns about AI adoption, Nair emphasized that the company does not use “technology for technology.” Rather, it focuses on solutions that address the biggest issues with staff, based on feedback from in-store and from e-commerce teams.
Looking ahead
While many of Lowe's AI projects are still in their early stages, Nair is optimistic about their role in the future of retailers a century ago. He said his team will continue to “continue to improve the linking of insights and forecasts” and “adapt stores faster” and will create “smart and more personal” experiences for loyal customers.
To do this, Nair and his team will continue to experiment with new AI tools, improving them through a “fastest feedback loop” and strive to create “a ever-evolving, valuable retail experience with customers.”
He told BI: “We are excited about what's going forward and how AI can help us continue to solve problems and realize our home dreams.”
