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Harnessing Artificial Intelligence for Strategic Retail Promotions

Sep 2026 · Advances in computational intelligence and robotics book series · 125 references
AI in Service Interactions

Abstract

The retail industry is undergoing a transformation due to the integration of Artificial Intelligence (AI) in promotional strategies. Traditional methods like print ads, radio commercials, and in-store displays face challenges in today's dynamic retail environment, such as the inability to integrate with online platforms and provide interactive experiences. AI technologies like machine learning, natural language processing, computer vision, and reinforcement learning are redefining promotional strategies, enhancing customer engagement, and optimizing marketing efforts. AI-driven promotions are set to revolutionize the industry, with hyper-personalization and omnichannel retailing becoming key trends. However, challenges such as data privacy concerns, algorithmic biases, and the need to balance automation with human touch points are also addressed. The chapter provides strategic recommendations for retailers to harness AI effectively, including investing in cutting-edge tools and fostering collaborations with technology providers.

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