Artificial intelligence (AI) is revolutionizing the retail industry, introducing smarter solutions to pricing, inventory and customer experience. Monika Shrivastav, winner of the Edelman Medal for her pioneering work on AI-driven dynamic pricing, offers insight into the key trends reshaping retail. Drawing on her experience leading large-scale AI implementations at Walmart, she highlights how these technologies create business opportunities to thrive.
1. Dynamic Pricing for Competitive Advantage
Dynamic pricing transforms retail by enabling real-time price adjustments based on market trends and consumer behavior. Monika Shrivastav led the development of a multi-objective pricing optimization framework at Walmart, using reinforcement learning to refine markdown strategies. She explains: “The ability to align prices with real-time demand creates measurable value, helping retailers stay competitive while meeting customer expectations. »
His award-winning work has improved profitability and set a benchmark for how AI can seamlessly integrate into retail operations.
2. Omnichannel merchandising
AI is revolutionizing omnichannel merchandising by seamlessly connecting physical and digital retail channels through techniques such as machine learning and computer vision. At Walmart, Ms. Shrivastav led efforts to analyze customer behavior across different channels and used AI to connect them all to ensure Walmart had the right assortment in the right place at the right time. She explains: “AI brings together all shopping channels into one seamless experience on mobile, buy in-store or use collection services. »
3. Streamlined inventory management
Accurate inventory forecasting and effective supply chain management are essential for modern retailers. AI systems can predict demand with remarkable accuracy by analyzing historical sales data and market trends. During her tenure at Walmart, Monika Shrivastav implemented AI tools that reduced overstocks and minimized out-of-stocks, significantly improving operational efficiency.
She highlights: “AI enables businesses to optimize inventory levels and streamline supply chain processes, thereby reducing costs and improving customer satisfaction. »
4. Improving Supply Chain Resilience
AI also addresses challenges in supply chain logistics, providing real-time solutions to disruptions caused by weather or market volatility. Monika Shrivastav highlights how AI tools can provide dynamic rerouting, prioritize shipments, and predict potential bottlenecks. At Walmart, she led efforts to integrate AI into supply chain decision-making, ensuring on-time deliveries and preserving customer trust.
“AI-based insights are essential for building a resilient supply chain, able to adapt to unexpected challenges without compromising service quality,” she explains.
5. Increase replenishment through local distribution networks
AI is revolutionizing replenishment by intelligently orchestrating local distribution networks with real-time demand forecasting and dynamic inventory routing. Monika mentions that “by analyzing data from multiple sources – including historical sales, local events and regional preferences – AI optimizes inventory allocation across fulfillment nodes, from traditional warehouses to fulfillment centers. micro-processing and dark stores, ensuring that products are strategically positioned closer to consumers. while maintaining optimal stock levels and reducing delivery times.” Adding local distribution networks to our replenishment strategy is a game changer as it helps reduce costs for the end consumer.
Create meaningful connections and provide value every step of the way
Monika Shrivastav demonstrated how AI can transform the retail industry through her innovative projects and leadership. From dynamic pricing to resilient supply chains, his work offers a blueprint for organizations looking to leverage AI effectively. She says: “The future of retail lies in using AI to not only optimize operations, but also to create meaningful connections with customers and deliver value at every stage. »