By Rieva Lesonsky

The Role of AI in Transforming Local Retailers

Artificial Intelligence (AI) is frequently perceived as a domain exclusively for big corporations with significant resources. However, transformative AI solutions are increasingly becoming accessible to small businesses, enhancing their operational efficiency and streamlining daily tasks.

A notable example is Evermile, a UK-based platform designed explicitly for local retailers. Co-founded by Omer Goldschmidt, the platform aims to demonstrate how AI can fundamentally change the landscape for small retailers. Although currently operating only in the UK, Evermile plans to launch in the United States this year.

Unlocking Potential with AI

Rieva Lesonsky: What makes AI such an essential tool for small businesses today?

Omer Goldschmidt: One of the primary challenges small business owners face is time management. They are often required to juggle multiple responsibilities—including order fulfillment, marketing initiatives, and customer interactions—without the extensive resources available to larger enterprises. This can hinder strategic planning and business growth.

AI addresses this issue by automating an array of repetitive tasks. For instance, Miles, Evermile’s AI assistant, can take on approximately 70% of daily operations, essentially acting as an additional team member. This efficiency enables small businesses to compete as if they had the manpower of much larger organizations.

Practical Applications of AI in Retail

Lesonsky: Could you illustrate how AI operates within small retail environments?

Goldschmidt: Delivery management is one prevalent challenge faced by retailers. Traditionally, coordinating deliveries may involve navigating through spreadsheets, making phone calls, and contacting various couriers, making it a time-consuming and error-prone process.

With AI, these procedures can be streamlined. For example, Miles evaluates delivery locations, current driver availability, and cost variables instantaneously to determine the optimal delivery method—be it through an in-house driver or a third-party service. This not only enhances time efficiency but also fosters a better customer experience.

In terms of customer service, many businesses struggle to handle inquiries across diverse channels such as websites, social media, and texting. AI solutions like Miles can aggregate these questions into a singular interface, delivering immediate and precise answers based on real-time data, such as inventory levels or order statuses. It’s akin to having a dedicated customer service representative available around the clock.

Lesonsky: What about marketing strategies? In what way can AI assist local businesses?

Goldschmidt: Marketing is frequently overlooked in small enterprises because of time constraints. AI revolutionizes this aspect by automating personalized marketing campaigns. For instance, if a customer has not made a purchase recently, AI systems can automatically send personalized promotions tailored to their past buying behavior.

Additionally, AI can analyze delivery trends. If a bakery notices that its cake orders peak on Fridays, it can implement automated midweek discount promotions to drive sales. This capability to make decisions in real-time enhances overall business effectiveness.

Factors to Consider Before Embracing AI

Lesonsky: What should small businesses keep in mind before integrating AI into their operations?

Goldschmidt: The efficacy of AI is heavily dependent on the quality of the data it utilizes. Many small businesses struggle with unstructured data—such as handwritten notes and disjointed spreadsheets—which can constrain AI effectiveness. Therefore, the initial step should be to organize this data systematically.

Businesses must also select AI tools that are tailored to their specific operations. Many generic AI solutions tend to lack a nuanced understanding of unique business models. Therefore, selecting AI that is specifically designed for certain tasks—like managing a florist’s delivery schedules—will yield better results.

Additionally, it is crucial to maintain human oversight. While AI can manage routine tasks effectively, escalation protocols must be in place for more complex issues, ensuring that human judgment remains a fundamental part of operations.

Lesonsky: How do you respond to the criticism that AI is often overstated in terms of its capabilities?

Goldschmidt: I recognize that skepticism exists. AI has been a hot topic for years, and many solutions have not lived up to their promises. However, the current state of AI technology has matured significantly, yielding tangible results.

For instance, a retailer utilizing Miles has reported a dramatic 90% reduction in customer inquiry response time and over 15 hours saved each week on delivery planning. Such outcomes are not theoretical; they directly impact a retailer’s performance.

It’s important to keep in mind that AI should be viewed as a useful tool—not a catch-all solution. Its success relies greatly on effective implementation and usage.

The Future Landscape of AI for Small Businesses

Lesonsky: What future developments do you foresee for AI in small business operations?

Goldschmidt: We are only beginning to explore the vast potential AI holds. Over the coming decade, the extent to which small businesses adopt AI will significantly influence their success. As the technology continues to evolve, we expect to see increasingly sophisticated applications, ranging from predictive inventory management to dynamic pricing mechanisms.

What excites me most is the increased accessibility of such capabilities for local businesses. AI is no longer restricted to the realm of large corporations, allowing small retailers to utilize tools that empower them to compete and flourish in an everchanging market.

About the Author

Rieva Lesonsky specializes in content creation pertaining to small businesses and entrepreneurship. For inquiries, reach Rieva at [email protected], follow her on Twitter @Rieva, and explore her website SmallBusinessCurrents.com for insights on business trends and subscribe to Rieva’s free Currents newsletter.