Big-box retailers have long leveraged technology to streamline operations, engage customers and drive sales. Today, many smaller, independent retailers – like jewelers and pet store owners – are following suit as technology, such as Artificial Intelligence (AI), is hitting Main Street.
For small and mid-sized specialty retailers, AI is proving to be more than a buzzword – it’s becoming a critical part of day-to-day operations. From automating customer messages and generating compelling online product descriptions to analyzing inventory trends and predicting demand, AI is helping these stores save time, reduce errors and connect more meaningfully with customers.
Especially during the holiday rush, AI can help small businesses get those side tasks done without needing to put in extra hours.
“AI can take on repetitive tasks such as drafting newsletters, forecasting which items are likely to sell out and suggesting product pairings both online and in store,” says Spencer Wright, general manager, Like Sew. “The result is less stress for staff, fewer stockouts and a smoother, more personalized experience for customers during the busiest time of year.”
Implementing AI Into Your Business
If you’re looking to implement AI before the holiday rush starts, you’re not too late. Easy-to-implement AI tools such as ChatGPT Pro subscription or Perplexity, which cost about $20 a month, are a fast and affordable way to get started without costly custom systems.
These tools can be used to generate marketing copy and images, perform data analysis and so much more.
“By using AI to help write web content, educating retailers about the benefits of in-store shopping can help drive them into the store,” advises Nick Gurney, general manager, Jewel360. “It’s essential that retailers have an accurate representation of their in-store inventory on their online stores. When items are presented accurately, it can encourage customers to come into the store to see the item in person.”
Down the line, you can dedicate additional budget to increase AI’s capabilities within your business, but it’s smart to start small. Focus on solving one or two specific pain points and leverage affordable, existing software solutions that already have AI features built in.
Competing with Larger Retailers
Utilizing AI is a great way to help you compete with the big guys. While larger retailers compete on price and scale, small retailers can use AI to stand out through personalized content and community, according to Wright.
“AI tools make it easy to create content like social posts and blogs quickly and effectively,” he says. “Smaller shops can also move faster with AI-driven insights, adjusting inventory or launching flash events more nimbly than big chains.”
“Large retailers typically move slower than smaller retailers, so those that take advantage of AI tools now will be able to reap the benefits much quicker,” adds Gurney. “For example, it could take a large retailer months to make their products available to purchase via ChatGPT, whereas an independent retail store could complete that project over a weekend.”
Additionally, smaller retailers have the ability to be more nimble than larger retailers, enabling them to be more personal and specialized in their offerings.
AI Enhances Customer Engagement
AI offers small businesses several powerful ways to enhance customer engagement, primarily by enabling personalization at scale and automating customer service. More specifically, chatbots and messaging tools can act as 24/7 customer support so you never miss an opportunity to help a shopper, even when you’re busy.
“With a recent ChatGPT release, users are now able to purchase items directly within ChatGPT,” says Gurney. “I think that this will completely change the way consumers buy online. While shopping is a first step, I think that we can expect to see other types of engagement in the future, such as contact us forms and maybe even appointment booking. This is a space to watch!”
Agreeing with Gurney is Wright, noting that AI-powered messaging is an emerging tool that retailers are beginning to watch closely.
“In the near future, chatbots could answer basic questions, guide customers to related products or even help with class sign-ups at any time of day,” Wright says. “These tools would not replace personal service but extend it, allowing staff to focus on meaningful conversations and building relationships when the shop is open rather than repeating the same FAQs.”
The future for AI is endless, and the technology continues to evolve with each passing day. The faster that retailers get started utilizing this technology, the faster they can catch up when it advances.
