The Transformative Role of AI and Machine Learning in Retail: Enhancing Consumer Experience and Engagement - A Case Study of Morrisons

Abstract

The retail industry is undergoing significant changes driven by technological advancements in Artificial Intelligence (AI) and Machine Learning (ML). Traditional retailers are faced with the challenge of adapting to these technologies, hence new entrants who leverage from these technologies gain competitive advantage over them, the report focuses on the case of Morrisons, a UK based supermarket chain which began as a traditional supermarket and implemented these technologies recently with the aim to enhance customer experience and operational efficiency. Morrisons has embraced AI and ML to optimize stock levels, predict demand, and improve customer service. The partnership with tech firm Blue Yonder resulted in a system that accurately predicts store-specific markets by analysing sales data and weather patterns. As a result, Morrisons achieved a 30% reduction in shelf gaps, significantly enhancing the overall shopping experience. The study analyses how Morrisons implemented AI and ML technologies in their retail operations, types of technologies adopted and their practical applications. The methodology uses a qualitative case study approach, utilising document analysis of Morrisons corporate publications, industry reports and primary data from surveys. The research highlights Morrisons strategic implementation of AI-driven systems through partnerships with leading technological companies leveraging data. also addresses the challenges faced during this digital transformation, such as staff adaption and data privacy concerns, proposing a balanced approach to the retail landscape. The findings indicate that AI and ML technologies offer a competitive advantage, but each year, they are becoming essential for survival and growth in the retail sector. Morrisons case provides critical insights into the future of the retail market through technological innovation, ethical considerations, and an improved focus on the customer shopping experience.