Over the past couple of years we have seen a significant rise in terms of ecommerce as consumers turned to online platforms to scratch their retail itch during the pandemic. With more businesses embracing ecommerce to supercharge their offerings, AI-aided solutions have grown in popularity.
While artificial intelligence serves up the possibility of more personalised experiences for consumers, it also brings into question the notion of privacy.
As Wendy Tembedza, partner at Webber Wentzel, highlights, any local retailer wanting to implement an AI solution will also need to consider PoPIA, given just how data hungry these kinds of applications can be.
“Personalised retail achieved through AI is redefining customer shopping trends. AI can help deliver enhanced customer experiences by making better product suggestions, enabling faster checkouts, and facilitating more convenient in-person shopping,” explains Tembedza in an op-ed sent to Hypertext.
“Retailers are also using AI in virtual fitting rooms which are a great way for customers find the perfect outfit while saving time. A virtual fitting kiosk from Me-Ality can scan a customer in 20 seconds and measure 200,000 points of their body in this period. Companies like Levi’s and Gap have installed these scanners in selected stores and have seen a notable increase in sales as a result,” she adds.
Looking at the local retail sector, the Webber Wentzel partner cites a recent solution from Superbalist called Fit Finder. For those unfamiliar with the solution, Fit Finder (developed by Fit Analytics GmbH) assists consumers shopping online to make accurate sizing choices by answering a series of size and brand-related questions.
This can no doubt be a helpful solution for consumers, addressing an extremely pertinent area of concern, but an equal concern will be how data captured is handled and what implications it has in terms of PoPIA.
“While the use of AI creates opportunities for retailers, the deployment of any AI tool in the South African retail context must be carefully scrutinised for compliance with data protection laws. AI tools should be configured and operate in such a way that they help the retailer to meet its obligations under the Protection of Personal Information Act, 4 of 2013 (POPIA),” warns Tembedza.
“For example, the use of facial recognition AI meets the definitional requirements of personal information regulated by POPIA. Retailers will therefore need to be comfortable that their chosen tool includes appropriate controls to reduce the risk of unauthorised access to the relevant data,” she illustrates.
With every company being a digital one in this current day and age, implementing shiny new solutions also needs to be tempered with an understanding of regulatory responsibility.
“AI can have a significant positive impact on how retailers deliver personalised customer experiences. It has been shown that these experiences can result in retailers not only retaining their existing customer base, but also gaining new customers. However, when implementing AI retailers must be cognisant of their obligations under POPIA,” concludes Tembedza.
[Image – Photo by Xianjuan HU on Unsplash]
