Retailers should invest in artificial intelligence (AI), augmented reality (AR) and digital twin technologies across their in-store operations to help achieve a competitive advantage, according to a new report.

GlobalData’s The Future of Work in Retail and Apparel report explores changes impacting employment within the retail sector due to the increased use of technology. It advises where retail and apparel companies should focus their time and resources across the five segments of automation, visualisation, interpretation, collaboration and connectivity.

The report outlines that AI can streamline retail operations by helping to optimise inventory management, enhance customer service and improve supply chain efficiency. It also notes that, through predictive analytics, AI can help retailers to forecast demand, reducing overstock and stockouts while minimising waste.

“Chatbots and virtual assistants provide instant, 24/7 customer support, handling inquiries without human intervention,” the report says. “AI-driven automation improves logistics, ensuring faster restocking and more efficient delivery routes. Personalised marketing powered by AI analyses customer behaviour to tailor promotions, increasing sales and customer satisfaction.”

The report explains that, fundamentally, AI creates opportunities in interpretation – to improve decision-making – and automation – complementing human workers.

Of AR and digital twins, meanwhile, the report details that shopper engagement can be enhanced though immersive and interactive experiences that bridge the gap between digital and physical shopping.

“AR allows customers to visualise products in real-world settings, such as trying on clothing virtually, seeing how furniture fits in their homes, or testing makeup through digital overlays,” it says. “Digital twins provide interactive 3D models of products, store layouts and supply chains in a virtual setting. These technologies reduce purchase hesitation by giving a more accurate sense of product size, fit and appearance, ultimately increasing customer confidence and satisfaction.”

Through improving the customer experience, AR and digital twins serve ultimately to improve shopper retention, the report explains.