Can Physical Stores Read Bodies Like Clicks? Standard AI Has A Vision

Introduction to the Impact of Covid-19 on Retail

Of all the sectors disrupted by Covid-19, retail was among the hardest hit. Beyond straining supply chains—leading to shortages and higher prices—brick-and-mortar stores faced the worst-case scenario: the disappearance of shoppers.

We’re still feeling the effects today. But in hindsight, there was a silver lining: the pandemic sparked a revolution in e-commerce. Historically slow to adopt new technologies, the retail industry was forced to innovate. Retailers fought their way through the crisis, racing to catch up with the art and science of understanding human behavior, an area where Amazon had long set the standard.

The Emergence of AI in Physical Retail

A technology company born just before the pandemic—now known as Standard AI—is aiming to set the standard in a more critical domain: the physical store. Despite the rise of retail e-commerce, brick-and-mortar still accounts for 83.4% of retail, according to a recent report by the U.S. Census Bureau. Just as the pandemic served as an inflection point for digital retail, the emergence of AI may be creating a big moment for physical retail. This new category uses in-store cameras to observe shoppers throughout their visits, enabling retailers to make faster, smarter, better-informed decisions about product placement, store displays, and the overall shopping experience.

Security Cameras: Transforming a Cost into an Asset

Last week, I connected with Standard’s CEO Angie Westbrock via video conference. With its camera-driven VISION platform, Standard uses a store’s existing security camera network to anonymously observe shoppers throughout their shopping experience.

The approach provides both retailers and CPGs with a data foundation for understanding what’s working for shoppers in the store and what isn’t. How long do shoppers linger before they purchase an item? How can we tell that a shopper has decided to not purchase an item? What does a shopper’s posture suggest when looking at an item? (If she looks downward, it suggests she’s reading the label and that she’s making a decision based on nutritional ingredients or dietary restrictions.) Is the shopper more likely to choose an item at the end of the aisle – the “endcap” – or mid-aisle?

AI: Making Possible What Once Was Impossible

All that said, Westbrock cites a range of challenges that Standard faces in realizing its vision. The first is the lack of awareness of this type of retail solution. The category is relatively new and not widely understood.

“The problem exists, and retailers and CPGs know that,” said Westbrock. “But the solution that they’re looking for, they aren’t even aware that we can solve that for them.”

Then there’s the uncertainty of who in the retail organization has “ownership” of this kind of solution. Merchandising, operations, and IT all have a stake, which adds complexity to the sales cycle. It’s a marketing and sales challenge that’s typical for technology companies in new categories.

Finally, there’s the reality that adopting the technology does require some coordination. It’s here where Standard most clearly demonstrates ROI. By using existing security cameras, Standard eliminates a huge cost and performs the magic of transforming a cost into an asset. “This is the future of physical retail,” said Westbrock. “Cameras once used only for theft prevention can now be a profit center, an integral part of the retailer’s tech stack.”

Adding to the ROI story, there’s AI, the domain suffix in the company’s brand. AI is helping to leverage the volume of data required to do what Standard does. It’s a heavy lift. “AI is used to model human behavior,” said Adrian Newson, Standard VP of customer success. “Our insights are derived from the model, which removes the need for us to watch every interaction or shopper track. The model determines what constitutes specific behaviors based on the context of all shoppers in the specific environment, category, or store.”

Conclusion

It’s a quiet example of how AI is helping businesses do what was previously impossible – a big conversation today across industries — if not just unaffordable. And it’s an example in the world of physical retail, which is finally poised for a new era of AI-powered reinvention.

FAQs

Q: How does Standard AI use security cameras?
A: Standard AI uses a store’s existing security camera network to anonymously observe shoppers throughout their shopping experience.

Q: What benefits does Standard AI provide to retailers and CPGs?
A: Standard AI provides a data foundation for understanding what’s working for shoppers in the store and what isn’t, enabling retailers to make faster, smarter, better-informed decisions about product placement, store displays, and the overall shopping experience.

Q: What challenges does Standard AI face in realizing its vision?
A: Standard AI faces challenges such as lack of awareness of this type of retail solution, uncertainty of who in the retail organization has “ownership” of this kind of solution, and the reality that adopting the technology does require some coordination.

Q: How does AI contribute to Standard AI’s solution?
A: AI is used to model human behavior, removing the need to watch every interaction or shopper track, and determining what constitutes specific behaviors based on the context of all shoppers in the specific environment, category, or store.