Retailers using AI should be aware of privacy and cybercrime issues, warns Wendy Tembedza, partner at webberwentzel ~
Artificial intelligence is being deployed to help shoppers make better choices, but retailers must be aware of their obligations under personal privacy and cyber crimes laws.The acceleration of the fourth industrial revolution due to the Covid-19 pandemic has contributed to our general understanding of artificial intelligence . AI is no longer viewed as a creation of science fiction.
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. 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.
The viability of AI-driven consumerism depends on retailers’ ability to show they can process personal data responsibly. 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 .
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