Trusted by:
How Artificial Intelligence in Retail is helping businesses scale?

Applications of artificial intelligence in the retail industry
Personalized experiences
We develop AI engines that analyze real-time and historical customer behavior data to provide your customers with hyper-personalized content, offers, and product suggestions. We have served brands across segments, whether it’s a beauty brand like Nykaa or a fashion store like The Souled Store.
Frictionless checkout
Say goodbye to cart abandonment. Our team of experts helps you implement smart checkout systems such as one-click payments, auto-filled forms, facial recognition, and even self-checkout kiosks. We make sure your customers move from cart to confirmation without any hurdles.
Demand forecasting
Using different machine learning models, we help you forecast product demand across SKUs, regions, and seasons. This helps you to avoid any overstocking or understocking, keeping your shelves optimized and your customers satisfied.
Loss prevention
We help you develop AI systems that monitor store activity using computer vision and detect suspicious behavior or anomalies in POS data. These tools can be a great assistance in preventing theft, fraud, and internal shrinkage. Ultimately, helping you save millions on an annual basis.
Automated inventory management
From stock audits to real-time replenishment triggers, we help you build AI solutions that take the guesswork out of inventory planning. We assist you in integrating the solutions seamlessly into your existing systems to help you manage inventory dynamically and accurately.
Intelligent shopping assistants
Whether it is an online chatbot or a self-serving kiosk in-store, we help you develop AI assistants that will help your customers find what they need. It can assist in comparing similar products and ultimately make faster decisions. It’s a good feature if you are looking to reduce staff dependency and improve the overall shopping experience.
Supply chain management
We build smart AI-powered supply chain models that can help you predict disruptions, optimize delivery routes, and balance stock across locations. With different features like real-time tracking and forecasting, you can easily increase fulfillment rates while reducing logistics costs.
24/7 AI chatbots
Our expert AI developers have years of experience in developing multilingual chatbots that will handle everything from order queries to product recommendations 24*7. It offers your customer an enriching and smooth experience around the clock. It gives you the advantage of freeing up your support teams and aligning them on more important tasks.
Location-based services
We utilize geolocation data and AI to enable retailers like you to push hyper-targeted offers, alerts, or store directions to customers when they’re near your physical outlets. Features like directing foot traffic during peak hours or promoting localized events help you increase real-time engagement.
Customer behavior analysis
We implement machine learning algorithms that help you study your customers in depth. Behavior traits like scroll depth, session time, and sentiment give you a clear picture. These insights help you fine-tune product placements, UI, and messaging strategies to align better with user intent.
Omnichannel retail intelligence
Our experts work with a holistic strategy wherein they help you build AI solutions that centralize data from all touchpoints, including website, app, physical store, and social commerce. This helps in ensuring every customer interaction is connected, consistent, and informed by a unified data layer.
Product recommendation engine
Building smart recommendations engines that analyze real-time shopping behavior, preferences, inventory, and trending data. The insights help in suggesting the right products at the right time. These AI tools have consistently helped our retail clients like Souled Store, Power look, Shoppers Stop, etc. Increase AOV and upsell/cross-sell efficiently.
How we helped top retail brands boost efficiency, engagement and revenue:
Developing an eCommerce app and mobile CMS for India’s largest street fashion & apparel retailer
Read More >Enabling India’s leading multi-brand online beauty retailer to leverage AI and achieve a 40% add-to-bag conversion rate
Read More >Developing an eCommerce application for Powerlook- one of the fastest-growing apparel brands in India
Read More >Developing a shopping and beauty e-commerce platform for an emerging Indian startup
Read More >Custom Salesforce CRM implementation for India’s top online furniture retailer
Read More >Automating AI/ML model training and deployment for a Singapore-based retail software provider.
Read More >Struggling to keep up with changing customer expectations? Let’s build AI solutions that adapt faster than your market does.
Our process to deliver a custom retail AI solution that works for you
Too much data, not enough insight? We help you turn information into intelligent retail experiences.
Why retailers are betting big on AI?
A recent study shows that 9 out of 10 retailers are already using AI to enhance everything from product discovery and pricing to inventory, customer service, and workforce productivity. Whether online or in-store, AI is no longer an edge. It is becoming the operational standard.
Yet, many retail businesses still struggle with fragmented data, unclear use cases, and underperforming implementations. That is where we come in. At Daffodil, we partner with both emerging and enterprise retail brands to help identify the right AI opportunities, develop scalable solutions, and deliver measurable ROI.
Today’s shoppers expect personalization, speed, and convenience—all integrated into a seamless omnichannel experience. And with competition growing fiercer by the day, the time to act is now. Retailers who embed AI into their operations will lead the next era of commerce.
Leveraging next-gen technologies to build innovative AI solutions for Retail
Machine Learning
We build intelligent systems powered by machine learning that learn from historical and real-time data to improve retail operations, personalization, and product performance over time.
Applications:
- Demand forecasting
- Dynamic pricing
- Customer segmentation
- Fraud detection
Computer Vision
We develop computer vision solutions that enable real-time video analytics and image recognition to drive smarter retail environments.
Applications:
- Automated checkout (e.g., cashier-less stores)
- Loss prevention
- In-store traffic heatmaps
- Shelf monitoring & planogram compliance
Conversational AI
We create AI-powered chatbots and voice assistants that enable human-like, responsive communication with customers across platforms.
Applications:
- 24/7 customer support
- Voice commerce
- AI shopping assistants
- Order tracking & queries
Generative AI
We help you leverage GenAI to automate content generation and enhance creative workflows in retail marketing and customer engagement.
Applications:
- Personalized product descriptions
- Automated ad copy generation
- AI-powered design suggestions
- Visual try-on / Style generation
Agentic AI
We build Agentic AI systems that go beyond passive automation. They act as autonomous agents capable of making decisions, learning, and coordinating tasks.
Applications:
- Intelligent inventory reordering
- Multi-system process coordination
- Autonomous customer interaction flows
- Smart store operations
Predictive Analytics
We implement predictive models that help retailers forecast trends, understand future demand, and take preemptive action.
Applications:
- Sales forecasting
- Customer churn prediction
- Market trend analysis
- Inventory optimization
Natural Language Processing (NLP)
We build custom NLP solutions that help retailers understand customer language, sentiment, and intent. It transforms unstructured text into actionable insights.
Applications:
- Sentiment analysis on reviews
- Automated email/chat classification
- Voice search integration
- Product Q&A generation
Looking for a partner, not just a vendor? Let’s co-create your AI strategy.
Sign up for a 30 min no-obligation
strategic session with us
- Validation of your project idea/ scope of your project
- Actionable insights on which technology would suit your requirements
- Industry specific best practices that can be applied to your project
- Implementation and engagement plan of action
- Ballpark estimate and time-frame for development
Frequently asked questions (FAQs)
There are some promising use cases of AI in the retail industry that are already making waves. Some common ones include personalized product recommendations, AI chatbots for customer support, demand forecasting, dynamic pricing, fraud detection, visual search, cashier-less checkout, and smart inventory management.
At Daffodil Software, we have implemented these and many more for leading brands across fashion, beauty, F&B, etc. Schedule a complimentary consultation session with us today, and together we’ll explore what fits your business objectives.
AI in retail is the hottest trend. It is helping companies scale and improve customer experience to an unprecedented level. AI can help you with real-time personalization, intelligent search, faster checkouts, proactive support, etc. It even helps you understand customer intent, behavior, and preferences. Enabling you to offer more relevant products, promotions, and interactions across all touchpoints.
While of course, AI performs better with more data, you don’t need massive datasets to get started. Our team of experts helps you identify high-value use cases that can deliver impact with the data you already have, and we can also help set up the right data pipelines to scale your AI capabilities over time.
There are multiple factors that define the timeline of implementation, including complexity and scope of the desired solution. Simple AI features like chatbots or recommendation engines can take a few weeks, while enterprise-grade AI integrations (e.g., supply chain optimization or predictive analytics platforms) may take a few months.
At Daffodil Software, we follow an agile approach, making sure all timelines are met. Schedule a call with us to get a precise timeline for your project.
We begin every engagement with a thorough assessment of your business needs, goals, and data maturity. If there’s a strong use case and potential ROI, we will recommend the right AI solution.
If not, we are here to give you honest advice on alternative digital strategies that better fit your business.