Emerging tech continues to reshape the commerce landscape and is poised to do so even more in the next three to five years. Key tech trends such as artificial intelligence (AI), computational power, and data technologies are expected to have a significant impact on various aspects of commerce.
Mastercard’s recent Emerging Technology Trends for 2024 report sheds light on how advanced technology is driving more intelligent and interconnected commerce experiences. Noting a growing need for computational power to fuel complex financial modeling, risk analysis, and real-time transaction processing, the report underscores the importance of leveraging technology to meet evolving consumer demands.
Evolving AI Assistants
AI, in particular, is set to transform shopping and commerce by offering personalized shopping guidance and enhancing the overall shopping experience. AI-powered assistants have the potential to streamline the customer journey by providing personalized product recommendations and expediting checkout. We’re currently seeing the use cases with platforms such as Shopping Muse and chatbots, which are being tested by such major retailers as Shopify and Walmart. These instances—while still in the early stages—demonstrate how integrating AI within the commerce space can effectively enhance customer interactions and streamline operations.
AI-driven recommendation engines analyze customer data to provide more relevant offers, helping retailers increase sales and customer satisfaction. However, along with the promise of AI come concerns regarding how the data is collected, in addition to tech responsibility, privacy, and overall security. Building trust with consumers will be important as retailers and brands increasingly rely on AI to drive business outcomes.
Immersive Experiences
Spatial computing is another emerging trend with the potential to transform commerce. By enabling consumers to interact with virtual objects and applications through gestures and eye movements, spatial computing opens up new possibilities for immersive shopping experiences.
Retailers can leverage the technology to create virtual fitting rooms that allow consumers to try on clothing and accessories from the comfort of home, not only improving the online shopping experience but also reaching consumers who don’t have to visit a physical store. Virtual showrooms let customers explore products in a virtual environment, enhancing the shopping experience and driving engagement. Virtual try-on solutions and digital twinning in the apparel industry, as well as immersive shopping experiences developed by luxury goods companies like LVMH, highlight the transformative potential of the technology.
Enhanced Connectivity
Advancements in network technologies are also driving automation and interconnectivity, leading to more contextually relevant and guided shopping journeys. The digital transformation of the Port of Rotterdam, for example, demonstrates how sensor-equipped IoT devices and cloud computing are optimizing port operations and increasing efficiency, safety, and capacity while reducing supply chain costs.
Retailers can harness data analytics to gain insights into customer preferences and behavior, enabling them to tailor product offerings and marketing strategies as needed.
Conclusion
The convergence of emerging tech, including AI spatial computing, and advanced network technologies presents many opportunities for retailers to innovate and differentiate themselves in the competitive market.
Over the past year, we’ve seen the impact of integrating tech within the retail sector. This includes the introduction of palm-to-pay technology, enhanced in-store payments innovations, and how smart shopping carts are taking over the grocery aisles. Continued advancements will be critical in delivering relevant and personalized experiences that meet the expectations of today’s consumers.