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The rise of shopping in the U.S. has motivated retailers to fight back. But how has this impacted the crisis combination? And what is the role of AI in this new development?
The Council on Criminal Justice reports a significant increase in shoplifting incidents across the U.S., with a 24% rise in cases. Nearly four out of five stores in the U.S. lose about $500 to $2,500 a month to shoplifters, according to a new survey.
This trend has pushed retailers to adopt cutting-edge technology, notably artificial intelligence (AI), to protect their inventory. The financial toll of theft has ballooned to $94.5 billion in 2023, up from $69 billion in 2019.
AI Revolutionizes Retail Security
Traditional security measures, such as cameras and on-site personnel, have proven inadequate against increasingly sophisticated shoplifting tactics, particularly those used by organized retail crime (ORC) groups.
AI offers a proactive solution, analyzing real-time behavior to identify suspicious activity and alerting staff before theft occurs. This enables retailers to stay one step ahead of potential threats.
In Detroit, where shoplifting has become particularly problematic, many retailers have turned to AI solutions to protect their assets.
One such tool is developed by AI startup Veesion, which enhances existing security cameras with AI systems that monitor and analyze human gestures. By detecting subtle cues that often go unnoticed by the human eye, Veesion’s algorithms identify potential security threats, empowering retailers to take proactive measures.
These AI systems are designed to detect signs of potential shoplifting, such as customers lingering in areas with high-value items or repeatedly entering and exiting the store without making a purchase. By identifying these patterns early, AI allows retailers to take swift action, reducing the likelihood of theft and minimizing losses.
The Challenges of AI Implementation in the Retail Sector
According to a recent study, 80% of shoppers want retailers to seek explicit consent to use their data for AI.
Retailers must carefully balance the need for enhanced security with the responsibility to protect customer privacy, requiring clear communication and transparency about how AI systems are used.
This balance is crucial as retailers increasingly turn to AI to address the growing problem of shoplifting. Despite challenges, reports indicate that AI adoption in retail is expected to continue growing, driven by high shoplifting rates and the need for innovative solutions.
As retailers seek to protect their assets, AI is emerging as a key tool in preventing theft. Experts predict that AI will complement existing security measures, such as surveillance cameras and security tags, to provide a more comprehensive approach to retail security. By leveraging AI, retailers hope they can stay ahead of potential threats and ensure their long-term success.
