Revolutionizing Retail – The Power of AI, Vision Language Models and Ethical Innovations

The retail industry has been at the forefront of adopting AI to transform customer experiences, streamline operations and drive growth. From personalized shopping recommendations to inventory optimization, AI has already made a significant impact. However, one of the most exciting advancements in this space is the rise of video analytics and Vision Language Models (VLMs) – models that enable retailers to extract actionable insights from videos. As video continues to emerge as a powerful medium for data, its role in shaping the future of retail cannot be overstated.

Building on the transformative potential of AI in retail, Infosys has developed a comprehensive AI and Gen AI blueprint tailored specifically for retail organizations. This blueprint is the result of an extensive study of the retail value chain and identifying opportunities where AI-driven solutions can deliver maximum impact. By mapping out critical touchpoints, we have proposed a wide array of use cases—ranging from consumer behavior analysis and dynamic pricing to predictive inventory management and loss prevention. This structured approach empowers retailers to adopt AI strategically.

Retail Blueprint (Video Analytics)

Fig: Out curated list of Video analytics-based use cases across retail value chain

Unlocking Retail Insights with Vision Language Models

A key component of our AI-driven strategy is the application of VLMs in the retail industry. These models, which combine the power of computer vision and natural language processing, unlock new dimensions of insight by interpreting video data alongside contextual information. Retailers can use VLMs for advanced use cases such as real-time shelf monitoring, customer sentiment analysis, and fraud detection.

Recognizing the immense potential of this technology, Infosys has created a specialized blueprint for VLMs as a subset of our overall AI and Gen AI blueprint. This tailored framework enables retailers to harness the capabilities of VLMs with precision, addressing industry-specific challenges and opportunities.

VLM for Loss Prevention

We are collaborating with NVIDIA and other partners, utilizing their VLMs and large language models (LLMs) to develop a solution that tracks consumer and employee behavior to prevent stock loss and related shrinkage.

By analyzing patterns and identifying anomalies, this solution aims to proactively detect and prevent stock loss and related shrinkage. This initiative not only enhances operational efficiency but also ensures a safer and more secure retail environment.

Enhanced Insights with Visual Agents

Realized with the help of Vision Language Models (VLMs), allow store personnel or managers to interact with visual agents using natural language. These agents can comb through visual content to extract valuable insights and present them in an easy-to-understand natural language format. This, along with the ability to handle large scale of video streams, which impacts retail efficiency, will enable retailers to engage with in-store video feeds and obtain contextually enriched insights.

Ethics and Data Privacy Considerations

Despite the tremendous potential of video analytics in retail, retailers must navigate concerns around data privacy, potential biases in AI algorithms, and the secure storage of sensitive video data. Striking the right balance between leveraging technology and safeguarding consumer trust is critical. Establishing robust guardrails—such as adhering to strict data privacy regulations, implementing bias mitigation strategies and fostering transparency in data usage—can help ensure that video analytics is used responsibly.

The Exciting Future of Vision Language Models

The future of retail with advancements in VLMs holds transformative possibilities. As these models become more sophisticated, they will enable deeper and more nuanced understanding of visual and contextual data, opening doors to hyper-personalized shopping experiences, autonomous store operations, and predictive consumer insights.

Imagine stores equipped with intelligent systems that not only track inventory in real-time but also anticipate customer needs based on their behavior and preferences.

Future VLMs could also seamlessly integrate with augmented reality (AR) to create immersive shopping experiences or with robotics to revolutionize in-store logistics. As these advancements unfold, VLMs will continue to reshape the retail landscape, driving innovation and setting new benchmarks for efficiency and customer engagement.

At the Forefront of AI and VLM Innovation

A crucial aspect of Infosys' AI-First strategy is the integration of Infosys Topaz in the realm of VLMs. Infosys Topaz, an AI-first set of services, solutions, and platforms designed to accelerate business value using Generative AI technologies, with its advanced capabilities, facilitates the adoption of VLMs.

As video analytics and VLMs continue to evolve, they are redefining the possibilities within the retail industry. From enhancing operational efficiency to mitigating losses and improving customer experiences, the potential applications are vast.

Infosys has made significant investments in the video analytics space, exemplified by the Infosys Video Analytics Solution and strategic partnerships with industry leaders like NVIDIA. With these capabilities, Infosys is poised to offer a comprehensive suite of services not only to retailers but also to other industries such as manufacturing, oil and gas, utilities, and many others. In these sectors, video analytics can revolutionize business operations and solve complex customer problems.

By combining innovation, strategic investments, and ethical practices, we are set to lead the transformation with VLMs and video analytics, empowering businesses across various domains to thrive in a competitive landscape.

Authored by:

Balakrishna D. R. (Bali), Executive Vice President, Global Services Head, AI and Industry Verticals, Infosys

With Contribution from:

Yash Vardhan Garg, Senior Product Manager, Infosys
Santhosh Subramaniam, Associate Vice President and Senior Industry Principal, Infosys
Guruprasad NV, Associate Vice President and Senior Principal Technology Architect, Infosys