RETHINK Retail has published an article authored by MediaTek's CK Wang, VP & GM of the IoT Business Unit.
Retailers have been dipping their toes into AI with pilot runs to measure the effects; now they are switching to full-scale execution. As shoppers demand real-time, highly relevant experiences, cloud-based AI shows its limits. In parallel, edge devices have become more capable, so increasingly intelligence is moving inside physical stores, into devices, where real-time data and local decision-making can drive immediate impact.
Edge AI is shifting retail from reactive to predictive. Smart shelves, computer vision, and predictive replenishment systems dramatically improve inventory accuracy, which can fall as low as 70% without automation. By processing data the moment it’s generated, edge AI helps eliminate shelf gaps, reduce missed sales, and streamline restocking.
Across operations, AI-powered forecasting and real-time visibility are cutting stock-outs while keeping lean inventory levels, reducing carrying costs. On the customer side, edge-based language models and adaptive digital signage enable more natural, personalized in-store interactions, without relying on cloud connectivity that can potentially risk exposure of personal / competitive data. Early results show meaningful gains in engagement and conversion.
Beyond inventory and engagement, edge AI is also optimizing the store environment itself, from energy usage and foot traffic to safety monitoring. Together, these capabilities deliver greater accuracy, efficiency, and responsiveness at every point in the store.
