Artificial Intelligence (AI) has taken the world by storm and has even started knocking on the flooring industry’s door. And—ready or not—it’s going to start having a major impact on your ability to stay competitive.
Flooring software providers within the flooring industry, in particular, have been touting the importance of AI, some already utilizing the technology in the products they provide while noting the constant state of evolution it is undergoing. With that comes the opportunity for the retail community to take the reins and stay ahead of the game as AI promises to change the face of operations across all sectors of business.
“I think AI is that next evolution,” noted Carole Cross, managing director, Cyncly. “Honestly, the emergence of the internet was fast—this is going to be even faster. It’s going to have a deeper impact and you’re going to have it running your business. I know it’s crazy, but if you think about how smart AI is going to be across everything—data, insights, experience, marketing—it’s exciting. I think a lot of innovation is going to come in this space.”
Pawel Rajszel, CEO of Roomvo, agreed, simply noting: “Those who use AI will outperform those who do not. It’s simply a must. Don’t get left behind.”
But what exactly are we talking about when we talk AI and its ability to make or break your success? Currently, there are three categories in which applicable-AI falls: generative, conversational and predictive. Each one of these subfields represents distinct applications and functionalities within the broader AI domain. In terms of application, experts agree each of these subfields can elevate customer experiences and enhance business operations.
Roomvo, for example, has been utilizing proprietary generative AI technology since day one. “Our award-winning visualizer leverages proprietary AI to produce the most realistic renderings in the home décor industry,” Rajszel explained. “In turn, this drives meaningful results for our customers, who leverage Roomvo to instill confidence in the end consumer.”
Companies like Smith.ai, a call answering service, utilizes conversational AI to help retailers perform tasks that may be cumbersome on the front end but have major impacts on final sale numbers. “We have a 99.7% accuracy rate on calls and handle nearly 100,000 calls/week,” explained Maddy Martin, SVP of growth. “We handle far more complex calls than anyone else. Many of our clients left other providers who could not handle the call logic and depth of information they require.”
What’s more, Smith.ai integrates with ERP systems, automatically updating the system after every call, eliminating manual data entry. “We have 5,000-plus integrations,” Martin noted. “For flooring retailers, all of this adds up to more time available for major high-impact projects, team leadership and business planning. Not to mention, better work/life balance.”
But perhaps the most exciting aspect of AI is still in the potential of predictive AI. This is where the technology will leverage data-driven insights to achieve unprecedented results, such as predicting profitability, optimizing cash flow and increasing conversion rates, to name a few.
Which AI subfield are you currently utilizing, and which will you look to implement?
Generative AI
Generative AI refers to a subset of AI technologies that focus on creating new content, such as text, images, audio, video or other data, based on patterns learned from existing data. Generative AI is revolutionizing how we create and interact with content, offering limitless possibilities across industries while raising important questions about its responsible use.
Key features:
- Learning from data: Generative AI models are trained on large datasets to understand patterns, styles and structures.
- Content creation: These models can produce coherent and contextually relevant content in various formats, such as text, images or music.
- Customizability: Generative AI can create tailored outputs based on specific user prompts or inputs, enabling high levels of personalization.
Relevant applications:
1. Text generation:
- Writing articles, stories, poetry or summaries (e.g., ChatGPT).
- Drafting code or technical documentation.
2. Image generation:
- Creating realistic or artistic images from textual descriptions (e.g., DALL·E).
- Enhancing or editing images with AI tools.
3. Audio and music:
• Producing music compositions or voiceovers.
• Generating synthetic voices for virtual assistants or entertainment.
4. Video:
• Crafting animations or deepfake videos.
• Editing or enhancing video quality automatically.
5. Design and prototyping:
• Generating layouts, product designs or architectural drafts.
Benefits:
- Creativity boost: Assists professionals in brainstorming, prototyping or producing innovative work.
- Efficiency: Saves time by automating repetitive or resource-intensive creative tasks.
- Accessibility: Enables users without specialized skills to create professional-quality content.
Conversational AI
Conversational AI refers to technologies that enable machines to understand, process and respond to human language in a natural and meaningful way. Conversational AI transforms how businesses and individuals interact with technology, creating seamless, engaging and human-like experiences.
Key features:
1. Natural Language Processing (NLP):
- Natural Language Understanding (NLU): Helps the system interpret the intent and meaning behind user input.
- Natural Language Generation (NLG): Allows the system to craft coherent and contextually relevant responses.
2. Machine Learning (ML):
- Conversational AI systems learn from interactions to improve their accuracy and adaptability over time.
3. Speech Recognition and Synthesis (for voice-based systems):
• Converts spoken words into text (speech-to-text) and generates spoken responses (text-to-speech).
4. Dialogue management:
• Ensures smooth, context-aware conversations by tracking the flow of interaction and maintaining context.
Relevant applications:
- Customer support: Chatbots and virtual assistants provide 24/7 support, answer FAQs and resolve basic queries.
- Personal assistants: Tools like Siri, Alexa and Google Assistant help users manage schedules, play music and perform tasks.
- Ecommerce: Virtual agents guide shoppers, recommend products and facilitate transactions.
Benefits:
- Scalability: Handles numerous simultaneous interactions efficiently.
- Availability: Provides instant responses anytime, reducing wait times.
- Personalization: Adapts to individual users’ preferences and contexts for a better experience.
- Cost efficiency: Reduces the need for extensive human intervention in repetitive or straightforward tasks.
Predictive AI
Predictive AI refers to the use of AI technologies to analyze data, identify patterns and make forecasts about future outcomes or trends. By leveraging predictive AI, organizations can make data-driven decisions, reduce risks and optimize processes, making it a powerful tool across industries.
Key features:
- Data analysis: Predictive AI processes large volumes of historical and real-time data to identify patterns or correlations.
- Model training: Machine learning algorithms are trained on historical data to learn the relationships between variables.
- Prediction: Once trained, these models can forecast outcomes, such as customer behavior, demand for products, or potential equipment failures.
- Continuous learning: Many predictive AI systems use real-time feedback to refine their models, improving accuracy over time.
Relevant applications:
- Business: Forecasting sales, inventory management, customer churn prediction and optimizing marketing campaigns.
- Finance: Fraud detection, credit scoring and stock market trend predictions.
- Manufacturing: Anticipating equipment maintenance needs to reduce downtime.
- Personalization: Recommending products, content or services tailored to user preferences.
Benefits:
- Demand forecasting: Helps optimize inventory levels, reduce overstock or stockouts and improve cash flow.
- Personalized product recommendations: Increases conversion rates and average order value by showing customers flooring options they are more likely to purchase.
- Pricing optimization: Maximizes profit margins while remaining competitive in the market.
- Inventory management: Streamlines supply chain operations and minimizes storage costs.
- Customer renention/churn: Identify customers who are at risk of not returning and create targeted marketing campaigns to retain customers.
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