This article is brought to you by Tote.ai.
Artificial intelligence is a driving force in technological innovation. New AI solutions are rapidly appearing on the market, but AI offers both opportunity and risk, said Shyam Rao, founder and CEO of Tote.ai. “Choosing the right AI platform can accelerate growth like never before, while choosing the wrong tool for your business can create complex implementations that don't deliver results.”
So is now the right time to up your AI investment? Rao noted that retailers who adopt AI early can build establish competitive advantages that become increasingly difficult to overcome as the technology develops. Additionally, he said that customers will be drawn to those retailers that offer a well-crafted digital experience. “There are new customer expectations for speed, convenience and personalized experiences. Stores that deliver AI-powered convenience and intelligent recommendations position themselves as forward-thinking, while competitors feel outdated by comparison.”
AI, Rao explained, can give retailers the ability to create a great customer experience through “unprecedented insights” into customer behavior patterns with real-time data analysis. “Retailers can begin to understand when customers typically convert from fuel-only to combination purchases, what products drive basket growth and which promotional strategies resonate with different customer segments,” he said.
Specifically, predictive analytics allows retailers to use data to anticipate customer needs. Modern AI tools like Tote.ai use past purchase history and current context—time of day, location, weather etc.—to help retailers suggest complementary items or recommend promotions.
“AI is transforming convenience stores by creating smart, contextual interactions that feel natural rather than intrusive. AI-powered systems can be proactive, creating opportunities for engagement as early as the forecourt when customers choose to interact,” he said.
For example, Rao said that with Tote.ai, customers can tap or scan their phones at the fuel dispenser, bringing up the Tote.ai consumer AI Agent that can deliver personalized offers to the customer. “What's transformative is that these interactions flow seamlessly from forecourt to checkout. A customer can add a breakfast sandwich to their cart from their phone while filling up their tank but also pick up an energy drink once inside the store and pay for both at the register,” Rao explained.
He noted that personalized recommendations can improve customer retention and visit frequency. “When customers receive relevant offers and recommendations rather than generic promotions, they're more likely to view a location favorably and return more frequently.”
This is part one of a two-part series brought to you by Tote.ai. Look for part two this Thursday.