Retail Giants Turn Store Shelves into AI-Powered Data Centers

A quiet revolution is taking place in retail, as companies like Coca-Cola and AB InBev are leveraging AI to scan store shelves and gather data on inventory levels. This shift was observed firsthand by a shopper who noticed a merchandiser using a system called AI Merch to capture images of the shelves.

AI Merch's software uses image recognition to read what's on the shelves, including prices, facings, and missing SKUs. According to its founder Anna Vladymyrska, the goal is to map the stores, not replace the sales reps or managers.

This technology is not unique to AI Merch, as several other companies are working in this space. Trax, for example, has partnered with private equity firm Gemspring Capital and claims that 30 of the top 50 CPG companies use its image-recognition business. Other players include Repsly, Storesight, Zebra Technologies, and Simbe Robotics.

The data collected by these systems is crucial in reducing inventory distortion, which can cost companies billions of dollars annually. According to IHL Group figures, $1.77 trillion in global inventory distortion exists, with approximately $690.9 billion attributed to empty shelves.