Artificial Intelligence (AI) is revolutionizing the retail industry, introducing smarter pricing, inventory, and customer experience solutions. Monika Shrivastav, the Edelman Laureate Medal recipient for her pioneering work on AI-driven dynamic pricing, offers insights into the top trends reshaping retail. Drawing on her experience leading large-scale AI implementations at Walmart, she highlights how these technologies create business opportunities to thrive.
1. Dynamic pricing for competitive edge
Dynamic pricing transforms retail by enabling real-time price adjustments based on market trends and consumer behavior. Monika Shrivastav spearheaded the development of a multi-objective price optimization framework at Walmart, using reinforcement learning to refine markdown strategies. She explains, “The ability to align pricing with real-time demand creates measurable value, helping retailers remain competitive while meeting customer expectations.”
Her award-winning work improved profitability and set a benchmark for how AI can integrate seamlessly into retail operations.
2. Omnichannel merchandising
AI revolutionizes omni channel merchandising by seamlessly connecting physical and digital retail channels through techniques like machine learning and computer vision. At Walmart, Ms. Shrivastav led the efforts that analyzed customer behavior across various channels, and used AI to connect them all to ensure Walmart has the right assortment at the right place at the right time. She explains: “AI weaves together all the shopping channels into one seamless experience on mobile, shop in-store, or use pickup services.”
3. Streamlined inventory management
Accurate inventory forecasting and efficient supply chain management are critical for modern retailers. AI systems can predict demand with remarkable precision by analyzing historical sales data and market trends. During her tenure at Walmart, Monika Shrivastav implemented AI tools that reduced overstock and minimized stockouts, significantly improving operational efficiency.
She emphasizes, “AI enables businesses to optimize inventory levels and streamline supply chain processes, ultimately reducing costs and improving customer satisfaction.”
4. Enhanced supply chain resilience
AI is also addressing challenges in supply chain logistics, offering real-time solutions to disruptions caused by weather or market volatility. Monika Shrivastav highlights how AI tools can provide dynamic rerouting, prioritize shipments, and forecast potential bottlenecks. At Walmart, she led efforts to integrate AI into supply chain decision-making, ensuring timely deliveries and maintaining customer trust.
“AI-driven insights are essential for building a resilient supply chain that can adapt to unexpected challenges without compromising service quality,” she explains.
5. Augmenting replenishment with local fulfillment networks
AI revolutionizes replenishment by intelligently orchestrating local fulfillment networks through real-time demand forecasting and dynamic inventory routing. Monika mentions that “by analyzing data from multiple sources – including historical sales, local events, and regional preferences – AI optimizes inventory distribution across fulfillment nodes, from traditional warehouses to micro-fulfillment centers and dark stores, ensuring products are strategically positioned closer to consumers while maintaining optimal stock levels and reducing delivery times”. Adding local fulfillment networks in our replenishment strategy is a game changer as it helps keep the cost down for the end consumer.
Create meaningful connections and deliver value at every step
Monika Shrivastav has demonstrated how AI can transform the retail sector through her innovative projects and leadership. From dynamic pricing to resilient supply chains, her work offers a blueprint for organizations aiming to harness AI effectively. She puts it, “The future of retail lies in using AI not just to optimize operations but to create meaningful connections with customers and deliver value at every step.”
