AI has many beneficial applications to the world we live in, and our point-of-sale systems are no different. AI is set to revolutionize the POS market– read on to find out how.
What is Artificial Intelligence?
Artificial Intelligence (AI) is the term that describes technology mimicking human processing capabilities.
Thanks to science fiction literature and film, by the mid-20th century the concept of artificial intelligence had solidly taken root in the world’s imagination, setting scientists and mathematicians on the path to making AI a reality.
In 1950, Alan Turing introduced the Turing Test in his paper “Computing Machinery and Intelligence.” This test measures a machine’s ability to imitate human-like intelligence. Six years later, a Dartmouth conference coined the term “artificial intelligence” and officially launched the field of AI.
From there, the AI field experienced a tumultuous rollercoaster of advancement and setbacks, but progress ultimately prevailed. In 1997, IBM’s Deep Blue computer program beat chess champion Gary Kasparov in a publicized match.
In 2011, Apple introduced Siri to the iPhone 4S. Now, we interact with AI in many aspects of our day-to-day lives as computers continue to better mimic human intelligence and processing capabilities.
How Does an AI POS System Work?
The future of the POS market is contingent on this cutting-edge technology, as nothing parallels AI’s diverse capabilities and applications to POS systems. POS systems with artificial intelligence not only allow for advanced payment processing and employee management capabilities free from the cost of human labor, but they can help to provide better, more personalized customer experiences as well.
Artificial intelligence has recently become a huge player in the POS market. A key benefit of AI POS systems is the ability to instantly and efficiently handle all kinds of payment methods:
- online payments
- mobile app payments
- chat payments
- social app payments
- in-store payments
Because these POS systems with artificial intelligence rely on advanced technologies instead of human labor, they also eliminate any possible human error and provide a consistent experience every time.
Leaving this repetitive payment processing work to technology means employees have more time to interact directly with customers and can provide a more personalized experience.
Time Management and Scheduling
AI POS systems are also able to handle the complex scheduling tasks that were once time-consuming and overwhelming. They can efficiently manage your employees and their time restrictions, freeing up more time for restaurant operators and increasing overall productivity.
Customer Behavior and Preferences
POS systems with artificial intelligence are able to detect trends in products and sales, offering promotions, upsells and adjusted pricing suggestions as appropriate. They can then automatically track the metrics and return values on these upsells, giving more comprehensive insight into consumer preferences and spending trends.
Self-ordering POS options like kiosks and online ordering that leverage AI have been proven to shorten lines, reduce wait times, and increase sales. AI POS systems can also provide unique insights on the changing behavior of customers and even recommend which customers to re-engage with.
With the tracking and trend analysis capabilities of POS systems with artificial intelligence, new marketing and restaurant promotional endeavors become increasingly more effective. Smart Data Collective even finds that marketing campaigns informed by AI POS systems are up to 20% more effective than traditional, AI-free marketing campaigns!
POS systems with artificial intelligence can even help to eliminate losses by accurately tracking inventory and ordering based on sales and up-to-date supply levels. They can even use this information to inform future restock orders and apply auto-restock capabilities, meaning no more long days spent counting inventory in the stock room.
AI capabilities in the restaurant and retail space are only expanding, and all these elements will continue to improve with time. But what are the next big steps for the evolution of AI in the POS market?
AI and the Future of the POS Market
While there have already been significant advances in AI capabilities, new features are in the works that will soon become commonplace for consumers.
A close next step is facial recognition software in self-ordering kiosks. The future holds promise for facial recognition AI that can identify age, gender, and other aspects that may affect what an individual would order at a specific moment.
Facial recognition can remember a specific person through their profile, recall their recent orders, and make specific suggestions, improving sales and security and providing a more personalized experience.
Nearly half of Americans were using digital voice assistance on their smartphones by 2017, and that number is only continuing to rise. Similar technology will enter the retail and restaurant space soon with conversational ordering kiosks that leverage advanced noise-canceling AI to suppress background noise and understand customers. With this tech, these AI POS systems can communicate with customers at a high (and hands-free) level.
Consumers notably prefer voice-assistant technology, as spoken language often feels most natural. This makes the benefits of conversational AI and its applications in restaurants even more apparent, making clear how revolutionary this technology is set to become.
How Does AI Benefit the POS Market?
While the greatest benefits of POS systems with artificial intelligence are yet to be fully realized, let’s recap the ways in which the POS market is poised to be the next big step in the evolution of AI:
- Quicker task management and scheduling
- Consolidated payment processing
- Less burden on employees
- Elimination of human error
- Better inventory management and supply ordering capabilities
- Comprehensive customer satisfaction tracking and evaluation
The ever-improving nature of AI is an exciting opportunity for the restaurant and retail space. In a survey by Adobe, 31% of businesses said they plan to implement AI in the next 12 months. In order to stay ahead of the competition and create the most efficient and optimal customer experience, merchants must stay on top of the trends, implement AI POS, and continue to track the evolution of AI-powered POS technology.
No current technology can rival the benefits of conversational AI, and it’s clear that the POS market is soon to be reliant on AI. Conversational AI restaurants are the future of the food industry, and we are certain to be better off because of it.