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Happy Friday! For anyone who missed it, I strongly recommend you check out the latest episode of New Frontier. We spoke with the amazing Vanessa Hung about so much AI x Amazon (my head is still spinning from all the insight). Check it out below.

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AI Enters Physical Retail

The lines between physical and online commerce have started blurring more and more especially with the way AI is shaking up the space.

Sam's Club, the bulk retailer owned by Walmart, is set to implement artificial intelligence-powered technology at all of its nearly 600 stores by the end of the year. The new technology, which confirms members' purchases as they exit the store, aims to streamline the checkout process and reduce wait times.

The AI-powered verification technology, first unveiled at the Consumer Electronics Show in January, has already been deployed at 120 Sam's Club locations across the United States. The retailer reports that more than half of the customers at these stores have used the option, resulting in a 23% faster exit time.

By replacing physical receipt checks with AI technology, Sam's Club hopes to address a common pain point for customers: long wait times at the exit, especially during busy periods. The new feature also integrates with the Sam's Club Scan and Go app, which allows shoppers to ring up and pay for their orders as they shop.

After customers complete their checkout at a register or through the app, they can exit through specially designed blue gateways equipped with cameras and scanners. These devices take an inventory of the products in the customers' carts and compare them to their orders, confirming that all items have been paid for.

The implementation of this technology also allows exit greeters, who were previously tasked with checking receipts, to focus on other tasks and assist customers in different ways.

Sam's Club's nationwide rollout of AI-powered checkout technology represents a significant step forward in the retail industry's adoption of artificial intelligence. While other retailers have implemented scan-and-go apps and Amazon has been expanding its "Just Walk Out" technology, Sam's Club claims that its deployment is the largest-scale implementation of member-facing AI-powered technology in the retail sector.

As more retailers explore the potential of AI to enhance the shopping experience, reduce costs, and improve efficiency, it is likely that we will see an increasing number of stores adopting similar technologies in the near future.

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