Don’t let the A.I. revolution start without you

By Joseph Dobrian, Contributing Editor

Artificial Intelligence (A.I.) will probably boost retail sales of furniture dramatically in the next few years, according to those who watch the technology closely.

As the technology develops, it will almost certainly conduce to quicker purchasing decisions, greater buyer satisfaction and less post-purchase regret. It’s also likely to cut down the store space needed for product display, making the staging and displaying processes more varied and efficient.

A.I.’s role in furniture design ranges from initial conception to the manufacturing process; it could result in almost unimaginable customization possibilities. Designers also can analyze an almost infinite number of existing designs, to predict customer responses. A.I. might also be used to reduce wasted effort and materials in the manufacturing process and improve the overall quality of the product.

One possible concern is that it might take customers a while to fully accept A.I. Customers will always want to touch a piece of furniture, sit or lie on it. But before long, most customers will feel comfortable using A.I. at least to pre-shop, to develop a short “want” list. And they might, thanks to A.I., end up happier, for longer, with whatever furniture they buy.

Implementing in e-comm

Alex Back, CEO of Couch.com, reports that he spent the better part of 2023 immersing himself in A.I. technology and has used it in many different ways in the building of his company, which he calls “the Match.com of couches.

“Artificial Intelligence is incredibly important to retail, especially furniture retail, because it offers consumers much easier access to information than they had before, thereby reducing the need of the retailer to provide or spoon-feed it to them,” Back said. “Furniture is an industry that the typical consumer knows very little about, and its details and specifications can often mystify shoppers. This can create a level of buyer discomfort that is not very conducive to fast conversions.

“Typically, retailers have had to do a lot — at all stages of the sales funnel — to educate consumers about their products and services,” he continued. “Their salespeople have to spend considerable time with most customers prior to placing the order. With the emergence of A.I. filling in knowledge gaps and providing more direction to shoppers, salespeople should have to do less selling to achieve conversion.”

A.I. provides an array of visualization tools, reducing the need for large retail footprints in the furniture space, Back added. His company is building an A.I.-powered quiz that can conversationally interact with customers to gather all the information necessary to point them toward their eventual new couch.

“From pricing to comfort to size and timing, A.I. can address all sorts of key variables at the start of a shopping experience to better equip both shoppers and retailers for a smooth and speedy sale,” he id “We’ve also seen retailers using A.I. for visualization tools, both online and in showroom. They have 3-D room planners with actual for-sale furniture products, such as through the app Realize Design, and visualization tools such as Wayfair’s Decorify.

“Buyers, meanwhile, are using A.I. tools to aid in data analysis and forecasting in a time where inventory planning is more important than ever.”

The process of merchandising furniture is often a gamble, Back noted, and buyers will probably use A.I. to leverage data more effectively.

A.I. has augmented a store’s ability to analyze its own collected data. When it comes to third party data, answers to questions like “What are the most popular styles of couch being viewed online?” are much more readily available, giving furniture retailers much greater access to information on trends and the industry at large.

Back suggests that the biggest improvement A.I. might see with regard to the furniture business is probably in the visualization category. About 80% of furniture sales are made in traditional brick-and-mortar settings, he said, and most consumers still need to touch, feel and see furniture in person prior to making a purchase. However, the better online visualization tools become, the faster the e-commerce space is likely to grow.

“We’re using A.I. tools to remove a lot of the guesswork at the front of the shopping process,” he said. “A.I. can recommend local brick-and-mortar retailers that might be the most likely to have what a given customer is looking for before they even get in the car to drive to the shopping center.”

‘Boundless’ potential

Beck Besecker, CEO and co-founder of 3D Cloud by Marxent, describes the potential of A.I. as “boundless.” Many furniture retailers he works with are already evaluating the potential for A.I. across all aspects of their businesses.

“From supply chains to employment models and customer experience to customer care, investing early in A.I. can offer retailers a competitive edge,” Besecker said. “In terms of product visualization, we’re working on applications like A.I.-enabled configuration processes that make self-service possible for configurable seating and semi-custom furniture and auto-layout for room design. These are huge opportunities for retailers to improve the customer experience and reduce ordering errors without adding headcount.

“A.I. is going to continue to democratize personalization and customization, making design services more accessible to a greater number of shoppers. Combined with 3-D visualization and room planning, A.I. will make selling whole rooms easier for consumers at all price points.”

At Ashley Furniture Inds., CEO Todd Wanek noted that manufacturers, too, are using A.I. in various ways. He says his A.I. team has identified more than 200 applications for A.I., some of them already deployed and others about to come online.

“Over the past 18 months,” he said, “we have massively focused on AI. We made substantial improvements to our business in 2023. Compared with three years ago, the progress we have made is exponential, and we are now much more focused on leveraging A.I. in our operations.

“We have defined a budget for future investments in A.I. technology and education within our company,” Wanek added. “This investment is significant as it aims to enhance our capability within the organization. Each investment is carefully evaluated based on its payback and the added value it brings to our teams.”

Wanek foresees that A.I. will have the greatest and most immediate impact in customer service, logistics, e-commerce, marketing and sales (in terms of enhancing direct customer engagement and interaction). But, he said, every department and area of his company will be impacted by A.I.

‘Fundamental shift’

A Silicon Valley entrepreneur and author, Christoph Burkhardt, founder of The Burkhardt Group, agrees that A.I. is becoming crucial in the furniture retailing sector.

It’s a game-changer in several aspects, he said, from design innovation to customer engagement. A.I. enables the “segment of one” approach to retailing, which focuses on ultra-personalization, catering to individual customer preferences.

“This shift is particularly significant as the furniture industry, which traditionally has relied on mass production,” Burkhardt noted. “Furniture is now moving toward individualized design and manufacturing. A.I. tools are collaborating with designers to create unique pieces, blending human creativity with machine efficiency.

“A.I.’s data analytics capabilities are providing more accurate predictions of furniture trends, leading to a more diverse range of products that cater to rapidly changing consumer tastes. Thirdly, A.I. algorithms analyze customer data to tailor marketing efforts, ensuring that customers receive relevant product recommendations.”

Advanced furniture retailers are already leveraging A.I. in several innovative ways, Burkhardt noted. Some are using A.I.-powered design tools that allow customers to visualize furniture in their own space before purchasing. A.I.-driven chatbots and virtual assistants are being used for customer inquiries, providing quick and personalized responses. Also, A.I. can optimize inventory management and logistics, ensuring efficient delivery and reducing waste.

“For example, Ikea uses A.I. to power its augmented reality (AR) app, allowing customers to visualize how furniture would look in their homes,” Burkhardt said.

“Future advancements in A.I. could lead to more sophisticated personalization and sustainability in the furniture industry. We might see A.I. systems capable of designing furniture based on specific ergonomic and aesthetic needs of individual customers. Additionally, A.I. could further optimize supply chains, making them more sustainable and reducing the industry’s carbon footprint.”

In retail generally, Burkhardt expects A.I. will revolutionize customer experience, supply chain management and trend forecasting. Specifically for furniture retailing, he said, A.I. will play a pivotal role in design, enabling more collaborative and innovative design processes.

In manufacturing, the advent of A.I. will lead to more efficient, sustainable and personalized production processes. Enhanced by A.I., the customer experience will become more immersive and personalized, he said, with tools like virtual reality and augmented reality (AR) playing a significant role.
“A.I. is not just an addition but a fundamental shift in the furniture industry, driving innovation and personalization to new heights,” Burkhardt added.

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