Data protection concerns about AI powered till-free checkouts

Retailers will be able to hold an unprecedented level of in-depth data on consumers through the use of cameras and sensors, including their personal details and the mapping of their shopping habits from when they enter the store, to when they leave. Data breaches are becoming increasingly common, and a data breach on this scale could spell a PR disaster for any targeted firm.

Hakan Demirci, Consumer Analyst at GlobalData, commented: “If retailers can navigate through the potential data protection issues that are likely to arise, till-free checkouts using AI will offer companies another point of differentiation. Sainsbury’s and Tesco have been focusing on small scale, locally-tailored stores for some time which aligns with the successful models of both Lidl and Aldi, who both grew sales by ten and 15.1% respectively last year. The addition of till-free checkouts in these stores offers a further point of differentiation against the discounters.”

Sainsbury’s and Co-op are focusing on till-free technology that requires user input through a consumers’ smartphone. Tesco (following the example of Amazon Go) is seeking to implement AI driven till-free technology, using an amalgamation of sensors and cameras to detect when consumers have purchased a product from the store. 

A 2017 GlobalData consumer survey which saw 75% of global consumers either completely or somewhat agreeing that technology has made their lives easier certainly seems to validate these moves. 

Demirci added, “Despite the fanfare of Sainsbury’s new till-free store in Holborn, GlobalData’s audits of the store this year suggests that shopper footfall is lower than we would have anticipated perhaps suggesting that consumers need more convincing on the benefits of scanning their own products on the go as opposed to using self-checkout.’’ 

Ultimately, AI powered till-free checkouts in convenience store formats will be the main point of focus for the major retailers in the near future.