Standard AI, a San Francisco-based artificial intelligence company, made a momentous announcement today regarding its pivot from autonomous checkout systems to providing computer vision analytics solutions for retailers. This strategic change has propelled the company’s valuation to a remarkable $1.5 billion. In the wake of this transformation, COO Angie Westbrock has been promoted to the position of CEO, while SVP of Technology Strategy David Woollard has assumed the role of CTO. The new suite of products offered by Standard AI aims to provide retailers with valuable insights into shopper behavior, optimize merchandising strategies, reduce out-of-stock items, and prevent loss, all without resorting to facial recognition or collecting personally identifiable information.
Established in 2017, Standard AI initially embarked on a mission to make fully autonomous checkout systems a widespread reality. However, the technology failed to achieve mass adoption, primarily due to high costs and slower than expected consumer uptake. Angie Westbrock expressed, “Autonomous checkout just hasn’t taken off to mass market scale. While infrastructure and computing costs have posed some barriers, the primary challenge has stemmed from slower than anticipated shopper adoption, resulting in low returns on investment.” Despite these setbacks, Standard AI recognized the broader applications of the advanced AI models developed for autonomous stores, which offer up to 98% accuracy in tracking individual products and shopper actions.
The revolutionary vision analytics products introduced by Standard AI leverage its existing “autonomous tech stack” to deliver real-time insights for retailers without the necessity of a fully autonomous setup. These products provide detailed data on shopper movement, product interaction, out-of-stock detection, and even potential lost sales due to items being out of stock. This level of information is akin to the impact Google Analytics had on e-commerce, unlocking valuable insights into shopper behavior and preferences that were previously unavailable. By partnering with Google Cloud and other key players, Standard AI ensures the accessibility of this AI-driven future for retailers.
Standard AI’s pivot places it in direct competition with major retail analytics providers such as IBM, Oracle, SAP SE, Salesforce, and others. However, the company’s unique selling points lie in its full-journey tracking capabilities and high precision AI models, honed through years of developing autonomous systems. Angie Westbrock emphasized the importance of data accuracy by stating, “the only thing worse than no data is bad data,” underscoring Standard AI’s commitment to data fidelity. This strategic shift comes at a time when retailers are increasingly adopting data-driven strategies to stay competitive in the digital commerce landscape.
As the retail sector’s investment in artificial intelligence is projected to soar to $29.45 billion by 2028, Standard AI’s focus on individual product tracking and shopper interactions sets it apart from competitors reliant on more generalized foot traffic data. This granular level of data empowers retailers to optimize store layouts, product placements, and inventory management in unprecedented ways. Moreover, Standard AI’s shift reflects the challenges faced by startups aiming to develop full-scale autonomous retail solutions that can effectively replace traditional checkout processes.
Amazon’s foray into autonomous retail with its “Just Walk Out” technology highlights the industry’s hunger for innovation in this space. Nevertheless, startups like Standard AI, pivoting towards vision analytics tools, offer a more practical path to commercialization and growth. This move by Standard AI is anticipated to prompt other autonomous retail tech developers to reevaluate their strategies. Despite the transition, Standard AI remains optimistic about the transformative power of AI in physical retail, viewing it as the cornerstone for building the infrastructure of the future. Angie Westbrock aptly remarked, “This is really about building the infrastructure for the future.”
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