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How can AI Technology Drive Retail Risk Management in SA

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The retail industry in South Africa is currently grappling with significant challenges, particularly as consumers experience economic strain following festive season spending. This environment has led to an increase in risks such as shoplifting and fraud, making robust risk management more critical than ever.

Ares-i, Xpert Decision Systems’ (XDS) breakthrough AI-powered facial recognition software, was released in 2024 and has since demonstrated its capacity to improve risk management in the retail sector. As organizations face increasing challenges in a turbulent economic climate, Ares-i is an indispensable tool for proactively identifying, assessing, and managing threats to operational stability and customer satisfaction.


“Ares-i has been pivotal in shaping how retailers approach risk management,” said Vic Esterhuizen, Product Owner at XDS, a division of Mettus. “In a climate where threats continuously evolve, our platform empowers retailers to anticipate and respond to risks effectively, allowing them to focus on what matters most—their customers.”

Ares-i allows businesses to seamlessly integrate advanced AI technology with existing surveillance systems, improving their security framework. Ares-i provides real-time analytics powered by powerful algorithms, allowing shops to spot possible dangers before they escalate. This proactive approach keeps retailers one step ahead of criminal activity and aids in the creation of comprehensive watch lists of suspicious individuals.

In addition to addressing security threats, Ares-i prioritizes customer relationships by recognizing and safeguarding loyal customers; the platform enhances the overall shopping experience. Retailers can also establish databases of identified criminals and set up real-time alerts to ensure rapid response to suspicious activities.

 Recent trends in fraudulent activities—including payment scams and the rise of ‘dine-and-dash’ incidents in restaurants—highlight the increasing need for stronger security measures. XDS acknowledges this urgent requirement and is committed to supporting retailers in combating these challenges.

The South Africa Artificial Intelligence in Retail Market size is expected to grow at a significant CAGR of 43.3% during the forecast period. AI technology helps retailers to analyze customer data and provide services according to customers’ expectations.

One of the most compelling opportunities AI offers is hyper-personalization. According to research, 80% of consumers are more inclined to make a purchase from a company that provides personalized experiences, while developing customized recommendations can increase sales by up to 20%.

The e-commerce sector continues to thrive. Projections indicate that e-commerce users in South Africa will surge from 11.7 million in 2025 to 21.25 million by 2029. This growth is being driven by the rise in smartphone use, social media marketing, and dedicated shopping apps. Retailers embracing this digital shift are well-positioned for future success. Integrating Ares-i into an e-commerce application would enhance the security of the application, reduce risk, and facilitate the user experience.

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