WITH ARTIFICIAL INTELLIGENCE Eric Thorsen, Global Retail Business - PowerPoint PPT Presentation

REVOLUTIONIZING RETAIL WITH ARTIFICIAL INTELLIGENCE Eric Thorsen, Global Retail Business Development

CHALLENGES FACING CONSUMER INDUSTRIES • Millennials outnumber Emergence of new • Baby Boomers digital shopping • “Digital Natives” demand experiences changing experience Emergence of device • Demographic Digital proxies Changes Competition Consumer Omnichannel Demand Constraints Specific • • Mobile • Impatient Web • Particular • • Stores 2

AI FOR RETAIL CORPORATE STORE SUPPLY HEADQUARTERS OPERATIONS CHAIN 3

AI ONLINE & IN THE STORE SHELF ANALYSIS, AR/VR CONSUMER TARGETED CONSUMER ADVICE INTERACTION RECOMMENDATIONS 4

RECOMMENDATION ENGINES ON GPU CLOUD SONG TARGETED VIDEO RECOMMENDATIONS RECOMMENDATIONS RECOMMENDATIONS 5

AI IN SUPPLY CHAIN WAREHOUSE DYNAMIC SUPPLY CHAIN COLLABORATIVE PLANNING OPTIMIZATION REAL-TIME RE-ROUTING AND REPLENISHMENT 6

AI AT CORPORATE HQ SINGLE VIEW OF DEMAND SIGNAL AD SPEND PREDICTIVE CONSUMER ANALYSIS OPTIMIZATION ANALYTICS 7

GPU-ACCELERATED ECOSYSTEM PLAN BUY (BUILD) MOVE SELL SERVICE Inventory & Route Assortment Planning Procurement Recommendation Logic Reverse Logistics Optimization CPFR Vendor Management Magic Mirror Returns Management Telemetry Seasonal Promotions Quality Inspection Clienteling Call Center Autonomous Vehicles Optimization and Drones Product Design Manufacturing Path to Purchase Automation Upsell / Cross Sell Demand Driven Supply Open to Buy Frictionless Commerce Network Pro Collaborative Design / Shelf Optimization AR/VR Customer Experience Viz Learning Asst Planning / Forecast & Replenishment NN Consumer Engagement / Recommendation Engine NN Deep CSP , NGC, DGX (Training) CSP , NGC, DGX (Training) TRT (Inference) TRT (Inference) Analytics Video Quality Inspection Loss Prevention, Shopper Tracking, Robotics, Frictionless Commerce GPU Accelerated Applications: Space Planning, Optimization, SAP Leonardo, SAP HANA HPC GRA Accelerated Analytics: Kinetica, MapD, Graphistry, H20 GRID Windows 10 Acceleration / Knowledge worker enablement 8

GPU’S PROVIDE BETTER DATA CENTER TCO 1/6 th the cost 1/20 th the power, 4 racks in a box 160 CPU Servers 1 NVIDIA HGX with 8 Tesla V100 GPU’s 65,000 Watts 3,000 Watts 9

RISE OF GPU-ENABLED COMPUTING GPU-Computing perf APPLICATIONS 1000X 10 7 1.5X per year By 2025 10 6 ALGORITHMS 1.1X per year 10 5 SYSTEMS 10 4 CUDA 10 3 1.5X per year 10 2 Single-threaded perf ARCHITECTURE 1980 1990 2000 2010 2020 Original data up to the year 2010 collected and plotted by M. Horowitz, F. Labonte, O. Shacham, K. Olukotun, L. Hammond, and C. Batten New plot and data collected for 2010-2015 by K. Rupp 10

NVIDIA DEEP LEARNING EVERYWHERE, EVERY PLATFORM CLOUD Everywhere TESLA Servers in every shape and size DGX-1 AI Supercomputing Optimized Deep Learning Software TITAN X PC Development 11 11 NVIDIA CONFIDENTIAL. DO NOT DISTRIBUTE. NVIDIA CONFIDENTIAL. DO NOT DISTRIBUTE.

PERFORMANCE FROM THE DATA CENTER Graphics accelerated virtual desktops and applications All devices have graphics Virtual machines also need a GPU 12 12 NVIDIA CONFIDENTIAL. DO NOT DISTRIBUTE. NVIDIA CONFIDENTIAL. DO NOT DISTRIBUTE.

NVIDIA GPUs EVERYWHERE 120+ Servers from more than 30 system vendors Industry standard servers Hyper Converged Cloud offerings Public Cloud Industry Standard Servers Hyper-Converged Infrastructure Blade Servers Blade Servers 13 NVIDIA CONFIDENTIAL. DO NOT DISTRIBUTE.

Inception Partners – AI Startups in Retail 14

RESOURCES: GTC & DLI GPU Technology Conference 2018 http://www.gputechconf.com/ Retail Breakfast to share best practices and lessons learned Selective Retail Business tracks highlighting AI success Deep dive hands-on sessions to experience AI Customer stories showing success using AI, ML, and DL DLI WORKSHOPS https://www.nvidia.com/en-us/deep-learning-ai/education/ 15 15 NVIDIA CONFIDENTIAL. DO NOT DISTRIBUTE. NVIDIA CONFIDENTIAL. DO NOT DISTRIBUTE.

RETAIL CUSTOMER STORIES October 2017

USPS delivers more than 150 billion pieces of mail each year, a logistics operation that is at a scale second to none. After experiencing increased delays and instances of fraud, USPS needed a different approach to data analytics. Using Kinetica’s GPU-accelerated solution, USPS achieved near-immediate analysis of data from over 213,000 scanning devices at post offices and processing facilities around the country. Last year, USPS delivered 154 billion pieces of mail, while driving 70 million fewer miles, saving 7 million gallons of fuel and preventing 70,000 tons of carbon emissions. 18

RETAIL INVENTORY MANAGEMENT Safety Stock Optimization of safety stock for each store/item Home grown algorithm ported from CPU cluster to GPU Time required dropped from hundreds of days on a single CPU node to a few hours on a single GPU (x4) node. Speed up of approximately 700x Time Forecasting models Hundreds of millions store/item combinations forecast weekly – Multiple models utilized to forecast including Holt-Winter, Arima and GLM. NVIDIA provided a Holt-Winter GPU version specified and integrated by customer. Comparative tests of 8 million store/items showed reduction in time from 15 minutes (across approx. 38 servers) to 24 seconds on 1 GPU (x4) node. GPU version could allow a daily forecast because of speed and scaling abilities. 19

AI IMPROVES THE CUSTOMER EXPERIENCE AI is dramatically changing the online shopping experience with tangible improvements to retailers and consumers. In 2016 online British grocery giant Ocado improved customer service with their AI- enhanced contact center, and is applying machine learning and NVIDIA GPUs to develop humanoid robotics to assist maintenance technicians, and advanced computer vision for image classification and recognition to replace barcode systems. Computer vision will expedite the picking process and better ensure orders are filled correctly so customers receive exactly what they ordered. 20

AI-DRIVEN SMART SHOPPING According to Forrester E-Commerce was a $390B market in 2016 and is expected to double by 2024. E-commerce company Jet.com (acquired by Walmart) partners with multitudes of suppliers with different offerings at different prices. Jet uses GPU- accelerated AI to drive its smart cart solution that fulfills orders at the lowest prices though the smart bundling of supplier offers. The platform finds the ideal merchant and warehouse combination to lower the total order cost. The bigger the shopping cart, the greater the savings that can be generated . 21 21 NVIDIA CONFIDENTIAL. DO NOT DISTRIBUTE. NVIDIA CONFIDENTIAL. DO NOT DISTRIBUTE.

DISCOVER MORE WITH DEEP LEARNING Online shopping can be convenient but searching through multiple websites can be arduous and time-consuming. Pinterest makes it easy for users to quickly discover things they love. Automatic object detection lets users search for products within a Pin’s image, and Shop the Look lets users buy items seen in fashion and home décor Pins. Scientists on Pinterest’s visual search team use GPU-accelerated deep learning to teach their system to recognize image features using a dataset of billions of Pins and compute similarity scores to identify the best matches. One visual search study reports a 50% improvement in user engagement and traffic. 22 22 NVIDIA CONFIDENTIAL. DO NOT DISTRIBUTE. NVIDIA CONFIDENTIAL. DO NOT DISTRIBUTE.

AI TOOL LETS YOU APPLY BEFORE YOU BUY Testing different types of makeup can take hours and be a frustrating experience. ModiFace is using GPUs and facial modeling technology to help consumers explore and select the ideal products. ModiFace developed the ‘Sephora Virtual Artist’, an online tool that allows consumers to virtually experiment with new makeup without having to leave their computer screen. With technology on skin analysis and facial visualization, ModiFace and its AI features have introduced a more efficient way to style oneself. 23 23 NVIDIA CONFIDENTIAL. DO NOT DISTRIBUTE. NVIDIA CONFIDENTIAL. DO NOT DISTRIBUTE.

AI PERSONALIZES SKIN CARE Using the wrong skincare products can be a major cause of customer dissatisfaction so Olay is arming women with the knowledge they need to make informed product purchase decisions. Its Olay Skin Advisor is a GPU-accelerated AI tool that works on any mobile device — users provide a selfie, information about age, skin issues, skin type and product preferences, and the tool advises how to improve trouble areas using a daily regime of recommended Olay products. After four weeks 94% of women who tried the skin advisor continued to use the products it recommended. 24 24 NVIDIA CONFIDENTIAL. DO NOT DISTRIBUTE. NVIDIA CONFIDENTIAL. DO NOT DISTRIBUTE.