AR vs AI: Choosing the Right Technology for Your Furniture Store

AR (Augmented Reality) and AI (Artificial Intelligence) are revolutionizing business and marketing landscapes, evident when you look at the numbers.

Recent projections indicate that the global AR market is on a significant growth trajectory, expected to reach a staggering $570.8 billion by 2032, with a robust compound annual growth rate (CAGR) of 41.5% from 2024 to 2032.

The artificial intelligence market is projected to skyrocket from $387.45 billion in 2022 to a whopping $1,394.30 billion by 2029, with a solid annual growth rate of 20.1%.

Why does this matter for your furniture store? According to Statista, most consumers still prefer in-person shopping and remain hesitant about buying home furnishings online. This means that finding innovative ways to attract and engage online customers is crucial.

Using technologies like AI and AR is one of the best ways home, garden, and furniture brands can set themselves apart. Not only can these technologies drastically improve the customer experience, but they can also boost back-end efficiencies, saving you time and money.

In this article, we'll dive into how AR and AI can transform your furniture store and help you decide which technology is right for you.

Augmented Reality vs Artificial Intelligence: What is the difference?

What is Augmented Reality (AR)?

Augmented reality is a technology that allows users to overlay digital items onto their real-world view through their devices, essentially enhancing or "augmenting" what they see.

If you’ve ever used social media platforms like Snapchat, you’ve likely encountered AR through its filters that can transform you into a dog, create 3D animations, or even change your hair color.

Beyond social media fun, AR holds immense potential for home and garden retailers, especially in preview placements and customer interactions.

Understanding the Different Faces of AR

Augmented reality presents various forms that cater to diverse applications and user experiences.

1. Marker-based AR relies on predefined markers, such as QR codes or special images, to trigger augmented content. Users point their devices at these markers to reveal additional information or virtual objects overlaid on the real-world view. For example, in a furniture store, customers can scan a QR code on a sofa to see dimensions, colors, or customer reviews superimposed on their screen.

2. Markerless AR tracks the real-world environment without specific markers, using sensors like GPS, accelerometers, and cameras to anchor virtual objects in physical environment. This form offers more freedom of movement and spontaneity. In a furniture store setting, markerless AR could allow customers to visualize how a piece of furniture fits in their home simply by pointing their device around the room.

3. Projection-based AR uses projectors to augment content directly onto physical surfaces like walls or floors, creating a 3D illusion similar to a hologram. During store openings or pop-up shops, projection-based AR can be used to display holograms of furniture pieces, allowing customers to see and interact with life-sized 3D projections.

4. With superimposition-based AR, an existing physical item is fully or partially replaced with a digital augmentation. For instance, the app can change the color of a sofa in real-time or overlay different upholstery options. This technology must categorize objects in its field of vision to identify which images to replace or enhance, delivering a highly interactive and personalized shopping experience. 

What is Artificial Intelligence (AI)?

Simply put, artificial intelligence mimics human intelligence using computer systems instead of people to perform tasks and make decisions.

Unlike traditional computer programs, AI doesn't always need direct human input and can autonomously adapt and evolve.

Advanced AI systems understand context, recognize patterns, and can even display characteristics similar to human emotions and creativity in decision-making.

Understanding the Different Faces of AI

Artificial intelligence comes in various forms, each with its own strengths and applications.

1. Systems based on logical rules (if-then-else) and econometric and statistical models are foundational in programming. They remain essential and widely used. However, these models rely heavily on human-coded rules, which can be a bottleneck due to what's known as Polanyi’s Paradox: “We always know more than we can express.”

For instance, writing code to identify a sofa using logical rules. This requires coding every condition to distinguish a sofa from other furniture types. It’s rigid and prone to errors, especially with the complexities seen in real-world scenarios.

2. Machine Learning algorithms marks a shift in programming. Here, models learn from vast amounts of structured data (rows and columns). The model “learns” to perform tasks based on the data it processes, thereby reducing the impact of Polanyi’s Paradox. These models excel in predictions and classifications.

For example, instead of defining rules for identifying sofas, you can feed the model data on thousands of furniture pieces, and it learns to identify sofas autonomously.

3. Neural networks and deep learning are advanced types of machine learning models that excel at processing unstructured data, such as videos, audio, and long texts. Unlike traditional models, they can handle input without predefined structure and produce structured outputs (like a number or category).

For example, using these techniques, a model can learn to identify sofas from a dataset of furniture images labeled as "sofa" or "not sofa," bypassing the need for structured inputs.

4. Generative AI, a subset of Deep Learning, goes beyond classification tasks. It can process unstructured inputs and generate unstructured outputs, such as creating new designs or styles based on existing data.

While text-based AI like ChatGPT is making waves, visual generative AI tools like DALL-E and Midjourney have also made a big impact. These tools turn text prompts into stunning visuals and designs, blurring the line between AI and human-created content. Despite some controversy over Midjourney's use of copyrighted materials, its ability to transform imaginative ideas into unique furniture pieces is truly impressive.

Use Cases for Furniture Stores Using Augmented Reality

Did you know that about 71% of customers tend to shop more often at a retailer if they offer AR? It's no wonder that 61% of customers actually prefer stores with AR tech over traditional ones. And get this – 40% of people are even willing to pay extra for a product if they can experience it with AR. These numbers really show how AR is making a big impact in the retail world and here is how you can use augented reality in your furniture store.

Virtual Furniture Placement

Augmented reality allows customers to virtually place furniture items within their own living spaces using their smartphones or tablets. By superimposing digital representations of furniture pieces over real-world environments, customers can see how different items fit in terms of size, style, and color.

Product Information Display

Augmented reality can enrich physical products by offering additional information and interactive experiences. A customer scans a 2D image or QR code attached to a piece of furniture in the store. The app displays detailed information about the product, including materials, dimensions, available colors, and reviews.

AR-Powered Sales Assistance

AR can assist sales representatives in demonstrating furniture features and benefits more effectively. Sales staff equipped with augmented reality devices or apps can showcase product functionalities, demonstrate how to use adjustable features, or simulate different upholstery options in real-time. This interactive demonstration enhances the sales process and improves customer engagement by offering a hands-on experience without the need for physical samples.

Use Cases for Furniture Stores Using Artificial Intelligence

Many store owners may not fully understand the benefits that artificial intelligence can bring to their home furnishings business. Some believe it's only viable for large e-commerce giants, while others are hesitant to rely on machines for business decisions and sales automation.

However, today's AI-powered tools simplify the integration of interactive technology into your furniture store’s website and digital platforms, making it both accessible and cost-effective.

Interrective Showroom

Interrective showroom offers a "try-before-buy" solution powered by AI. Customers can create lifelike 3D replicas of their living spaces simply by taking a photo. Using machine learning capabilities, customers can visualize, customize, and redesign their living spaces seamlessly. Users can virtually erase existing furniture, try new products from your catalog, and explore different configurations, enhancing their home planning process.

Virtual Interior Design Consultations

Customers can schedule virtual appointments with design experts who use AI tools to collaborate on room layouts, furniture selections, and aesthetic enhancements. AI assists in creating 3D visualizations of proposed designs, allowing customers to see potential outcomes before making decisions.

Customer Support Chatbots

AI-powered chatbots provide instant responses to customer inquiries, helping them navigate product choices, check availability, and even assist with purchase decisions. These bots operate round the clock, enhancing customer satisfaction and relieving human agents from repetitive tasks.

Voice Search

Integrating AI with voice search technology simplifies product discovery for customers, allowing hands-free browsing and purchasing through natural language processing commands.

Product Recommendation

By analyzing past purchase data and browsing behaviors, AI algorithms can predict future trends and customer preferences. This insight allows furniture stores to optimize their inventory, tailor marketing strategies, and offer personalized recommendations to customers.

AI-Generated Furniture Decor

Collaborations between designers and AI, such as Philippe Starck and Kartell, demonstrate how AI can streamline the design and prototyping process. AI algorithms can generate innovative furniture designs that meet specific criteria for style, functionality, and sustainability, accelerating time-to-market and reducing environmental impact.

The Future of Artificial Intelligence and Augmented Reality Technologies

Augmented Reality technology

• Artificial intelligence and AR synergy. The combination of augmented reality and artificial intelligence is ushering in a new era of smart, context-aware applications. AI's real-time data analysis and adaptive learning empower AR systems to deliver personalized experiences, adjust to user preferences, and continuously enhance functionality.

• 5G and AR. The rollout of 5G networks is revolutionizing augmented reality. With its lightning-fast connectivity and minimal latency, 5G supports seamless AR applications such as remote assistance and interactive live events. This advancement empowers AR to be more versatile and impactful across various environments.

• Enhanced AR hardware. Recent innovations in AR headsets, including holographic lenses, micro OLED displays, and advanced depth sensing, provide exceptionally immersive experiences. These upgrades also enhance device performance, usability, and comfort for extended periods of use.

Artificial Intelligence Technology

• Evolution of language models. Current language models, such as GPT-4, Claude, Gemini, and Llama, are expected to continue evolving. This will not only extend their text comprehension and generation capabilities, but could also introduce new forms of human-machine interaction, making interfaces even more intuitive, natural and capable.

• Small language models. These models, adapted to specific knowledge niches, promise to offer high precision and lower resource consumption, making them better suited to specialized applications.

• Expansion of AI infrastructure. The infrastructure that enables current advances in AI, provided by giants such as AWS, Google and Microsoft (all using Nvidia as their GPU processor), will continue to expand. This will ease the development and implementation of more advanced AI models, supporting an even wider range of applications.

• AGI (Artificial General Intelligence). The search for AGI, considered the “holy grail” of this field, continues to guide the efforts of companies such as OpenAI, Google and Meta. The aim is to develop a form of superintelligence that can surpass human capabilities, taking us to new levels of development hitherto unseen in our history. Although it is difficult to make precise predictions, we have never been so close to this scenario, although we don’t know if we are 5, 10 or 20 years away from it.

Implementation Costs: AI vs AR

When it comes to implementing technology in furniture stores, the decision between investing in artificial intelligence and augmented reality can be challenging. Both have their own sets of benefits and costs, and understanding these can help you make an informed decision.

Let's start with augmented reality. A quick answer is that AR projects can range from a few thousand dollars to $300,000 or more for a custom AR solution. The devil is in the details. As for the most common cases:

• Marker-based AR apps. These use simple 2D images as markers. The cost for these basic applications can start from as low as $1,000 to $2,000. They are relatively easy to develop and can offer good functionality for simpler needs.

• Markerless AR apps. The cost for markerless AR apps starts at $10,000 and can go up to $50,000, depending on the features and sophistication required.

The costs of artificial intelligence projects can vary significantly based on the scale and complexity of the implementation. Here's a rough estimate:

• Small-scale AI projects. For smaller projects, such as basic inventory management systems or simple chatbots, the cost might range between $10,000 and $100,000. These projects are generally straightforward and can be implemented relatively quickly

• Medium-scale AI projects. More advanced applications of artificial intelligence, like predictive analytics for sales trends or more sophisticated customer service bots, can range from $100,000 to $500,000.

• Large-scale AI projects. Complex systems such as visualizing furniture in customer rooms with customization options—such as changing materials, moving, spinning, erasing furniture in photos, and adding catalog furniture—can be costly. Costs range from $500,000 for a minimum viable product (MVP) to $2,000,000 for a fully functional project. These endeavors are expansive and demand substantial investments in AI technology and skilled talent.

  Alternatively, furniture stores can opt for ready-to-use AI products, which are often much cheaper and quicker to implement. Companies like Zolak offer such products. For example, Zolak's AI-based Showroom starts at $232 per month, billed annually at $2,784. This solution can provide significant capabilities without the high upfront costs associated with custom development.

Zolak

With Zolak's Showroom, you can offer a virtual space creation experience where customers can design their ideal settings using your furniture collection. This gives them a lifelike preview of how your products will look in their homes.

Zolak's Showroom can be easily implemented on your website and used to:

• Accelerate visual content creation cost-effectively.

• Set up interactive touch screen displays in brick-and-mortar stores.

• Enhance the efficiency of designers' work.

Our platform's advanced technology includes two unique solutions:

Visualization engine. Our engine efficiently renders 3D showrooms, including those from user-submitted photos. It seamlessly integrates 2D backgrounds with digital product twins, using sophisticated algorithms to create a cohesive virtual 3D space. This blend of photorealism and interactivity offers customers a truly immersive experience.

Technology for creating showrooms using user-submitted photos. Powered by advanced neural networks and algorithms, this pipeline accurately processes and enhances user photos. It identifies room geometry, objects, and restores scenes to create interactive, high-resolution showrooms tailored to users' interiors.

Contact us today to learn more about how Zolak's Showroom can benefit your business!

AR Knowledge Base Contents:

1. What Is Augmented reality in ecommerce? A practical overview.

2. Augmented reality for furniture industry: make your customers go wow.

3. Augmented reality in construction: what leaders need to know.

4. Use Case: How AR helped pinterest increase furniture sales by 5x.

5. Use Case: How AR helped build.com reduce return rates by 22%.

6. AR furniture placement: why retailers invest + expert opinions.

7. Implementing AR in your furniture store: costs and tips.

8. Maximizing Sales and Marketing KPIs with Next-Gen AR—Zolak Showroom

See how Zolak can help you power-up online furniture store for growth and revenue.

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