With the rapid development of artificial intelligence (AI) and the Internet of Things (IoT) technologies, AIoT (Artificial Intelligence of Things) is gradually transforming various industries. In the retail sector, AIoT applications have enhanced customer experiences and improved business operational efficiency. Facial recognition, as a major innovation in AIoT, is leading the retail industry into a new era of intelligence.

Development and Applications of Facial Recognition Technology

Facial recognition works by analyzing and identifying an individual’s facial features to verify identity. Common applications include:

1. Unmanned Stores
   In unmanned retail stores, customers can quickly complete purchases using facial recognition systems. Once a customer enters the store, the system identifies their facial features and automatically tracks the items they select. When the customer exits, the system processes the payment. The Industrial Technology Research Institute (ITRI) is collaborating with 7-Eleven to create a 24-hour unmanned store, aiming to enhance the shopping experience and operational efficiency with technology.
2. Precision Marketing and Custom Recommendations
   Retailers can analyze facial expressions to conduct precise marketing. For example, when a customer lingers in a particular product area, the system uses big data to assess their preferences and offer product recommendations or discounts, thus increasing the conversion rate.
3. Enhanced Security and Theft Prevention
   Facial recognition can be integrated into security monitoring systems to identify customers entering and exiting stores. It can also compare their faces with databases of blacklisted individuals or potential shoplifters. If the system detects a suspicious person, it triggers an alert to prevent theft, enhancing store security.
4. Customer Behavior Analysis and Store Layout Optimization
   By analyzing customer behavior data, businesses can instantly understand which products are popular or underperforming. This data enables optimization of product displays and adjustments to marketing strategies, improving customer satisfaction and increasing sales opportunities.

As AIoT technology matures, more facial recognition applications will emerge, including virtual try-ons and comprehensive intelligent surveillance. These innovations will assist retailers in achieving smarter and more efficient operations, creating customized and convenient shopping experiences for consumers.