Combating shrinkage in retail with AI-supported image recognition

February 26, 2024

New fraud prevention solution from Diebold Nixdorf recognizes the most common causes of shrinkage at self-service checkouts

Diebold Nixdorf is introducing a new AI-based solution for fraud prevention at self-checkouts. Presented for the first time at the NRF in New York, the software uses smart vision technology to detect unconscious and deliberate operator errors and complements the AI-based solutions already introduced for automatic age verification and fruit and vegetable detection. With this complete package, Diebold Nixdorf provides retailers with probably the most comprehensive toolbox currently available for reducing the most common sources of loss and friction at self-service checkouts. Easily integrated into the existing infrastructure, the solutions can be extended to traditional POS checkouts and other store areas in the future.

The massive increase in stores with stationary self-service checkouts by more than 150 percent in the last two years* clearly shows that retailers have recognized the great potential of self-service technology in terms of customer convenience, optimized sales areas and the ability to deploy employees for customer contact and service on the sales floor. However, one thing has remained a challenge to this day – countering the potential loss of goods at self-service checkouts, be it through unintentional or intentional missed scans, the manipulation of barcodes or removal without payment.

Vynamic® Smart Vision I Shrink Reduction is based on SeeChange’s AI and machine learning cloud platform and initially addresses the self-service environment of the checkout area. As it is now part of the software package that Diebold Nixdorf provides for self-service checkouts, the solution can be easily implemented and quickly rolled out across multiple store locations and regions.

Matt Redwood, Vice President, Retail Technology Solutions at Diebold Nixdorf, said: “Retailers strive for innovation, but they want to avoid duplication of effort and costly implementations. Therefore, any in-store innovation must deliver seamless integration in addition to an enhanced customer experience. We have developed our new AI-powered offerings based on insights gained from deploying millions of POS and thousands of self-checkout systems at our major global retail partners. We have spared no effort when it comes to improving the customer and employee experience, as well as meeting retailers’ need to easily scale and increase efficiency.”

Diebold Nixdorf has also designed its Vynamic® Smart Vision AI platform, which is being expanded with the new solution, to be hardware- and software-independent from the outset. This enables the company to take the topic of AI in stationary retail further, so that retailers can incorporate other parts of the sales floor in the future.

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