How hardware stores can use AI
As famed quote machine John C. Maxwell once shared: “Change is inevitable. Growth is optional.”
Those words ring true regarding the seemingly inevitable rise of AI tools, which no doubt offer tantalizing possibilities for retailers of all stripes. However, all the buzz about what AI can do, or maybe will be able to do sometime in the future, makes it daunting to know where to start—or to settle on specific ways it might be useful in your business.
To help spark ideas, we asked tech experts from around the world to share guidance on how hardware store owners might be able to harness some of these emerging technologies to boost your business.
Practical ways hardware stores can implement AI tech
Trevor Hough, senior director of product marketing at Crescendo.ai, is a big believer in using new tech to bolster customer care and support.
“Hardware retailers, whether online or brick-and-mortar, can benefit from using AI-powered customer support tools to manage common queries. These include product recommendations, feature inquiries, returns, repairs, refunds, shipping updates, discounts, installation issues, and warranty questions, which typically make up 80–90% of all support tickets,” Hough explains.
He adds:
“By automating these repetitive tasks, retailers can significantly lighten the load on in-store staff and online support teams, allowing them to focus on more complex issues that require human judgment.”
AI can also help with financial analysis, according to Leury Pichardo from Digital Ceuticals. He suggests:
“Upload monthly profit and expenses, and see where there is potential to make savings or profits. It can help a small business analyze a ton of data and give you some quick win opportunities that you might not have found on your own or had to pay a big amount for a specialist to do it for you.”
Pichardo says AI can be your “small business financial advisor,” but “the key is to give it the proper samples and prompts.” As with all AI tools, however, always double-check the results. Some programs have been known to, er, embellish.
Singapore-based Eugene Leow, meanwhile says:
“I’ve seen how hardware stores can use AI without losing their neighborhood charm. AI isn’t just about chatbots or predictive inventory—it’s also about understanding local customers better. For example, a hardware store can use AI to track sales trends of specific product categories, like gardening tools during the rainy season, and adjust promotions accordingly.”
For operations, Leow says, AI can simplify staff scheduling based on foot traffic patterns and help forecast demand for seasonal products. “It’s not about replacing your team, but giving them better data so they can serve customers more personally—whether that’s recommending the right paint for a tropical climate or the best tools for a condo balcony garden,” he says.
Chris Turnbull, managing director of Catalyst Creative Marketing, suggests using AI to juice up SEO and other digital efforts.
“AI tools can boost visibility and streamline operations. For example, AI-driven SEO tools identify high-converting local keywords like ‘decking screws Manchester’ can help stores rank higher and attract foot traffic. Chatbots and predictive analytics can also personalize offers based on past purchases, turning one-off buyers into loyal customers. The key is combining automation with local relevance.”
Rachel McNab of Virtual Rani touts AI’s adaptability in terms of learning new tricks and tasks, which can be of service to employees and customers alike.
“A custom AI can be trained on a retail store's products and then can answer any questions a staff member has. This means that a newer staff member does not need to track down a more experienced staff member to answer a customer's question—they just need to ask the AI and get the answer instantly. The AI can also recommend upsells/cross-sells for the staff member to recommend.”
David Hunt, COO of Versys Media, AI can help surface deeper insights about customers you might not have previously considered.
“AI’s capability to analyze data can help hardware stores better understand customer behavior and preferences. For instance, incorporating AI-driven recommendations on e-commerce platforms can boost sales. By analyzing past customer purchases, AI can suggest complementary products. One of our clients, a building supply retailer, saw a 30% increase in their online sales after implementing an AI recommendation engine that tailored offerings directly to customer preferences.”
Tech can also be transformational regarding inventory management, according to Hunt.
“Another critical area where AI adds value is in inventory management and operational efficiency. Predictive analytics can forecast demand for specific products, enabling stores to maintain optimal stock levels and minimize overstock or stockouts. A case in point: a hardware client that integrated predictive AI tools reported a 20% reduction in their operational costs due to better demand forecasting and stock management practices.”
He also says AI-driven insights can streamline operational processes by identifying trends and inefficiencies, such as pinpointing products that have the highest returns and why. This sort of data can be used to adjust product offerings and refine sales approaches to decrease return rates.
More in-depth tips and ideas
Greg Trinidad, marketing director for SEAMGEN shares four key strategies to try:
1. Sales data analysis and forecasting
AI models can analyze sales data to identify patterns and trends that might be overlooked. This includes recognizing seasonal demand fluctuations, forecasting demand at the SKU level, monitoring new product adoption rates and determining optimal reorder points.
2. Personalized marketing and customer engagement
AI can segment customers based on their purchasing behavior and preferences, allowing for targeted marketing campaigns. By analyzing customer data, AI tools can recommend products, send personalized promotions, and predict future buying behaviors.
3. Inventory optimization
AI systems can monitor inventory levels in real-time, predict future stock requirements, and automate reordering processes. This ensures that popular items are always available, reduces excess inventory and minimizes storage costs.
4. Enhanced in-store experience
Smart shelves can detect when items are low in stock and alert staff, while digital price tags can automatically update prices, ensuring accuracy and saving time.
Ernesto Pramasetya, co-founder at GiantFocal, shares three more ways AI might behoove hardware stores:
Smarter inventory. AI can analyze sales patterns, seasonal trends, and even local weather data to predict what customers will need. For example, stores can automatically reorder snow shovels before a storm hits or stock up on gardening supplies as spring approaches. It eliminates those "sorry, we're out of stock" moments while reducing excess inventory costs.
More helpful customer connections. Instead of generic promotions, AI helps create personalized experiences. When someone buys lumber for a deck project, the system can suggest complementary items like screws, stain, or other corresponding tools.
Operational efficiency. Hardware stores could benefit from automated ordering, route optimization for deliveries and predictive maintenance on equipment.
The key, according to Pramasetya, is starting small and focusing on areas where you'll see immediate impact. He says inventory management and customer service automation typically give the best ROI and bang for the buck.
Pavel Buev, strategy expert at Pynest, shares a wealth of ideas to consider:
1. Smart inventory = more sales, less waste
AI tools can forecast demand down to the SKU level using sales history, seasonality, weather data and local construction trends. Think of it as Amazon-style predictive stocking, but applied to drywall and drill bits.
Use case: One Midwest hardware chain we worked with reduced dead stock by 27% using demand prediction AI fed from POS data + external construction permits API.
2. AI-powered, in-store product recommendations
Just like online shops use “Customers also bought…”, in-store kiosks or mobile POS systems can use AI to suggest complementary items based on what a customer is buying — screws with wood panels, sealants with paint, etc. It increases basket size and helps staff give smarter advice.
3. Hyperlocal marketing & customer retargeting
AI lets you cluster your audience based on past purchases, local DIY trends and seasonal needs. Stores can trigger automated SMS/email offers tied to weather (“Storm coming? Here’s 15% off tarps”) or past behavior (“Bought a lawnmower in spring? Here's fall maintenance kits”).
4. Operational streamlining with AI cameras & sensors
AI-based video analytics (like those used by major retailers) can monitor customer movement in-store to optimize product placement and reduce checkout bottlenecks. Some stores use it to track which aisles get skipped — a hint to improve layout or signage.
Buev conclude: “AI for hardware stores isn’t about flashy tech — it’s about borrowing the predictive logic and personalization of online commerce, and applying it to the physical world in smart, localized ways.”
