How AI Is Helping Retail Companies in Cincinnati Cut Costs and Improve Efficiency

Cincinnati's retail footprint matters because it's home to Kroger - a Fortune 500 innovator that turned hometown scale into an AI advantage: Kroger's data arm, 84.51°, uses first‑party data from over 62 million U.S. households and powers roughly 500 billion “start my cart” recommendations annually, while an “AI Factory” and hybrid hub‑and‑spoke model speed production of responsible, scalable models that cut pickup lead times and optimize in‑store workflows in real time; see how Kroger's data and AI strategy and 84.51°'s AI Factory are operationalizing those gains.

For Cincinnati retailers aiming to copy that playbook, practical upskilling matters - Nucamp's AI Essentials for Work bootcamp teaches prompt writing and workplace AI skills in 15 weeks to help teams convert models into measurable cost and efficiency improvements.

Attribute	Information
Bootcamp	AI Essentials for Work
Description	Practical AI skills for any workplace; use AI tools, write prompts, apply AI across business functions
Length	15 Weeks
Cost (early bird)	$3,582
Registration	AI Essentials for Work bootcamp registration - Nucamp

Cincinnati retailers face a national surge in organized retail crime that makes smart, targeted investment in AI a practical necessity: the National Retail Federation reports a 93% rise in average shoplifting incidents from 2019–2023 and a 1.6% average shrink rate that translates to roughly $112.1 billion in losses nationwide, while Ohio alone faced about $3.94 billion in retail crime costs in 2021 - concrete numbers that justify replacing blunt policies like locked displays with precision tools.

AI-powered approaches - computer vision for anonymized, automated incident detection, RFID plus inventory analytics for real‑time shelf visibility, and machine‑learning case prioritization tied into information‑sharing networks - help loss prevention teams detect repeat offenders, route evidence to local prosecutors, and free staff for customer service instead of constant monitoring; see the National Retail Federation 2024 findings and Ohio organized retail crime policy reporting.

Metric	Value (Source Year)
NRF: increase in shoplifting incidents (2019–2023)	93% (NRF 2024)
Average retail shrink rate	1.6% (NRF National Retail Security Survey 2023)
Ohio: retail crime cost to business	$3,944,650,700 (US Chamber data, 2021)

“These individuals are professional thieves…This is what they do for a living, and they will resell that product to fencing operations. At the same time, they're also funding other illegal activities with it,” said Karl Langhorst.

Kroger's Cincinnati headquarters spearheaded a practical in-store AI rollout that pairs Everseen's Visual AI with Lenovo Edge AI servers and NVIDIA acceleration to reduce self-checkout friction and shrink: after a successful pilot the solution was deployed at roughly 1,700 stores with other reports noting plans for broader installs, and the system corrects over 75% of scanning errors without associate intervention - so customers finish faster and staff can focus on service instead of rescans.

The solution uses high‑resolution cameras and real‑time video analysis at the checkout lane to detect non‑scans and product‑switch fraud, prompt on‑screen self‑corrections, and alert associates only when needed; one Lenovo server can process feeds from up to 20 cameras simultaneously.

For Cincinnati retailers evaluating in‑store computer vision, Kroger's approach shows measurable shrink reduction, seamless POS integration, and an edge‑first architecture that supports rapid rollout - see the Lenovo case study: Kroger self-checkout AI edge computing and the Chain Store Age report: Kroger visual AI self-checkout rollout.

Metric	Value
Headquarters	Cincinnati, Ohio
Stores deployed (reported)	~1,700 (pilot → rollout)
Self-checkout errors corrected	Over 75% without employee intervention
Edge capacity	One Lenovo server handles up to 20 high‑resolution cameras

“By leveraging Everseen's Visual AI and machine learning technology, we're not only able to remove friction for the customer, but we can also remove controllable costs from the business and redirect those resources to improving the customer experience even more.” - Mike Lamb, VP of Asset Protection, Kroger

Ohio retailers - both e-commerce brands serving Cincinnati and local chain stores - can lower chargebacks and shrink by combining explainable machine learning, graph‑based account linking, and enterprise fraud platforms that guarantee decisions: deploy local‑explanation tools (SHAP/LIME) to surface why a payment was flagged and reserve human review for the small “uncertain” bucket, use graph models to catch account‑hopping networks, and route automated approvals to partners that absorb chargeback risk; see Wayfair's explainable fraud detection primer Wayfair explainable fraud detection primer, Riskified and Wayfair partnership announcement that pairs ML review with a chargeback guarantee Riskified and Wayfair partnership announcement, and the Finish Line machine learning fraud case study showing higher approval rates and far fewer disputes Finish Line machine learning fraud case study.

The so‑what: proven pilots reduced chargebacks dramatically while automating review workflows - letting loss prevention teams focus on high‑value exceptions instead of thousands of routine manual checks.

Metric	Result
Approval rate lift	+4% (Finish Line case)
Chargebacks reduction	−70% (Finish Line case)
Review automation	100% automation achieved (Finish Line case)

“Our goal when looking for partners is to make high ROI investments that deliver the best possible experience for our customers and suppliers.” - Michael Fleisher, CFO, Wayfair

Inventory and shelf automation in Cincinnati now blends smart sensors, RFID and the same edge‑first computer vision Kroger deployed for self‑checkout - an approach that spots out‑of‑stocks, triggers targeted restock alerts, and corrects checkout errors without constant associate intervention; one Lenovo edge server in Kroger pilots can process feeds from up to 20 high‑resolution cameras, enabling real‑time lane and shelf monitoring while keeping latency low.

The broader economic context matters: the Institute for Global Change estimates most near‑term time savings will come from software‑based AI (private‑sector potential ~23.8% time savings), so Cincinnati stores can redeploy saved hours into in‑store replenishment and customer service rather than routine scanning and manual audits (see the Institute report and Nucamp AI Essentials for Work syllabus - practical guide to using AI in retail).

The so‑what: automated shelf visibility plus edge vision reduces preventable stockouts and checkout friction, turning lost labor hours into measurable service and sales capacity.

Metric	Value / Source
Private‑sector AI time‑savings potential	~23.8% (Institute report)
Self‑checkout errors corrected without staff	Over 75% (Kroger pilot)
Edge capacity	One Lenovo server → up to 20 cameras (Kroger case)

“By leveraging Everseen's Visual AI and machine learning technology, we're not only able to remove friction for the customer, but we can also remove controllable costs from the business and redirect those resources to improving the customer experience even more.” - Mike Lamb, VP of Asset Protection, Kroger

Supply chains serving Cincinnati retailers face sharply rising, market‑driven theft: Verisk/CargoNet reported 884 U.S. and Canadian incidents in Q2 2025 (a 13% year‑over‑year jump) with estimated Q2 losses topping $128 million and an average stolen‑shipment value near $203,586, while Overhaul recorded 525 U.S. thefts in Q2 2025 (a 33% increase year‑over‑year); these trends matter locally because Cincinnati logistics firms such as TQL report “unprecedented” activity and have expanded cargo‑security teams - quadrupling staff since 2020 - to work with law enforcement and vet carriers.

Practical response for Cincinnati retailers: treat a single stolen trailer as a six‑figure risk, combine route telematics, carrier‑identity verification, and real‑time intelligence feeds, and use historical patterning from CargoNet's theft database to harden vulnerable lanes and holiday windows.

For retailers weighing investments, the so‑what is concrete: reducing one full‑trailer loss prevents roughly $200k in direct merchandise exposure and avoids downstream stockouts that hit store shelves and margins.

Metric	Value / Source
Q2 2025 theft incidents (US & Canada)	884 (Verisk/CargoNet)
Estimated Q2 2025 loss value	> $128 million (Verisk)
Average stolen shipment value (Q2 2025)	$203,586 (Verisk)
US Q2 2025 recorded thefts	525 (Overhaul)

“Traditional physical security measures alone are no longer sufficient. The industry must adopt a multi‑layered approach combining physical security, digital verification, and real‑time intelligence sharing to combat these evolving threats.” - Keith Lewis, Verisk CargoNet

Robotics are moving from pilots to practical tools across Cincinnati's retail footprint: the Cincinnati/Northern Kentucky Airport runs Ottonomy's Ottobots to deliver meals and retail items to passengers in Concourse B via mobile orders and a QR‑code pickup that opens a secure compartment, proving autonomous robots can navigate crowded, time‑sensitive settings and enable contactless service CVG Airport Ottonomy Ottobots pilot.

Ohio's permissive delivery‑robot law (limits such as <90 lb and <10 mph, with a nearby operator required) cleared a path for sidewalk and curbside pilots statewide, which matters when retailers weigh sidewalks versus curbside lockers or drone pads Ohio delivery-robot law details and limits.

Between indoor Ottobots, campus and curbside bots, and grocery drone tests, Cincinnati retailers can measurably cut short staff trips, offer faster contactless fulfilment, and shift peak‑period labor from handoffs to customer service - see Ottonomy's Level‑4 Ottobot program for airport, indoor and last‑mile use cases Ottonomy Level-4 Ottobot program.

Program	Detail
CVG Ottobots	Autonomous deliveries in Concourse B with mobile ordering and QR‑code pickup
Ohio delivery‑robot law	Max weight <90 lb; max speed <10 mph; operator nearby required
Kroger drone pilot (Ohio)	Centerville pilot for small groceries (up to 5 lb; deliveries as little as 15 minutes)

“The pandemic has provided Ottobots a catalyst enabling a series of partnerships that allowed us to launch fully autonomous delivery for indoor deliveries, curbside deliveries and last‑mile deliveries.” - Ritukar Vijay, Ottonomy

Cincinnati retailers can turn Kroger's playbook into competitive advantage by combining 84.51° customer data platform details with predictive analytics and practical in‑store automation: 84.51° leverages data from roughly 62 million U.S. households to fuel personalized experiences (about 500 billion “start my cart” recommendations annually) that speed online cart fill times by ~4.5x and surface healthier, tailored offers like OptUp food recommendations - so local grocers can convert time saved into better service rather than routine tasks.

AI also improves operations: dynamic batching and route optimization cut pickup lead times and machine learning that sorts hundreds of thousands of totes per second lowers associate steps by about 10%, freeing staff for high‑value interactions on the sales floor.

For Cincinnati leaders, the so‑what is concrete: personalization and automation together lift conversion and shrink labor waste, making each store visit both faster for customers and more efficient for operations; learn more at 84.51° customer data platform details, read a Forbes overview of Kroger AI initiatives, and see the OptUp personalization feature on The Spoon.

Metric	Value / Source
First‑party households	~62 million (84.51°)
“Start my cart” recommendations	~500 billion annually (Forbes)
Online cart fill speed	~4.5× faster (Forbes)
Associate step reduction	~10% (Forbes)
ML tote sort throughput	~200,000 totes/sec (Forbes)

“Technology is exciting but investments prioritize business benefit. Data supports AI, AI serves the business.” - Todd James

Cincinnati retailers must treat email and AI impersonation as frontline risks, pairing human training with AI‑native defenses: require MFA and email authentication (DMARC/SPF/DKIM), deploy secure email gateways and AI‑driven anomaly detectors that flag contextually convincing, machine‑crafted phishing, and train staff to verify unexpected chatbots or pop‑ups per Ohio Attorney General guidance; practical wins show AI can both create and stop these attacks - machine learning systems have flagged intricate phishing that traditional filters miss while the Attorney General warns scammers now use AI to improve phishing quality.

The so‑what: an attacker can clone a voice from seconds of audio and fraud losses from impersonation topped $2.95 billion in 2024, so adding real‑time behavioral analytics, encrypted mail for sensitive traffic, and tailored employee simulations (phish drills) turns mailboxes from the weakest link into an early‑warning sensor.

Start with the Ohio AG's consumer checklist, adopt foundational email best practices, and evaluate AI breach case studies to choose tools that automate containment without adding false alarms (Ohio Attorney General AI scams guidance, Email security best practices by Cerkl, Paubox AI email breach case studies).

Metric	Value / Source
Targeted attacks starting via email	Up to 91% (Cerkl)
Malware delivered via email	~23% (Paubox)
Impersonation scam losses (2024)	$2.95 billion (FTC via WHIO)
Voice cloning feasibility	3 seconds of audio; 70% of people couldn't reliably tell (McAfee via WHIO)

"The email was telling me I was purchasing almost $350 in Bitcoin using my PayPal account," she said.

Measuring ROI for Cincinnati retailers adopting AI starts with operational KPIs tied to loss prevention and inventory accuracy: Info‑Tech recommends dedicated metrics such as shrinkage rate, inventory‑accuracy, and advanced KPIs that track the effectiveness of AI loss‑prevention systems and time‑to‑incident‑response, because AI's business value shows up as fewer incidents, faster remediation, and clearer allocation of labor to customer service instead of monitoring; read Info‑Tech's loss‑prevention playbook for tools to assess maturity and identify gaps Info‑Tech retail loss prevention AI report.

Complement these measures with supply‑chain visibility and inventory metrics from logistics platforms to quantify downstream savings and reduced stockouts - see PackageX's coverage of inventory management and real‑time visibility for practical measurement ideas PackageX inventory management and real-time visibility guide.

The practical takeaway for Cincinnati leaders: benchmark today (many retailers sit at a “Structured” maturity level), set shrink and AI‑effectiveness targets, and use tiered measurement so pilots produce clear, repeatable ROI that justifies scale.

Measurement Area	Example KPI
Shrink & Loss Prevention	Shrinkage rate; incidents per store
Inventory Accuracy	Inventory accuracy %; out‑of‑stock frequency
AI Effectiveness & Maturity	Time‑to‑detect, false‑positive rate, maturity level (Basic→Advanced)

"AI powering next‑gen video surveillance, facial‑recognition, RFID, security robots, and predictive analytics" – CNBC, 2023

Cincinnati retailers should assemble a two‑tier partner roster that pairs seasoned integrators with nimble local startups: engage established consultancies that are explicitly expanding AI services - such as Callibrity's renewed leadership and growth focus (Callibrity software consultancy Cincinnati leadership article) - while trialing point solutions from the city's emerging AI ecosystem highlighted in the 2025

Startups to Watch

roundup (25 Cincinnati startups to watch 2025 list).

Supplement technical partners with strategy and governance advisors who understand generative AI risks (CoStrategix is one regional example of firms guiding AI adoption: CoStrategix generative AI guidance Cincinnati).

Practical next steps: shortlist 3–5 local vendors, run a one‑to‑three‑store proof‑of‑value tied to shrink, checkout time, and chargeback KPIs, and pair each pilot with staff upskilling so wins convert to repeatable rollouts - the so‑what: Cincinnati already has scale (dozens of fast‑growing firms and a 25‑startup pipeline), so thoughtful partner choice shortens procurement friction and speeds measurable time‑to‑value.

Ethical, legal, and privacy considerations should be a project-first item for Cincinnati and Ohio retailers deploying AI: Ohio's quiet statewide face‑recognition rollout (reported to have generated roughly 2,600 searches) and high‑profile wrongful‑identification cases - one man spent 30 hours in custody after an FRT match - show how quickly operational convenience can become legal and reputational liability, so retailers must treat biometric data as high risk rather than a routine sensor stream.

Practical steps drawn from recent reporting and legal guidance include: minimize collection and keep faceprints at the edge or avoid storing them entirely; obtain clear, documented consent where statutes like Illinois's BIPA or local rules apply; run documented data‑protection assessments and privacy impact reviews before high‑risk processing; require vendor documentation, accuracy testing, and retention limits; and train staff and loss‑prevention teams on procedural safeguards and human review so algorithmic outputs never become the sole basis for enforcement.

Ohio leaders should monitor the accelerating state privacy landscape and bake transparency, vendor audits, and incident response into procurement to reduce both regulatory exposure and the real human cost of misidentification - see reporting on FRT guardrails and state privacy law trends for more detail.

Risk / Fact	Source
Ohio face‑recognition searches ≈ 2,600 after rollout	ACLU report on Ohio statewide face-recognition rollout and search activity
Wrongful arrest example: Robert Williams detained ~30 hours after FRT match	Kentucky Lantern reporting on the Robert Williams wrongful-identification and detention case
State privacy momentum: multiple new laws and 2025 compliance obligations	White & Case analysis of 2025 state privacy law developments and business compliance implications

“This is a technology that is both dangerous when it works and dangerous when it doesn't work.” - Nate Wessler, ACLU

Practical next steps for Cincinnati retail leaders are clear: pick one tightly scoped pilot (shrink, checkout accuracy, or cargo‑theft mitigation), measure it against specific KPIs (shrinkage rate, time‑to‑detect, chargeback lift) and run a one‑to‑three‑store proof‑of‑value so results are repeatable and auditable; couple each pilot with staff upskilling and a two‑tier partner roster (established integrator + local startup) to shorten procurement cycles and operationalize wins.

Use a data‑first vendor scorecard and explainable models so humans review the “uncertain” bucket and CFOs can trace ROI back to fewer incidents and redeployed hours - remember: preventing a single stolen trailer can avoid roughly $200k in direct merchandise exposure.

For playbooks and measurement templates, see the practical implementation guide from Endear and Info‑Tech's loss‑prevention AI report, and ensure frontline teams get applied training (Nucamp AI Essentials for Work 15‑week bootcamp)

Bootcamp	Details
AI Essentials for Work	15 weeks; practical AI skills for workplace use; early bird $3,582; Register for Nucamp AI Essentials for Work 15‑week bootcamp