Zulfiqar Et Al. (2025)
Zulfiqar Et Al. (2025)
  ABSTRACT This paper presents an AI-driven smart shopping cart system designed to enhance retail
  efficiency and customer experience through real-time data analytics and machine learning. Traditional
  shopping carts lack capabilities for adaptive tracking, inventory management, and personalized customer
  interaction. Our system addresses these gaps with a multi-layered architecture that integrates person-
  specific tracking, reinforcement learning (RL) for navigation, and Long Short-Term Memory (LSTM)
  networks for demand forecasting, alongside seamless Point-of-Sale (POS) integration for automated billing.
  The architecture comprises real-time data capture, edge computing for low-latency decisions, and cloud
  processing for customer profiling and inventory management. Experimental results demonstrate notable
  improvements in tracking accuracy, navigation efficiency, inventory forecasting, and customer satisfaction,
  highlighting AI’s transformative potential in retail.
  INDEX TERMS Artificial intelligence, machine learning, smart shopping cart, retail, inventory
  management, personalized shopping, autonomous systems.
In this study, we aim to introduce a novel AI-powered smart                          TABLE 1. Symbols and notations used in this research.
shopping cart system engineered to optimize customer expe-
rience and operational efficiency. This system uses a multi-
layered architecture: real-time data collection is achieved
through hardware components, low-latency decision-making
through edge computing, and intensive computational tasks
such as demand forecasting and customer profiling are
handled via cloud infrastructure. Person-specific tracking is
achieved through Red, Green, Blue, and Depth (RGB-D)
cameras, ultrasonic sensors, and Kalman filters integrated
with re-identification (Re-ID) models, ensuring uninterrupted
and accurate customer tracking. RL algorithms dynamically
adjust the cart’s navigation path based on store layout and
                                                                                     the experimental setup, Section VI presents the results,
real-time obstacle detection, ensuring efficient movement
                                                                                     and Section VII concludes with key findings and future
throughout the store.
                                                                                     directions.
   Moreover, LSTM networks are utilized to forecast product
demand and optimize inventory levels, thus minimizing both
stockouts and overstock situations and reducing operational                          II. BACKGROUND AND RELATED WORK
costs. Our system seamlessly integrates with POS sys-                                The swift progress in AI and ML has significantly impacted
tems, automating billing and enabling contactless payments                           the retail industry, introducing solutions that enhance
for improved customer convenience. Collectively, these                               operational efficiency, improve customer satisfaction, and
innovations contribute to an AI-driven retail ecosystem                              streamline inventory management [9], [10]. AI is widely
that significantly improves operational efficiency, inventory                        applied in decision-making systems, while ML models excel
management, and customer satisfaction.                                               in predictive tasks, learning from both historical and real-
   The main contributions of this paper are as follows:                              time data. The integration of these technologies has enabled
   • We propose an AI-powered smart shopping cart system
                                                                                     the development of sophisticated systems that automate
      that integrates real-time data acquisition, edge comput-                       various retail processes, such as customer interaction, product
      ing, and cloud processing, thereby greatly enhancing                           recommendation, and navigation [11]. Smart shopping carts
      shopping experience and operational efficiency in retail                       equipped with AI and ML have, in particular, attracted
      environments.                                                                  attention for their potential to transform the traditional
   • We develop a precise person-specific tracking algorithm                         shopping experience.
      leveraging RGB-D cameras, Kalman filters, and Re-ID
      models based on cosine similarity, ensuring robust, real-                      A. SMART SHOPPING CARTS
      time tracking of customers throughout their in-store                           Smart shopping carts are engineered to automate and improve
      journey.                                                                       different aspects of in-store shopping, featuring capabilities
   • The system implements RL-based dynamic navigation                               such as product scanning, navigation, and billing automation.
      optimization, enabling adaptive pathfinding that adjusts                       Early implementations, like Amazon Dash Cart [12] and
      to store layouts and obstacles in real time, improving                         Caper’s Smart Cart [13], focused on checkout simplification
      navigation efficiency.                                                         by eliminating manual product scanning through RFID tech-
   • We apply LSTM networks for accurate demand forecast-                            nology, barcode scanners, and computer vision algorithms.
      ing, facilitating optimal inventory management while                           However, these systems lacked advanced decision-making
      minimizing stockouts and overstock, thus significantly                         capabilities and personalized customer interactions achiev-
      reducing associated operational costs.                                         able through sophisticated ML models and AI-powered
   • Our system integrates seamlessly with POS systems,                              systems [14].
      automating billing, supporting real-time product scan-                            Recent studies have explored enhancements to smart
      ning, and enabling contactless payments to streamline                          shopping carts through more advanced AI and ML models.
      checkout processes and enhance customer convenience.                           For example, AI-driven shopping systems have been devel-
   • An extensive experimental evaluation is conducted                               oped for real-time product recommendations, automated
      in both simulated and real-world retail environments,                          pathfinding, and predictive analytics for inventory manage-
      demonstrating marked improvements in customer satis-                           ment [15]. While these innovations mark progress, they are
      faction, operational efficiency, and inventory accuracy.                       often limited to isolated functions such as automated billing
   The key notations used throughout this manuscript are                             or static navigation, without fully exploiting AI’s potential
summarized in Table 1.                                                               for adaptive, real-time decision-making in dynamic retail
   The paper is organized as follows: Section II reviews                             environments.
related work, Section III describes the system architecture,                            Our proposed AI-powered smart shopping cart system
Section IV presents research method, Section V details                               advances these efforts by integrating RL algorithms for
optimized in-store navigation and LSTM networks for                     with real-time customer tracking and interaction. Using
forecasting-based inventory management. This integration                person-specific tracking algorithms, the system reliably
enables the cart to autonomously adapt to changing store lay-           follows customers throughout the store, while RL dynam-
outs, customer preferences, and product demand, delivering              ically optimizes navigation based on store layout and
a personalized and efficient shopping experience.                       customer behavior. By merging AI-driven personalization
                                                                        with autonomous navigation, our system delivers an intuitive
B. AI AND ML IN THE RETAIL SECTOR
                                                                        and seamless shopping experience, elevating customer
                                                                        satisfaction and operational efficiency.
AI and ML applications in retail have shown substantial
potential in optimizing both customer experiences and
operational processes [16], [17]. AI is applied across                  D. CHALLENGES IN AI-DRIVEN RETAIL SYSTEMS
various retail functions, such as customer behavior analysis,           Despite advancements in AI and ML, challenges remain in
demand forecasting, and recommendation generation [18].                 deploying AI-driven retail systems. One primary challenge
ML techniques, especially deep learning and RL, play a                  is integrating AI models with existing retail infrastructure,
crucial role in enabling these systems to continuously learn            such as POS systems, inventory databases, and customer
from extensive datasets and improve performance over time.              relationship management platforms [11]. Seamless com-
Convolutional Neural Networks (CNNs), for instance, are                 munication among these systems is essential to achieve
widely used in recommendation systems to predict customer               real-time synchronization of customer data, inventory levels,
preferences based on historical purchasing patterns and real-           and product information.
time interactions [14].                                                    Data privacy and security are also critical, as AI-driven
   RL, in particular, has proven effective for path opti-               systems often collect and process substantial volumes of
mization, notably within autonomous robotic systems in                  customer data [25]. Retailers must secure this data and ensure
warehouses and retail stores [19], [20]. By learning from               compliance with privacy regulations. Additionally, scalability
the environment, RL models can continuously optimize                    poses a challenge, as AI systems must manage interactions
navigation paths, reducing travel time and avoiding obstacles,          with hundreds or thousands of customers concurrently
thereby improving overall operational efficiency. Despite               without compromising performance.
these advancements, the application of these techniques to                 This study addresses these challenges by developing a
smart shopping carts remains limited, with research often               smart shopping cart system that integrates with existing retail
focusing on discrete aspects such as inventory management               infrastructure while ensuring data privacy through encrypted
or customer interaction, rather than developing an integrated           communications and role-based access control. The system is
system.                                                                 also highly scalable, capable of supporting multiple carts and
   This work addresses this gap by presenting a unified                 customers simultaneously without performance degradation.
AI-driven smart cart system that combines real-time data
acquisition, autonomous navigation, and predictive inventory            III. SYSTEM ARCHITECTURE
management. The system leverages AI for decision-making                 The architecture consists of three primary layers—Hardware
and automation while employing ML models to learn from                  Layer, Data Processing Layer, and Application Layer—each
customer interactions, dynamically optimizing the shopping              fulfilling specific functions to ensure optimal performance
process. By integrating RL for real-time navigation and                 and a seamless customer experience. An overview of these
LSTM networks for demand forecasting, our system adapts to              layers is illustrated in Figure 1.
both the physical environment and shifting market conditions,
offering an end-to-end solution for retail automation.                  A. HARDWARE LAYER
                                                                        The Hardware Layer is responsible for capturing real-time
C. AUTONOMOUS SYSTEMS FOR CUSTOMER                                      data and enabling autonomous operations. It integrates
INTERACTION                                                             several essential components, including RGB-D cameras that
Autonomous systems, including robotic assistants and mobile             provide both visual and depth data to support person tracking
service robots, are increasingly prevalent in retail and                and obstacle detection. Ultrasonic sensors enhance obstacle
hospitality [21], [22]. These systems utilize AI for customer           avoidance capabilities and help maintain safe distances from
guidance, real-time assistance, and autonomous naviga-                  customers, while infrared sensors detect line patterns or
tion [23]. For example, Simbe Robotics’ Tally [24] leverages            predefined routes to aid in navigation. Product identification
AI-driven computer vision and ML to autonomously audit                  is automated through a barcode scanner or RFID reader,
store shelves, ensuring product availability. While similar             which simplifies item addition as products are placed in the
technologies have been applied to autonomous shopping                   cart. Motors and controllers manage the cart’s movement
assistants, few integrate personalized customer interactions            by adjusting speed and direction in response to sensor data.
with effective in-store navigation and inventory management.            The onboard microcontroller (Raspberry Pi) processes these
   Our smart shopping cart system enhances these autonomous             inputs and executes low-latency commands for real-time
capabilities by incorporating personalized recommendations              control, enabling smooth and responsive navigation.
where Q(st , at ) is the current Q-value, α is the learning rate,         V. EXPERIMENTAL EVALUATION
rt represents the reward, γ is the discount factor, and a′ is the         This section presents the experimental setup and performance
action that maximizes the next state Q-value.                             evaluation of the proposed system. Two datasets are utilized
                                                                          to assess the system’s effectiveness in tracking, navigation,
B. DEEP LEARNING FOR CUSTOMER PERSONALIZATION                             recommendation, and demand forecasting, with comparison
Customer personalization is handled by a Convolutional                    against baseline algorithms across relevant metrics.
Neural Network (CNN) model, which processes customer
behavior data to generate tailored product recommendations.               A. EXPERIMENTAL SETUP
The CNN operates with convolutional layers that identify                  The AI-powered smart shopping cart operates in a controlled
patterns in customer data, followed by max pooling and                    retail setting with multiple sensors and computing devices.
a fully connected layer to output recommendation scores.                  While these experiments provide valuable insights, future
Algorithm 1 outlines the CNN structure for generating these               large-scale deployment in real retail stores will be necessary
recommendations.                                                          to assess system performance under varying real-world
                                                                          conditions. The setup included the following components:
Algorithm 1 CNN for Customer Personalization                                 • RGB-D Cameras: Capture visual and depth informa-
 1: Input: Customer data X                                                      tion for customer tracking and obstacle detection.
 2: Output: Product recommendations Ŷ                                       • Ultrasonic and Infrared Sensors: Detect obstacles and
 3: Initialize weights W and biases b                                           maintain safe distances between the cart and customers.
 4: for each customer i in X do                                              • RFID Scanners and Barcode Readers: Automate
 5:    Perform convolution: Z ← W ∗ X [i] + b                                   product identification as items are added to the cart.
 6:    Apply activation (ReLU): A ← max(0, Z )                               • Onboard Computing (Raspberry Pi): Perform
 7:    Apply max pooling: P ← MaxPooling(A)                                     real-time processing of sensor data and control cart
 8:    Flatten and apply fully connected layer: Ŷ ← σ (Wfc ·                   movement.
       F + bfc )                                                             • Cloud Infrastructure: Handle computationally inten-
 9: end for                                                                     sive tasks, such as customer profiling, demand forecast-
10: Return: Ŷ                                                                  ing, and generating personalized recommendations.
                                                                          B. DATASETS
C. PREDICTIVE ANALYTICS FOR INVENTORY                                     Two primary datasets are used for system evaluation:
MANAGEMENT                                                                  • Retail Transaction Dataset (RTD): Contains historical
Inventory management leverages an LSTM-based predictive                       sales data from a large-scale retail environment and is
model to forecast demand. This model processes historical                     used for training the demand forecasting model, includ-
sales data to update the cell and hidden states and predict                   ing features such as product sales history, customer
future demand values, as shown in Algorithm 2.                                demographics, and purchase patterns.
                                                                            • Shopping Mall Dataset (SMD): Consists of labeled
D. SYSTEM OPERATIONS AND SECURITY                                             RGB-D video sequences from crowded environments,
The smart cart system integrates with POS systems to                          used to train and evaluate the customer tracking system.
enable real-time product scanning, automated billing, and                     This dataset provides a range of customer behaviors
contactless payment. Communication across the system                          and movement patterns, ideal for testing tracking
utilizes MQTT for low-latency updates, HTTP/HTTPS for                         robustness.
D. EVALUATION METRICS
The performance of the AI-powered smart shopping cart
system is evaluated using the following metrics:
   •   Tracking Accuracy: Assessed through precision,
       recall, and F1-score, measuring the accuracy of
       customer tracking and re-identification in crowded
       environments.
   •   Navigation Efficiency: Metrics such as path length,
       time to destination, collision rate, and success rate (task
       completion without failure) are used to evaluate cart                         FIGURE 2. Tracking accuracy: F1-Score comparison.
       navigation.
   •   Recommendation Accuracy: Measured using Preci-
       sion@k, Recall@k, and Mean Reciprocal Rank (MRR)                              B. TRACKING ACCURACY AND ENVIRONMENTAL
       to assess the relevance of recommended products based                         CONDITION ANALYSIS
       on customer purchase history.                                                 To assess robustness, tracking accuracy is measured under
   •   Demand Forecasting Accuracy: Mean Squared Error                               different lighting (bright, dim, low-light) and crowd density
       (MSE), Mean Absolute Error (MAE), and Root Mean                               conditions (low, medium, high). The Kalman filter + Re-ID
       Squared Error (RMSE) are used to evaluate the LSTM                            method is compared with relevant baseline methods: Kalman
       model’s demand forecasting.                                                   filter only, Re-ID model only, optical flow tracking, and
   •   User Satisfaction: Survey-based metrics such as                               YOLO-based object detection. As shown in Table 3, the
       ease of use, recommendation relevance, and shopping                           Kalman filter + Re-ID approach maintained high accuracy
       experience.                                                                   in bright conditions (F1-score: 0.93) but showed slight
   •   Scalability and Robustness: Measured the system’s                             decreases in low-light (F1-score: 0.88) and high-density
       ability to handle concurrent users, recover from failures,                    settings (F1-score: 0.90). This performance exceeded that of
       and maintain real-time performance.                                           the baseline methods under each condition, suggesting that
                                                                                     the combined Kalman filter + Re-ID model is effective under
VI. RESULTS                                                                          standard conditions and moderately robust in challenging
This section presents the evaluation results of the proposed                         environments.
AI-powered smart shopping cart system, compared with                                    The tracking accuracy of the baseline methods generally
baseline algorithms across various aspects such as tracking                          decreased under low-light and high-density conditions, with
optical flow and YOLO-based detection particularly sensitive             demonstrating its ability to provide relevant and personalized
to crowd density and lighting variations. These results                  recommendations.
underscore the advantages of combining Kalman filtering and
Re-ID for robust tracking in retail environments.                        G. REAL-TIME DEMAND FORECASTING IN DYNAMIC
                                                                         RETAIL SCENARIOS
C. TRACKING ROBUSTNESS                                                   To evaluate adaptability, the LSTM-based demand forecast-
To assess the system’s robustness, tracking accuracy is tested           ing model is tested in scenarios with simulated demand
under varying conditions such as high crowd density and                  surges (e.g., flash sales or promotions). Table 6 shows the
low lighting. In high-density settings, the tracking system              model’s accuracy over time, with Mean Squared Error (MSE)
maintained an F1-score of 0.90 with a minor increase in the              increasing slightly during the surge but stabilizing afterward.
ID Switch Rate to 0.05. However, in low-light conditions,                The LSTM model adjusted within 5 minutes of the demand
performance dropped slightly with an F1-score of 0.88,                   spike, demonstrating its responsiveness to rapid changes.
indicating sensitivity to lighting conditions. This analysis
suggests that adding thermal or infrared sensors could                   H. DEMAND FORECASTING ACCURACY
improve robustness in adverse conditions.                                The LSTM-based demand forecasting model demonstrated
                                                                         superior accuracy over ARIMA, achieving lower MSE
D. NAVIGATION EFFICIENCY AND REAL-TIME COLLISION                         (0.034), MAE (0.055), and RMSE (0.046) as presented in
AVOIDANCE TESTING WITH DYNAMIC OBSTACLES                                 Table 7 and Figure 5. The forecast bias is also significantly
The system’s navigation efficiency is evaluated in environ-              lower, indicating the model’s capability to manage inventory
ments with static and dynamic obstacles, specifically testing            effectively and reduce stockouts.
real-time collision avoidance. The RL-based navigation
system is compared with two established baseline methods:                I. USER SATISFACTION ANALYSIS
A* pathfinding and Dynamic Window Approach (DWA).                        User surveys are conducted to evaluate satisfaction with
As shown in Table 4 and Figure 3, the RL-based system                    system features, such as ease of use, recommendation
maintained a collision rate below 0.03 and achieved a success            relevance, and overall shopping experience. Results indicated
rate of 96% in high-density and dynamic obstacle settings.               an 85% satisfaction rate, with high ratings in ease of use and
   The RL-based system outperformed both A* and DWA,                     recommendation quality. User feedback also highlighted the
especially in dynamic obstacle scenarios, where it maintained            convenience of automated billing and the accuracy of real-
lower collision rates and shorter path lengths, showcasing its           time recommendations.
adaptive capability to avoid obstacles in real-time.
                                                                         J. SCALABILITY AND SYSTEM LATENCY
E. NAVIGATION RELIABILITY AND ROBUSTNESS                                 The system is tested with up to 50 concurrent carts in
The navigation system is further evaluated under condi-                  a simulated retail environment. Average system latency
tions with varying obstacle density and dynamic obstacles                remained below 200 ms, ensuring real-time responsiveness.
(e.g., moving individuals). The RL-based navigation system               Performance scaled effectively, with minor latency increases
showed a 96% success rate in high-density obstacle scenarios,            observed as the number of carts approached capacity,
compared to 85% and 89% for A* and DWA, respectively.                    indicating robustness under increased loads.
The RL approach dynamically adjusted paths in response to
moving obstacles, demonstrating adaptability that is critical            K. SUMMARY OF RESULTS
in retail environments with high foot traffic.                           The proposed AI-powered smart shopping cart system
                                                                         consistently outperformed baseline algorithms across all
F. RECOMMENDATION ACCURACY                                               evaluated tasks:
The deep learning-based recommendation system outper-                      • Tracking Accuracy: The combined Kalman filter + Re-
formed collaborative filtering (CF) and matrix factorization                  ID approach achieves higher precision, recall, and F1-
(MF) in terms of Precision@5, Recall@5, and Mean                              score, with a significantly reduced ID Switch Rate.
Reciprocal Rank (MRR). As shown in Table 5 and Figure 4,                   • Navigation Efficiency and Robustness: RL-based
the proposed method reached a Precision@5 of 0.88, higher                     navigation demonstrated shorter paths, reduced travel
than CF (0.76) and MF (0.80), with an MRR of 0.84,                            time, and higher adaptability in dynamic environments.
TABLE 3. Tracking accuracy across environmental conditions for proposed and baseline methods using SMD.
TABLE 4. Navigation efficiency and collision avoidance in dynamic environments using the SMD.
TABLE 5. Recommendation system performance (k=5) using RTD. TABLE 7. Demand forecasting accuracy results using RTD.
                                                                            ACKNOWLEDGMENT
                                                                            (Muhammad Imran Zulfiqar and Ayesha Khalid contributed
                                                                            equally to this work.)
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