How Ares-i is Transforming Retail Risk Management in South Africa with AI Innovation.

Xpert Decision Systems’ (XDS) innovative AI-powered facial recognition software, Ares-i, which was launched in 2024, has since shown its capability in helping transform risk management within the retail sector. As businesses face mounting challenges in a volatile economic environment, Ares-i remains an essential tool for proactively identifying, assessing, and mitigating risks that threaten operational stability and customer satisfaction.

The retail industry in South Africa is currently grappling with significant challenges, particularly as consumers experience economic strain following festive season spending. This environment has led to an increase in risks such as shoplifting and fraud, making robust risk management more critical than ever.

“Ares-i has been pivotal in shaping how retailers approach risk management,” said Vic Esterhuizen, Product Owner at XDS , a division of Mettus. “In a climate where threats continuously evolve, our platform empowers retailers to anticipate and respond to risks effectively, allowing them to focus on what matters most – their customers.”

Ares-i enables businesses to seamlessly integrate advanced AI technology with existing surveillance systems, thereby enhancing their security framework. By providing real-time analytics powered by sophisticated algorithms, Ares-i allows retailers to identify potential threats before they escalate. This proactive approach places retailers one step ahead of criminal activities and helps in building comprehensive watch lists of suspicious individuals.

In addition to addressing security threats, Ares-i prioritises customer relationships. By recognising and safeguarding loyal customers, the platform enhances the overall shopping experience. Retailers can also establish databases of identified criminals and set up real-time alerts to ensure rapid response to suspicious activities.

Recent trends in fraudulent activities – including payment scams and the rise of ‘dine-and-dash’ incidents in restaurants – highlight the increasing need for stronger security measures. XDS acknowledges this urgent requirement and is committed to supporting retailers in combating these challenges. 

The South Africa Artificial Intelligence in Retail Market size is expected to grow at a significant CAGR of 43.3% during the forecast period. AI technology helps retailers to analyse customer data and provide services according to customers’ expectations.

One of the most compelling opportunities AI offers is hyper-personalisation. According to research, 80% of consumers are more inclined to make a purchase from a company that provides personalised experiences, while developing customised recommendations can increase sales by up to 20%.

The e-commerce sector continues to thrive. Projections indicate that e-commerce users in South Africa will surge from 11.7 million in 2025 to 21.25 million by 2029. This growth is being driven by the rise in smartphone use, social media marketing, and dedicated shopping apps. Retailers embracing this digital shift are well-positioned for future success. Integrating Ares-i to an e-commerce application would enhance the security of the application, reduce risk and facilitate user experience.

As the retail industry in South Africa continues to face multifaceted challenges, Ares-i serves as a critical ally for retailers. By delivering actionable insights and facilitating informed decision-making, Ares-i helps retailers not only to protect their assets but also to foster a secure and inviting environment for customers.