Jumbo ends AI experiment aimed at combating shoplifting
Supermarket chain Jumbo has discontinued its use of artificial intelligence to detect shoplifting, citing concerns about customer experience and societal impacts. CEO Ton van Veen confirmed the decision, stating, “We tried to use technology to recognize deviant behavioral patterns, but we won’t continue with it.”
Jumbo announced at the start of the year that it loses over 100 million euros annually due to shoplifting, a significant blow to the company’s bottom line. “That’s money we can’t pass on to customers in the form of lower prices,” said Van Veen.
This year, Jumbo managed to reduce losses from theft by 30 million euros, cutting theft-related losses to 1 percent of total revenue. “We’ve reduced it by a third, but I believe it should be brought down to no more than half a percent of turnover,” Van Veen said. “These savings can then be passed on to our customers.”
Jumbo had implemented AI trials earlier this year to analyze customer behavior and identify potential shoplifters based on deviations in patterns. The experiment included analyzing surveillance footage and conducting targeted random checks at self-checkout counters. Despite these efforts, the initiative failed to meet expectations.
