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AI — everyone is talking about it. After all, 92.1% of businesses have seen measurable results from using AI.

But here’s the thing. Simply plugging and automating it into an existing system won’t get you miraculous results. 

The truth lies in strategically reimagining key business operations with AI. 

For digital signage, one of the initial AI complimentary uses is through content creation and management. This is where AI can become a game-changer. 

How? With real-time data analysis, contextual recommendations, and targeted ads, you’ll get more accurate data and better systems to improve CX. 

When AI and digital signage intersect  

Crafting a successful signage network is all about getting the basics right. And on a day-to-day basis, it comes down to the simple (yet time and energy-consuming) things like creating, scheduling, and managing.  

Just ask your team; we’re sure they’ll resonate with these challenges: 

• Creating content across different departments 
• Getting content vetted and approved 
• Translating content for multilingual audiences 
• Deciding which content will go where and for how long 
• Preparing different versions of content to suit different types of screens

It’s a lot of time and effort that can be done with the assistance of AI. 

So, how can AI solve these challenges? With real-time data analysis and advanced algorithms, AI powers dynamic content creation and customization to:

• Generate translations of unpredictable text like news and sports
• Rewrite messages in your brand’s tone and style for your target audience
• Deliver personalized CX by using historical data to predict customer behavior 
• Create context-specific images with the right information for higher customer engagement

Before we jump into the different use cases, let’s look at the different types of AI tech used in digital signage. 

Types of AI tech used in digital signage (with examples)

If you think about AI as a tree, its branches consist of subsets like machine learning (ML), natural language processing (NLP), computer vision, and more.

• Machine learning (ML): These advanced algorithms analyze historical data and “learn” from it to understand user behaviors, track operational patterns, and make real-time recommendations. 

For example, ML is used in airport displays to detect flight delays and update new takeoff times and estimated arrivals in real-time.

• Natural language processing (NLP): Picture this as a translator that helps computers make sense of human language. Think virtual assistants like Alexa or Siri. When used in digital signage, you’ll get displays that don’t just capture eyeballs – We’re talking about ones that interact and engage with your audience on a whole new level. 

Take digital signs in public spaces, like hospitals. With NLP, they transform into virtual guides to assist visually impaired patients and visitors. Imagine this: A sign that converts text to speech and reads it aloud to help patients find their way, broadcast important updates, and announce next-in-line information. It is accessibility taken up a notch.

• Sentiment analysis: This sophisticated AI decodes human emotions for your marketing needs. With ML and NLP, it’s like giving AI a sixth sense to read the room – analyzing human tone, pitch, and overall surroundings to gauge the mood. Add this to your signage, and you’ve got signage that adapts content to your audiences’ mood.

• Imagine those large displays at mall entrances. Beyond grabbing customer attention, they can also become efficient mood detectors. If the system detects an upbeat mood, expect vibrant and chirpy messages on screens. But if it senses your customer is tired or stressed, it will display more calming and soothing messages. Recommendation systems: These systems analyze user behaviors and contextual information to recommend personalized and targeted content. For example, when used on college campuses, these displays can recommend courses and extracurricular activities based on students’ preferences and track record.

Why AI in digital signage just makes sense

Now, let’s move on to how you can actually use AI in your digital signage. Starting with the obvious — content generation. 

1. Automated content generation

a) Instant content creation: Whether you need some ideas for inspiration or more expanded content for your displays, AI helps you create content in an instant. All you need is a prompt to get things started. Mention details like brand voice, tonality, and pointers you want to cover and you’ll get content in seconds. 

P.S. Remember, the more specific your prompt is, the better your results.

For example: When you type in ‘safety tips for manufacturing units’ in AI content generators like ChatGPT, the results might be vague or generic, like ‘wear gloves and masks.’ 

But a more specific prompt like ‘top 10 safety tips for waste disposal in automobile manufacturing units. Give me industry-specific pointers that follow US safety guidelines’ gives you very targeted tips that can be plugged into your displays automatically. 

b) Dynamic content adjustment: AI in digital signs allows you to adapt your content in real time. It adapts intelligently in real time to pick up cues on audience size, viewer demographics, and composition. In seconds, it tweaks your content so it resonates with your audience better.

Additionally, it can “read” environmental factors from weather reports and make contextual recommendations accordingly. If you’re a restaurant owner, your AI-powered displays can be savvy enough to suggest ice cream to customers on a hot day and warm beverages on colder days. It’s about hitting the sweet spot of relevance — every single time!

Note: It’s always a best practice to cross-check content generated by AI, especially if it involves any math or heavy logical reasoning.  

2. Enhanced interactivity

a) Interactive engagement: AI transforms your signage screens into interactive channels. You can create more user-friendly experiences for customers using voice recognition and sentiment analysis. 

For instance, interactive kiosks are a great way to simplify wayfinding in complex places like malls and hospitals. But AI can take this up a notch. With voice commands and integrated mapping, it becomes even more user-friendly and accessible to guide customers of different abilities across your business.

One of Canada’s largest diagnostic centers has deployed L Squared to create more patient-centric experiences. Using digital screens, they share live wait times for each patient to reduce perceived wait times by 33%!

b) On-going feedback loop: The interactive nature of AI creates an ever-evolving feedback mechanism. When your customers perform actions on your screens, some complete them successfully while others might struggle. You can analyze this data to spot where customers face challenges to improve the content and interactivity of your signage.  

3. Personalized customer experiences

a) Targeted recommendations: Using recommendation systems, businesses can deliver customer-specific suggestions using AI to increase audience engagement. This is called responsive product recommendation.

In the hospitality setting, you can tailor activities for guests based on loyalty programs and display targeted recommendations for activities and local attractions. AI can also analyze social media trends and user data (with permission, of course) to tailor content based on a user’s interest. 

b) Facial recognition: If your digital signs are powered by facial recognition systems, they can detect age, gender, and mood in your audience. 

Here’s the cool part. Picture this: Your AI system detects more female faces in the crowd at a shopping mall. Just like that — It updates the display content to align with more female interests like fashion trends and makeup ads. It’s not just signage anymore —it’s smart, responsive, and incredibly in tune with its audience.

Facial recognition is also applicable to industries across the boards, including airports, retail, and hospitality. In fact, hotel giant Marriott has already started adapting facial recognition for quick and seamless check-ins. 

4. Improved operational efficiency

a) Strategic planning: AI can’t predict the future but can analyze past data and behavior to predict customer patterns. With predictive analytics, you’ll get insights into growing trends and preferences to help you tailor your content accordingly. And if you act on this fast, you’re bound to become a trendsetter. 

b) Automation: Look, we know content scheduling and managing takes time. Your team will have to set up personal reminders for when certain content needs to go up or taken up. But you’ve guessed it – AI can also streamline this process for you.

Thanks to predictive analytics, you can determine the best times to display certain types of content, optimizing viewer engagement. This way, you no longer need to manually research viewer traffic patterns, optimize posting time, and so on.

5. Seamless integration with other technologies

Let’s take IoT, for example. By marrying IoT with your digital signage, you unlock a whole new level of customer insight, particularly regarding how they interact with your promotional content. 

Imagine you’ve got 10 screens across various spots of your business. AI steps in to serve up key metrics – think engagement rates, interactivity levels, and so on, for each screen.

You’ll know which locations are buzzing with interaction and which ones aren’t quite hitting the mark. This knowledge lets you double down on what works, tailoring your content to play to the strengths of each location and driving up those conversion rates.  

Probable challenges + How to overcome them

Now that we know the juicy perks of integrating AI with your signage system, it’s a good time to prepare you for some probable challenges. The most obvious one being cybersecurity.

1. Data privacy and security 

When you’re dealing with so much customer data, top-grade security is non-negotiable. Here are a few musts:

• Ask for permission always: If you’re tapping into your customer’s data, it’s good to always seek out their permission first (and it’s also the law).

• Protect your network: Data breaches are costly – the $4.5 million kind of costly. Besides a hefty burn in your pocket, it’s costly to your customer’s trust. Some best practices:
  • Software that is always up to date
  • Regular testing out for any bugs and errors
  • Third-party certifications to vet your commitment to compliance
  • And when push comes to shove — you’ve got a damage control plan in case of attacks

2. The bias problem

How “good” or “bad” your AI system is depends on how you train it. It’s a slippery slope because AI models are often baked into discriminatory algorithms.

As we continue to grapple with solutions for AI bias, here are a few actionable steps we can take:

• Compliance: AI-related decisions should be consistent with industry and legal regulations. 
• Human touch: AI systems that incorporate human intervention and feedback loop often build more brand trust with an added layer of quality assurance. 
• Reinforced learning: This is an unsupervised learning technique that uses rewards and punishments to teach a system to learn tasks.

3. Outdated infrastructure

AI systems process vast volumes of data in milliseconds to provide us with desired outcomes. This is heavy-duty work that needs appropriate infrastructure and processing power. 

Here’s the problem: A lot of companies continue to operate with legacy technology that cannot handle AI implementation. 

The solution: Hold a 360-degree audit of your tech infrastructure. If your system is outdated, start a phase-out plan to invest in cutting-edge hardware, software, and infrastructure.

If you’re looking for a turnkey digital signage system, L Squared’s got you. Combine our powerful cloud CMS with AI to create stunning, unmissable displays that captivate, inform, and educate your audience like never before.

The future of digital signage 

When AI and digital signage intersect, the possibilities are endless. Improved productivity, streamlined workflows, and personalized experiences are only a few of the benefits.

Looking ahead, AI will only grow, and so will the success of businesses that harness it. What exactly will AI in digital signage look like in five or ten years time is hard to say, but here are some trends we can expect: 

• Advanced content creation capabilities: This includes tools that monitor screens and create hyper-local content for targeted audiences.
• Dynamic playlists: These include creating images dynamically for your signage. [Source]
• Metaverse: We’re calling it – AI is going to revolutionize CX in the metaverse. Imagine shopping in stores and having your own avatars try on clothes, testing out products, and beyond. 

As we navigate these exciting trends, the key is to stay open to adaptation and reinvention. And you don’t have to take giant steps all at once – start slow, build steady. You can start by gradually integrating AI through small steps like content generation. Experiment with tools and play around with your prompts. 

Next, keep an eye out for emerging trends and tools, and how they can enhance customer engagement and experience. And most importantly, remember to stay flexible and open — because change is a constant, even more so in tech.