AI offers the retail sector a major opportunity

Photo by Gerard Siderius on Unsplash

There are numerous thriving use case initiatives, but professionals in the sector remain split between scepticism and fear of missing out on AI-generated benefits.

On the one hand, investment in AI requires a major commitment. Information Systems Divisions are seeing interest grow in this technology, but are waiting for tangible use cases and solid returns on investment before jumping in.

Inflation, the consumer crisis, and problems with some brands, especially in ready-to-wear, with the most recent failures being IKKS and Burtons of London, only increase caution among businesses.

On the other hand, innovation seems vital to allow businesses to remain competitive, especially in the present economic context, which is putting a strain on some sectors, especially food.

Brands struggling with serious financial difficulties, need new solutions to deal with them. At the same time, the rise of the circular economy, and the need to verticalize the value chain, also highlight the need to adopt new technologies, for instance with solutions aimed at preventing food waste.

Customers and colleagues, a two-fold experience to consider

Given these multiple challenges, the customer experience is a major challenge for retailers. The strong return of high-street shopping after the health crisis jeopardised e-commerce players such as Cdiscount or Fnac. Brands now need a smooth, personal, multi-channel experience, in order to stand out from the competition while leveraging digital technologies.

The American giant Walmart may be considered a model to follow. In 2017, the company instituted a major turnaround, building on innovation and AI. Home deliveries by drone, optimisation of the supply chain, customised offers: the company is exploring all options.

However, the key to success depends on responsible use of AI on behalf of customers, and also colleagues, who play an essential part as well. Walmart has therefore placed the human at the centre of its digital transformation, providing its colleagues with the appropriate tools to meet their expectations and support them, an essential strategy to ensure their commitment and satisfaction.

Building on brand image

In the present context of balancing consumer spending, the brand has become a crucial stand-out factor. Brands must build on their image and the associated customer experience. The emotional link with customers is more important than ever to ensure brand durability.

This link is vital, as consumers are becoming more aware and demanding in their buying behaviour, paying increasing attention to durability and circularity. Brands have to adapt to this new context by making use of digital technologies, while remaining faithful to their values and identity.

The future of retail is promising, but promises to be demanding. Brands that know how to make use of digital technologies, above all of AI, and also stay loyal to their values and identity, will be best placed to succeed.

Recently, the criticism of Google and its Gemini tool for creating images of people that led to historical inconsistencies, is one example among others showing how responsible, well-controlled AI is essential to preserve brand image.