Our take: Generative AI will benefit retail companies with strong digital foundations
Our take: Generative AI will benefit retail companies with strong digital foundations
We recently hosted a call with a technology professional who has over 20 years of experience in Artificial Intelligence (AI) and behavioral research, having worked at top- tier tech and retail companies. During the discussion, the expert shed light on the current and future implications of generative AI in the retail sector. The expert emphasized the growing use of consumer and operational data in both online and brick- and-mortar retail, highlighting how AI technologies can translate data to drive higher sales and margins. Notably, generative AI has the potential to streamline processes like product design, marketing, and data analytics for companies that may lack the necessary resources to invest in these areas independently. However, in the long-run, the professional believes that companies with a solid data infrastructure and established e- commerce channel are likely to reap greater benefits from the new technologies.
The key points of the discussion from the call included:
The key points of the discussion from the call included:
- AI refers to the simulation of human intelligence by machines. Initially, the term was used to describe the computer's ability to recognise patterns and make predictions based on those. With the advent of generative AI, we have progressed to a stage where computers can actually generate new knowledge and content such as images, texts, audios, videos etc.
- Data, the expert believe, will be the new moat.
- To train AI models effectively, companies should have relevant data, such as transaction records, product ratings, and seller ratings. The expert suggested that companies equipped with robust and diverse data are positioned to derive greater benefits and outcomes.
- The expert emphasized that generative AI can serve as a powerful tool even for companies with smaller data science operations. With the new tools, individuals without a background in computer science can now gain valuable insights from data. Moreover, these systems possess the capability to enhance, debug, and provide fast and high quality codes.
- Per the expert, companies are leveraging generative AI in customer service to provide high-quality responses to clients. This benefits both the clients, who receive faster and more accurate answers, and the company, which saves valuable time and resources as employees can handle multiple calls simultaneously.
- AI has the potential to transform personalized marketing by targeted advertising that reaches consumers at the right time, catering to their individual needs. AI can facilitate the design of company websites to create tailored experiences to each client's preferences, and it can be a powerful tool in marketing- from the inception of marketing ideas to campaign execution and delivery.
- The expert believes that generative AI is not a passing trend. There are strong indicators that suggest generative AI will continue to play a significant role in shaping our digital experience. However, we should monitor in the coming months how regulations and community influences will impact its ultimate form.
