The Impact of AI: Retail Re-invented

Embracing the AI shift

Working in the technology sector, I’ve always maintained a keen interest in the latest ways of working and the adoption of new business applications for example, the move from outdated open-source POS systems to modern, cloud-based, scalable solutions. I feel that, lately more than ever, the ways of working have experienced a shift, significantly driven by Artificial Intelligence (AI). Gone are the days of spending hours on research and data analysis, now AI can handle much of the heavy lifting. 

As users, we can simply give the computer a command, instruction or question, and in return, we receive heavily researched information, documents and data analysis all within seconds, providing us with the foundation to apply our own analysis and cognitive thought.  But what does this mean for different industries, and how will AI technology impact, improve or worsen impact those industries?  

I read an article recently in ‘The Times’ stating that a third of senior leaders have yet to adopt AI. This, of course, implies that two-thirds have adopted AI, which is significant progress. But it poses a number of key questions: What are the barriers to adoption for these leaders? Is the technology not yet trusted to support the key decision-making and workload of senior leaders? Are leaders lacking confidence in their underlying data?   

 

The Retail Industry’s AI Journey

When I think specifically about the retail Industry, the fascinating thing is that when it comes to revenue and sales, retail organisations have often been at the forefront of data science usage, partnering with marketing and technology companies to segment customers, define algorithms and make predictions based upon detailed data analysis.

I can only imagine how much investment retail organisations have invested in complex algorithms over the years. Now, it is only to be somewhat replaced by self-learning AI models provided by out-of-the-box capability within business applications.  

 

Microsoft CoPilot for retail

Microsoft’s strategy to integrate CoPilot into its business applications is a game-changer for many industries, including retail. CoPilot enhances productivity through its out-of-the-box capabilities.

Retailers can now leverage CoPilot for:

• Personalised customer interactions
• Proactive customer service
• Enhanced decision-making
• Improved supply chain management, including journey mapping and routing

 

What’s changing in retail?

So, what is changing in the retail industry? The obvious answer is everything. Everything from marketing to customer orders, customer fulfilment, demand and forecasting, and general operations.  

AI can improve each area as long as a retailer is ready to embrace the journey. A retailer’s priorities should be activities which enable the business for AI. The obvious place to start would be to improve customer-driven insights and customer-facing processes. As previously mentioned, retailers have been leaders at this over the years.   

Alternatively, It could be time for retailers to leverage AI technology within their supply chain and inventory management functions. A study conducted by McKinsey shows that retailers who invest in AI have seen revenue increases of 5%.  

Priorities and objectives should be shifted to ensure that the retailer is scalable in the world of AI. This would require programmes of work concentrating on data infrastructure, small scalable solutions, delivered by specially trained resources.  

 

Looking ahead

As technology experts, we know it’s not simple to implement AI in large organisations, which makes it more important to select the right AI partner to ensure that the retailer benefits from the expertise of the technology sector. Keep a look out for a future piece about how to select the right partner and deciding factors you should consider. 

To find out more about our AI offerings and how Hitachi Solutions can support you on your AI journey, explore our two-day AI Kickstart workshop here.