July 19, 2023 (press release) –
From revolutionizing the nuts and bolts of supply chain operations to turbo-charging customer service, generative artificial intelligence (genAI) stands on the forefront of innovation in retail. Its ability to fabricate hyper-customized content is turning the tables in marketing and communication strategies, says GlobalData, a leading data and analytics company.
Kiran Raj, Practice Head of Disruptive Tech at GlobalData, comments: “In a retail environment where the product-to-experience shift is increasingly significant, genAI can enable the creation of immersive, personalized experiences, integrating virtual and physical retail spaces in a manner that resonates with modern consumers’ expectations. Moreover, it is no longer about a one-size-fits-all engagement; rather, it is about a tailor-made experience catering to individual needs”
Saurabh Daga, Associate Project Manager of Disruptive Tech at GlobalData, adds: “By leveraging key data points from customers’ purchase history and preferences, genAI can facilitate building personalized shopping experiences and targeted marketing strategies. The technology can empower retailers to deliver superior service at reduced costs, leading to greater customer satisfaction.”
GlobalData’s latest Innovation Radar report, “Cognitive revolution: genAI meets retail,” offers a comprehensive view of how the disruptive technology is being deployed across the retail value chain, from inventory management and personalized marketing to customer experience and support.
GenAI can transform retail operations such as inventory planning, product recommendations, and customer service. Promising genAI applications include creating new product designs based on defined criteria and sentiment analysis to predict customer trends.
Traditional retailers like Carrefour and IKEA are using genAI to streamline operations and augment customer support. Meanwhile, e-commerce players like Amazon, Shopify, and Instacart are leveraging genAI to improve online shopping experiences and increase cart conversion rates. Big technology companies such as Google and Salesforce are offering genAI solutions to help e-commerce players as well as retailers optimize their online customer engagement.
Daga concludes: “While there are inherent challenges in implementing genAI, particularly in consumer-facing sectors like retail, the potential for substantial progress is undeniable. Challenges such as content quality and privacy must be managed through strong governance. Small and medium retailers can benefit from strategic partnerships to overcome entry barriers required to build the supporting technology, infrastructure, and personnel for genAI implementation.”
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