Retailers around the world are experiencing a paradigm shift and using generative AI to redefine customer interactions, optimize operations and increase employee productivity. This shift is taking place in a number of areas, including major brands such as Best Buy and innovative applications from companies such as Instacart and Bricorama. According to a recent Accenture study, 75% of retail executives see generative AI as essential to revenue growth, highlighting its importance to the future of the retail industry.
Generative AI is fundamentally changing the way consumers interact with brands. Instacart's generative AI plugin, for example, allows customers to request recipes and seamlessly order all the necessary ingredients for home delivery. This simplifies the shopping process and personalizes it to an unprecedented degree.
Bricorama, a leading home improvement retailer in France, has launched "pAInt"," an AI-powered shopping assistant that inspires and recommends painting projects. PAInt suggests styles, advises on color types and integrates with Bricorama's e-commerce systems. In this way, pAInt offers a customized shopping experience that ensures product availability and provides practical guidance for the painting process.
Such innovations highlight the potential of generative AI to drive personalization and streamline the customer journey. AI agents increase efficiency and customer satisfaction by taking over complete tasks from start to finish, setting a new standard for the shopping experience.
Employee skills
Generative AI is revolutionizing the customer experience and changing the way employees work. Accenture's study shows that generative AI can automate 36% of functional retail tasks and augment another 28%, significantly changing the retail work landscape.
For example, retail associates at the checkout can use AI-powered applications to offer personalized assistance. If a customer needs help rearranging their patio, the employee can quickly access their preferences and use AI to create virtual layouts that offer real-time design scenarios. This improves the customer's decision-making process and provides comprehensive solutions that increase customer satisfaction and sales.
In order to use generative AI tools effectively, companies need to create a favorable environment for their employees. Developing talent models, programs, policies and practices that incorporate continuous feedback and improvement is critical to maximizing AI capabilities and ensuring a seamless blend of human intelligence and AI.
Optimizing operations
They are integrating generative AI into retail operations, which promises significant efficiency gains and cost savings. Retailers can achieve leaner management across the entire value chain, from supply chain management to inventory control and merchandising.
A robust digital core is essential to realize the full potential of generative AI. This includes establishing an integrated, intelligent platform that supports multiple business functions and provides real-time insights and automation. More than half of retail executives say inadequate data formats prevent them from fully utilizing AI capabilities, highlighting the need for a solid data foundation.
