Smart technologies should be inserted in every function and business process. The retail sector is transforming the value chain and the consumers engagement, thanks to the human ingenuity and AI combination. This is generating the beginning of a revolution. This is what we call Applied Intelligence. Today consumers globally are increasingly comfortable with technologies linked to Artificial Intelligence. A very clear and familiar example are the virtual assistants available in smartphones, speakers and intelligent systems.
According to a recent study by Accenture. The 44% of consumers use some type of virtual assistant. A third use the assistant at least once a day, and 86% report enjoying the experience. For consumers who do not have access to Siri, Alexa or Cortana, they can enjoy Artificial Intelligence experiences every day. Many technology companies, such as social networks or transport, use these technologies as part of their routine. Along with automated learning and advanced data analysis, they offer a constant flow of personalized content, interactions and better prices.
With this, consumers are open to the idea of a retail enabled by Artificial Intelligence. For 42% of consumers it is critical that the experiences of companies begin to establish new standards of interaction and service. However, within 11 industry groups, consumers rank retailers last. In terms of their ability to continually improve the consumer experience. and this is undoubtedly a red hot spot. Artificial Intelligence offers a unique opportunity. To present experiences that provide a better, more relevant and personalized service – and also more profitable. However, many traditional retailers remain behind.
Given the perceived complexity around AI solutions, resistance is understandable, but it will become costly in the long term. Unless they join, they will lose countless opportunities to develop meaningful relationships with their consumers. In fact, a strong implementation of AI and a data-driven decision-making culture will be limiting factors to determine retailer business success in a few years. The current outlook is still far away: 20% wiggles have implemented IA and / or machine learning. 50% with sales over one billion dollars do not have a specific function to evaluate new data analysis capabilities. When implementing IA approximately 40% do not have the data, skills, tools, culture and leadership appropriate
The AI will impact virtually all aspects of the operating model. It will become part of the DNA of the industry, generating value throughout the entire organization, particularly in areas such as consumer engagement, marketing or product marketing and operational applications. Data analysis will also allow companies to locate consumer trends in real time and predict consumer actions, better projecting the likelihood of a customer responding favorably to an ad, personalized promotion or campaign.
It will also be a critical element for labor productivity. 40% of the activities carried out by retail workers can be automated, so Human Resource leaders will have to determine how AI can increase processes managed by people, and also how to identify new roles and skills. required for a data driven environment. Intuition, coupled with the ability to develop actionable knowledge from data, will be the most important capabilities required to make decisions in the world of Artificial Intelligence.
It is indisputable that IT will play a critical role, but Artificial Intelligence is more than a technology strategy: it is a critical capacity that retailers will have to interweave in the company’s DNA and also in the entire leadership. Working together, leaders can quickly go through the three-stage preparation and launch cycle. The actions in each stage are what distinguish the winners.
The first stage is to build talent, which can be developed within the company or through strategic partnerships with agencies or external suppliers. The second stage involves building the capacity to manage data, and identify or develop an ecosystem that gives them access to the necessary data to make intelligence workable and abundant. Finally, the third stage involves implementation. Traditional retailers can’t wait any longer to enter the field of AI. They should look for opportunities to launch these strategies in their organizations and along the extended value chain.
