Article
Time to pilot and test AI across your organisation.
Published
15 May 2024
Generative AI is no longer part of a retail revolution – it is driving it. Moving beyond a futuristic concept, AI is reshaping the pace and direction of retail altogether.
Moving from evolution to revolution
In 2023, Gen AI went mainstream. AI became the buzzword on everyone’s lips, sparking conversations from coffee shops to corporate boardrooms.
By the end of the year, leading retailers and brands were already piloting available AI tools. Considering the relative ease of setup and high return on investment for early and effective implementation, 2024 is expected to be the year of adoption.
High economic potential
A study by Implement, commissioned by Google, estimates a EUR 500 billion economic potential among digital European front-runner (D9+) countries. Embarking on a Gen AI journey may seem challenging, but it does not require a complete overhaul from the outset.
Instead, we believe in starting with small-scale pilots that target high-impact areas where it can quickly show value. This approach allows retailers and brands to test and learn quickly, thereby leveraging quick wins, building organisational expertise and laying the groundwork for scale.
The retail industry is rapidly embracing AI technologies across the entire value chain. Industry giants are taking the lead, and the active engagement of giants such as Amazon, Walmart and Unilever should be a wake-up call for smaller counterparts, who risk falling behind in the competitive landscape. If you have not already started, you are lagging behind. There are many opportunities across the entire value chain, and it is up to you to identify relevant use cases for your company.
Examples from the retail world
Test today, win tomorrow
Our research team at Implement has observed significant efficiency improvements, with an average increase in productivity of 32% and an 18% enhancement in quality attributable to generative AI.
We believe in adopting an experiential mindset to truly harness the full potential of Gen AI. You cannot wait for the perfect data set. Your data may not be fully integrated end to end, but you can still carve out data that unlocks a specific AI use case and test from there. If the initial evaluation is promising, start scaling your data enablement efforts.
The data you have and are accumulating now could be the catalyst for future AI-driven use cases, paving the way for increased productivity, personalised shopping experiences and exploitation of untapped revenue streams.
Three ways Implement has helped companies pilot their AI capabilities
- Leveraging ChatGPT to strengthen the foresight function’s ability to spot trends
- Testing the response of AI-generated visuals for marketing campaigns
- Integrating AI into demand sensing/forecasting
Balancing long-term strategy and quick wins
With the many opportunities of AI, it is important to balance long-term strategy with quick wins to acquire important use cases, engage the organisation and free up time and money to fund the (longer) journey ahead.
One approach we both advise and like to follow ourselves when assessing the potential of AI is to conduct “strategic experiments”. The purpose is to quickly unlock insights into potential impact scenarios that can be used to assess whether to pursue the pilot into a business solution.
The process for strategic experiments is as follows:
- Ideation and strategic alignment
- Data preparation
- Prototype, test and evaluate
- Scale or iterate
If your company is not already piloting and testing AI across your organisation, it is time to get started. Dare to fail fast, learn fast and find your way in navigating the almost endless opportunities of AI. We have extensive experience helping retailers and brands on their AI journey and would be happy to assist you as well.
This article is part of a series published on the topics of our 2024 Retail & Consumer Goods Viewpoint. If you would like to receive the viewpoint to learn more about this and five other important industry topics, please reach out via the contact info below.
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