TDWI Insights on Using AI to Accelerate Retail
Introduction
Today's consumers move quickly and have numerous retail options. They are not hesitant to switch loyalties if their needs are not met. Retailers must operate at the speed of the consumer to remain competitive, as delayed or inaccurate demand forecasts can lead to out-of-stock items and excess inventory, negatively impacting customer loyalty and margins.
Key Drivers for Retailers
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Differentiated Customer Experience
- Retailers aim to provide unique and satisfying customer experiences, which are influenced by various factors like proximity to stores and availability of products.
- A 360-degree view of customers helps in understanding their behaviors and preferences, enabling better engagement.
- Chatbots and digital assistants powered by AI and analytics play a crucial role in delivering personalized customer support and support.
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Sustained Operational Efficiency
- Retailers need to focus on cost and revenue management.
- AI-powered digital assistants can provide real-time operational intelligence, helping store associates resolve issues before they affect customers.
- Cloud-based geospatial analytics can optimize site selection and store placement, considering various factors like population density and competitor locations.
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Relentless Innovation
- Customers expect continuous innovation in products and services.
- AI-enabled tools are used in research, development, and manufacturing to create new and improved offerings.
- AI-driven computer-aided design tools and mixed reality features aid in ideating, simulating, and optimizing product designs.
Key Applications of AI
- Chatbots for Customer Support: Around 37% of respondents in a TDWI survey highlighted chatbots as a key application of generative AI.
- Generating Marketing Content: Another significant application involves creating marketing content, with 28% of respondents citing this.
- Onboarding New Employees: AI can also assist in onboarding new employees, with 26% of respondents indicating this as a use case.
- Generating Developer Code: AI is used to generate developer code, with 25% of respondents mentioning this.
- Analyzing Company Data: AI can act as a front-end tool for analyzing company data, with 20% of respondents finding this beneficial.
Conclusion
To stay competitive, retailers must leverage AI to enhance customer experiences, optimize operations, and drive innovation. By integrating AI into their workflows, retailers can better predict customer behavior, streamline operations, and deliver personalized, high-quality products and services.