Generative artificial intelligence (AI) is set to revolutionize the retail industry by transforming store operations, enhancing workforce capabilities, and driving new growth. This technology offers dual benefits: improving cost efficiency and productivity while also enhancing customer experiences. Generative AI can be a catalyst for leaner, more cost-effective store operations and how it can empower store associates with better knowledge and decision support.
Automating retail tasks and streamlining store operations with generative AI
Generative AI can significantly streamline store operations. First-line managers believe that 45 % of their roles could be automated, while experts suggest that up to 60% of entry-level blue-collar jobs could be automated.
Automation can occur in three main areas. First, automating repetitive tasks allows generative AI to handle routine tasks such as employee scheduling, predictive maintenance, customer inquiries, and onboarding new employees. This frees up store associates to focus on higher-value activities like customer interaction and sales.
Second, enhanced decision-making is facilitated by generative AI acting as a copilot for store associates, aiding in complex customer queries and supporting inventory management and production planning decisions. This leads to better and faster decision-making.
Third, elevated store management is achieved as generative AI shifts the focus of store management from task execution to validation and action-taking. It can automate reporting analysis, summarize insights, and assist in action planning based on daily performance reports, compliance issues, waste reduction opportunities, and fraud detection.
Fueling retail growth with AI solutions
By equipping store associates with generative AI, they can transition from task-oriented roles to more customer-facing roles, ultimately driving higher sales and customer loyalty. Customer support is enhanced as generative AI copilots help store associates answer both basic and complex customer questions, improving the customer service experience.
Time reallocation is achieved as the time saved from automating repetitive tasks can be redirected to activities that customers highly value, such as personalized service and engagement. Generative AI can enable hyper-personalized customer outreach, offering promotions and product recommendations that are highly relevant to individual customers, such as meal planning and inspiration.
Despite current consumer concerns about data privacy, particularly with user-facing AI solutions, personalized promotions remain an area of high interest. In turn, retailers should explore generative AI solutions and build capabilities in anticipation of future customer interest.
Benefits of generative AI implementation in retail
The integration of generative AI into store operations holds significant potential for cost efficiency and sales growth. By strategically launching high-impact generative AI solutions and democratizing their use across the workforce, retailers can rapidly adopt this transformative technology and generate substantial improvements in store productivity, customer service, and sales growth.
