Increasingly, retailers are using generative artificial intelligence (AI) to broaden their market share while personalizing their content for customers. Generative AI can personalize and automate content based on an analysis of current market trends, consumer preferences and historic sales data. Essentially, retail-focused AI solutions are predicting what type of promotional content will appeal the most to each customer, thereby increasing the effectiveness of marketing campaigns and lowering the cost. It can also help automate the supply chain, smooth workflows and help with demand forecasts.
Today, there is evidence that retailers are fully embracing generative AI. A recent AI benchmark study by search solutions provider Lucidworks gathered input from over 6,000 employees involved in AI technology decision-making. The study included respondents from nearly 300 retail companies worldwide. The goal of the study was to create generative AI best practices.
The research found that 93% of companies across industries plan to increase their spending on AI within the next twelve months. The retail sector mirrors this trend closely, as 92% of retail businesses plan to ramp up their investments in generative AI. However, the survey found differences depending on location. 100% of Chinese and Indian respondents said they plan to increase AI investment, compared to only 92% of U.S. participants.
"Now is the perfect moment for retailers to harness the potential of generative AI," said Mike Sinoway, CEO, Lucidworks. "These emerging technologies carry profound implications for advancing automation, improving the customer experience, and revolutionizing data-driven decision-making. Our clients are already exploring innovative AI applications in knowledge management and the customer buying journey. Those agile enough to adapt their strategies are poised to secure a distinctive competitive advantage."
LucidWorks noted that the outlook on generative AI is predominantly favorable among industry executives and managers. Nearly 50% of retail respondents have a positive view of AI, one of the highest percentages across the industries that were surveyed, while only 12% have a negative view. One of the biggest concerns around the new technology is job displacement and security. Security apprehensions cut across all surveyed industries, followed by concerns about the accuracy of AI-generated outputs, the need for transparency in understanding AI-based decision-making processes, and ensuring responsiveness in terms of both timeliness and tone.
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