How Generative AI is Driving End-to-end Impact in the Retail Value Chain

Retail has woken up to the potential of generative AI technologies revolutionizing critical aspects of the industry. The integration of generative AI is, in fact, driving reinvention in the retail landscape by creating unprecedented opportunities for enhancing customer service and boosting operational efficiency. Retail leaders who adapt, innovate and continue to invest in generative AI will remain competitive and meet evolving consumer expectations.

According to Accenture’s report on Retail Reinvented: Unleashing the Power of Generative AI, 75% of retail executives view generative AI as instrumental to their business’s revenue growth. And 93% of retail CXOs are planning to scale up their investment in AI and generative AI over the next 3–5 years—in terms of time, money, and human capital.

Generative AI is transforming how consumers shop by personalizing consumer interactions and automating routine purchases—enhancing convenience and building deeper consumer loyalty. Additionally, it is reshaping how people work. AI tools are providing retail employees with data-driven insights, enabling them to offer personalized customer service—redefining roles, focusing on reskilling and continuous learning, and preparing the workforce for a more digital future. This technology is also reinventing how retail businesses operate by streamlining both back-office and customer-facing processes—thereby leading to reduced operational costs and improved customer satisfaction.

The report lists five imperatives that retailers need to address to fully leverage the unique potential of generative AI in the end-to-end value chain. These include prioritizing business capabilities across the entire retail value chain; understanding and enabling an AI-enabled, secure digital core; reinventing ways of working; mitigating AI risks for all retail stakeholders; and driving continuous reinvention. Read More

NEWS & VIEWS

• Strengthening Consumer Relationships with Data and Generative AI

With an abundance of retail options coupled with poor customer service, consumers are increasingly facing challenges in their buying decisions. This impacts customer loyalty and revenues for retailers. According to Aditya Priyadarshan, MD and Lead – Retail, Accenture in India, retailers must leverage the immense potential of data and generative AI to power hyper-personalized experiences and deepen consumer relationships and accelerate reinvention at scale. He shared his views while moderating a retail leaders’ panel discussion on ‘The Power of Data-driven Decision Making’ at the recently concluded Phygital Retail Convention in Delhi. Read More | Discuss

• How Generative AI Helps Retailers Redefine the Role of Stores

The twin forces of cutting-edge technology and shifts in consumer trends are powering reinvention in the retail industry. It promises to shape the future of customer experiences, driving greater omni-channel synergies and leading to evolved innovation, efficiency, and customer retention. At the recent ET Great India Retail Summit – Aditya Priyadarshan, MD and Lead – Retail, Accenture in India, shared insights on how generative AI enhances customer experience—bridging online and offline realms—optimizes operational efficiency, and helps retailers redefine the role of stores. Read More | Discuss

• Decluttering the Shopping Experience for the ‘Empowered Consumer’

Accenture research report, The Empowered Consumer, highlights the issue of ‘information overload’, with 76% of consumers in India feeling inundated by too much choice and 74% saying they are bombarded by advertising, resulting in 88% abandoning purchases in the last three months of 2023. Vineet R. Ahuja, MD and Lead – Strategy and Consulting, Accenture in India said, “Consumer-facing companies will need to rethink how products and services are branded and marketed, making it easier for shoppers to navigate through the noise and make confident purchase decisions.” He further advocates that new technologies such as generative AI will help companies become data-powered and “delightfully human”. Read More: ET Retail | Financial Express | CNBC Storyboard18

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