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With the retail sector rapidly changing and the needs of consumers continuing to evolve, any business that fails to adapt will inevitably fall behind. In general, human beings find change difficult, but being at the forefront of technological improvements like AI have never been more important and the change needs to be led by the decision makers at the top.
Artificial Intelligence (AI) has already made a seismic leap forward in the retail sector and is now perceived as an imperative tool for all businesses regardless of size. Amazon, Walmart, Apple, and IKEA are just some of the biggest household retailers using AI today. These pioneers led the way at a time when solutions were still in development, and so it was likely more costly and time consuming than it is right now. With its boundless possibilities and use cases, AI is already at the epicentre of many business strategies looking to grow their consumer base.
As a result, many retailers will be asking themselves the same question: “Should I be one of the first adopters of AI in the retail sector, or is it better to wait until more is known?”
AI - a waiting game?
AI is the biggest technological advancement since the dawn of ecommerce. Where that represented a new channel to market, AI is more about how to structure and engineer your operating model. Every touchpoint is digitized and connected so AI can take that information and generate tradeable intelligence.
Ultimately, AI isn’t black or white and there are a lot of second stage mover advantages. Leadership teams are under more pressure than ever before to find profitable solutions that will help to streamline operational processes that may not have been possible without AI. However, and especially during the cost of living crisis, the ability to invest can be more difficult than it was a few years ago as budgets have tightened.
Some may argue that AI is still in its infant stages, and so it’s better to wait until the technology has matured and become more established. However, this thinking is a huge mistake for brands looking to scale their business.
Truthfully, more advanced AI solutions may still be finding their feet, but most of the technology that businesses could be adopting has been on the market for decades and has already seen wide success across the retail sector.
While full scale adoption of AI is currently out of reach within the industry, it is important for brands to build a roadmap for AI adoption. Even implementing AI in small ways can help your company in the years ahead. Unlike the birth of ecommerce, AI isn’t all encompassing - it allows businesses to focus on different elements of their operations such as demand forecasting. AI priorities will vary from brand to brand, and its implementation will be customized depending on the needs of the business.
Businesses that fail to start acting now will be playing catch-up in the years to come, whilst early adopters will be able to make faster, more accurate, personalized, data-driven, and profitable decisions. Those pioneering AI in their business models will also be seen as market leaders and disruptors; open to revolutionising their processes to increase revenue, profits, and brand perception amongst their customer base.
Deployment takes time
Implementing a successful, considered AI strategy is time-consuming, but highly rewarding. By adopting AI now, businesses will have more time to develop and fine-tune their AI practices; after all, a tailored approach means fully understanding your customers’ needs and desires in order to produce a worthwhile ROI.
There may already be successful models that you could look to follow either from current industry leaders or competitors. However, machine learning can take months of refinement before it begins to accurately automate tasks, and for this reason, it’s important that data is continuously monitored and audited during this period.
Even once your AI-powered technology is up and running, your customers and employees need to be on board with these changes – this is where clear communication comes in. Integrating AI into your retail business is as much about cultural change as technological change, and this can only be achieved over time. An ill-considered AI business process can seriously affect the morale and ultimately the productivity of employees, as well as the satisfaction and revenue garnered from customers.
Employing AI systems could mean job roles and daily tasks need to be re-evaluated, so training is vital to ensure that employees understand what is expected of them and how technology will benefit their roles in the long run.
With all this in mind, it’s better to get started sooner rather than later.
Starting your AI journey
As with any successful business strategy, understanding your market and consumers is the first step to integrating AI into your business. Even if this has been already established, it’s worth re-examining your customers’ pain points and overall goals, as well as their relationship with your brand. Researching the current market and where it’s headed can also help you figure out how best to position your business. From this, you can start taking a closer look at your business’ internal processes to see what efficiencies can be implemented to streamline operations.
Once you have fully analyzed your customers’ needs, the market, and your internal processes, you are now in the enviable position to evaluate how and what specific AI-powered technology would benefit your business the most. From here, you can set out your roadmap to success, with actionable and realistic milestones to ensure you are making the progress you hope to achieve.
Understandably, this is no mean feat, and it could be daunting for business leaders who are new to the possibilities of AI, particularly if your workforce lacks an existing understanding of machine learning and business change management. However, focusing on some key initial areas and objectives and how AI can solve them is the first touch point. Our recommendation is to hire a third-party expert to take charge of this integration or source a reputable consultancy agency qualified to assist you with your AI-powered endeavours.
Stay ahead of the pack
Simply put, it is our belief that all retail brands need to adopt AI as soon as feasibly possible; millions of companies worldwide are already leveraging the power of AI to their advantage.
Businesses investing in AI now will reap the rewards in the years to come. As AI becomes part of standardized business strategies and processes, those who fail to research and invest now will face a monumental uphill battle against their competitors who have already taken the first step. If you're currently not in a position to make a full transformation, even making small steps can start to future proof your business.
Do you know how best to implement AI into your business? If not, we’re on hand to help streamline and revolutionise your operations. Here at Thought Provoking Consulting, our expert team of experienced consultants and business partners can work with your organization to develop a tailored AI roadmap that will deliver increased revenue, as well as enhanced customer and employee satisfaction.
With years of experience in the ever-changing world of retail, we can help put your business ahead of the pack through successful AI integration.
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