Dive Brief:
- Retailers and consumer packaged goods companies are investing in data and AI more actively than any other industry, according to a Databricks survey conducted by MIT Technology Review Insights of 600 technology executives published this month.
- More than half of retail leaders say their company is experimenting with generative AI, the report found. Supply chain optimization via AI-powered tools is the most high-value use case in the industry over the next two years, retailers in the survey said.
- Retailers plan to take different strategies to reach their AI goals, with one-quarter preparing to use LLMs from vendors and around 14% aiming to build capabilities in-house. The majority are considering deploying both approaches, according to the report.
Dive Insight:
The retail industry is pursuing better customer and employee experience, optimized operations and more visibility as generative AI adoption moves forward.
But as retailers chart a path to implementation, industry groups are underlining the need for responsible deployment.
The National Retail Federation’s Center for Digital Risk & Innovation published four principles to guide AI use in the industry in November, covering governance and risk management, customer engagement and trust, workforce applications and accountability. The NRF’s center said it intends to continue proposing best practices.
Retailers are looking to deploy generative AI internally and embed the technology in customer-facing applications. Amazon integrated AI to help sellers quickly create product descriptions in September.
Walmart is another early adopter, rolling out an internal generative AI-powered assistant for employees in August. With plans to expand access to reach around 75,000 employees total, workers use the tool to speed up the drafting process, summarize large documents and enhance creativity.
Most retailers are bullish on AI’s benefits. Four in 5 retailers expect using AI to boost efficiency in the industry by more than 25% over the next two years, according to the Databricks report.
But not all companies in the industry are gunning to lead implementation efforts. Target’s VP of Data Science Melissa Ludack referred to the company’s position in the race to embed generative AI as a “strategic planner,” at a conference earlier this month, according to CX Dive.
