AI is creating US $ 340 bn cost-saving opportunity for retailers!

by Apparel Resources News-Desk

05-January-2019  |  2 mins read

AI in apparel retail sector
Image Courtesy: internetofbusiness.com

Artificial intelligence (AI) in retail is being used in various ways across the entire product and service cycle—from assembly to post-sale customer service interactions.

According to a new global study from French technology services major Capgemini, the use of AI offers over US $ 340 billion cost-saving opportunity for retail companies that are scaling and expanding the scope of their existing deployments.

Although so far just 1% of retailers have achieved this level of deployment so far, as per the results from the study titled “Building the Retail Superstar: How unleashing AI across functions offers a multi-billion dollar opportunity”.

The study showcases that most retailers are aiming their AI efforts on sales and marketing when there is a significant opportunity to unleash AI use cases across the value chain.

“Our research shows a clear imbalance of organizations prioritizing cost, data and return on investment (RoI) when deploying AI, with only a small minority considering the customer pain points also.These two factors need to be given equal weighting if long-term AI growth, with all of the benefits it brings, is to be achieved.” – Kees Jacobs, Vice President, Global Consumer Products and Retail Sector, Capgemini 

The researchers, for the study, looked at 400 global retailers that are implementing AI use cases at different stages of maturity. These retailers also represent 23% of the global retail market by revenue.

It also includes an extensive analysis of public data from the world’s largest 250 retailers, by revenue.

The researchers found over a quarter, around 28%, of retailers were deploying AI in 2018, a significant rise of AI deployments from 17% in 2017, and a seven-fold hike, 4%, from 2016.

Dispelling fears of major job losses due to AI deployment, the results showed that 71% of retailers agreed that AI was creating jobs today, with over two-thirds (68%) of the jobs being at a senior level (coordinator level or above).

Meanwhile, 75% claimed that AI has not replaced any jobs in their organization so far, the study showed.

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