Artificial intelligence (AI) is gaining popularity in the US retail sector, as major players like Walmart, Lowe’s, Rent the Runway, and Victoria’s Secret are investing a lot more in AI technology, according to Barron’s.
AI has long been a part of retail operations, but the advent of generative AI marks a new threshold in innovation, using sophisticated machine learning to closely mimic human intellect and produce a variety of material.
According to McKinsey’s predictions, there might be significant economic benefits from the widespread deployment of generative AI, especially in the retail and consumer goods sector. This technology has the potential to change a number of operational aspects, including supply-chain optimisation and customer service.
According to a recent Techstrong.ai survey, which was released in January, 41% of retail industry executives are already using AI in some capacity, and more than half of them could name six or more use cases. Furthermore, according to results from NVIDIA’s poll, 35% of participants have started prototype AI initiatives.
These high estimates are consistent with research conducted by McKinsey in July of last year, which suggested that generative AI could produce between 2.6 trillion and 4.4 trillion dollars in global corporate profits yearly.
Barron’s analysis predicts that the integration of AI will improve labour costs and a retailer’s bottom line. However, it cautions against having high expectations for the near future as merchants continue to hone their tactics. However, over the next ten years, industry observers predict a favourable trajectory for artificial intelligence’s revolutionary impact on retail.