The news: Several retail companies are running tests to gauge how and where generative AI may help improve their front- and back-end operations.
While it is still early days for the technology, the majority of consumers “somewhat” or “strongly” support brands using the technology to handle a variety of tasks, including customer service inquiries and product recommendations, per Dentsu. That suggests that, at the very least, there’s little risk in experimenting with the technology.
Building a better business: Amazon has been using machine learning over the past quarter century for everything from developing personalized ecommerce recommendations to optimizing fulfillment center pick paths to navigating drones for Prime Air, noted the company’s CEO, Andy Jassy, in his annual letter to shareholders. But generative AI promises to “transform and improve virtually every customer experience,” he wrote.
While there is a wide array of potential use cases for retailers, we believe that some of the most viable and valuable ones include:
The big takeaway: Generative AI has a ways to go before it delivers on its promise as it currently requires significant supervision.
Go further: Read our ChatGPT and Retail report to dive deeper into generative AI’s growing role within the industry.
This article originally appeared in Insider Intelligence's Retail & Ecommerce Briefing—a daily recap of top stories reshaping the retail industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.
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