An EY survey released on Thursday reveals that over 70% of Indian retailers have plans to adopt Gen AI within the next 12 months. The majority of retailers aim to utilize Gen AI to improve customer experience, drive innovation, and reduce costs. The survey highlights the perceived value of Gen AI, with 6% of Indian retailers already having implemented the technology.
Traditionally, the retail industry has relied on data to predict consumer behavior and handle inventories. However, with the potential benefits offered by Gen AI, 71% of retailers in India are set to embrace the technology in the coming year. The global retail investments in AI, currently estimated at $5 billion, are projected to reach $31 billion by 2028.
The EY report further emphasizes the significant impact of Gen AI on the retail sector. Around 88% of surveyed retailers believe that Gen AI will have a medium to high influence on their businesses. It is predicted that Gen AI could boost the profitability of the retail sector by 20% by 2025. The implementation of Gen AI not only reduces overheads but also enhances sales through tailored consumer experiences. Even local retailers can now offer personalized shopping experiences by integrating Gen AI tools.
“The adoption of Gen AI signifies a seismic shift in how retailers adapt, innovate, and enhance customer experiences,” says Angshuman Bhattacharya, National Leader, Consumer Product and Retail Sector, EY India. As retailers gear up for this transformative era, privacy, ethics, and readiness become crucial factors. Leaders at the board, CEO, and CIO level should navigate the AI revolution, balancing innovation with responsibility to create a future where technology both drives profits and enriches shopping experiences with integrity and transparency.
The survey highlights that 76% of respondents believe that AI will have the greatest impact on customer experience, followed by product innovation (65%), cost reduction (54%), and the entire value chain (50%). However, concerns about privacy arise due to the use of Gen AI, particularly in terms of location tracking for real-time promotions. Organizations express low-to-moderate readiness, with 80% citing unclear use cases and a skills gap. Currently, 82% of organizations prefer partnerships with external tech providers to facilitate Gen AI implementation.
As Indian retailers embrace Gen AI, they anticipate significant advancements in customer experience and cost reduction. With careful navigation of ethical and privacy considerations, Gen AI has the potential to revolutionize the retail landscape, creating a future where technology enriches and enhances the shopping experience.
FAQ Section:
1. What is Gen AI?
Gen AI refers to the use of Artificial Intelligence (AI) technologies in the retail industry to improve customer experience, drive innovation, and reduce costs. It utilizes data and predictive analytics to tailor consumer experiences and optimize operations.
2. What percentage of Indian retailers plan to adopt Gen AI in the next 12 months?
According to the EY survey, over 70% of Indian retailers have plans to adopt Gen AI within the next 12 months.
3. How is Gen AI expected to benefit the retail industry?
Gen AI is expected to benefit the retail industry by enhancing customer experience, driving innovation, and reducing costs. It can boost profitability by 20% by 2025 and help retailers offer personalized shopping experiences.
4. How much are global retail investments in AI estimated at currently?
Global retail investments in AI are currently estimated at $5 billion.
5. What is the projected estimate for global retail investments in AI by 2028?
The projected estimate for global retail investments in AI by 2028 is $31 billion.
6. What are the major areas where AI is expected to have an impact in the retail industry?
According to the survey, AI is expected to have the greatest impact on customer experience, followed by product innovation, cost reduction, and the entire value chain.
7. What are the concerns regarding the use of Gen AI?
Privacy concerns arise due to the use of Gen AI, particularly in terms of location tracking for real-time promotions. Organizations express low-to-moderate readiness with 80% citing unclear use cases and a skills gap.
8. What is the preferred approach for Gen AI implementation in organizations?
Currently, 82% of organizations prefer partnerships with external tech providers to facilitate Gen AI implementation.
9. What is the significance of privacy, ethics, and readiness in the adoption of Gen AI?
Privacy, ethics, and readiness are crucial factors to consider as retailers adopt Gen AI. Leaders at the board, CEO, and CIO level should navigate the AI revolution, balancing innovation with responsibility to ensure integrity and transparency in customer experiences.
10. How can Gen AI revolutionize the retail landscape?
By embracing Gen AI and carefully considering ethical and privacy considerations, Indian retailers anticipate significant advancements in customer experience and cost reduction. Gen AI has the potential to revolutionize the retail landscape by enriching and enhancing the shopping experience with the help of technology.
Key Terms:
– AI: Artificial Intelligence
– Gen AI: The use of AI technologies in the retail industry
– EY: Ernst & Young, a multinational professional services firm
– Predictive Analytics: The use of data and statistical algorithms to predict future outcomes
Related Links:
– EY Official Website
– EY Survey on Gen AI in Retail News Article
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