AI – a retail growth opportunity hiding in plain sight
June 1, 2018
Consumers are increasingly comfortable with AI technologies. Forty-four percent of them currently use some type of virtual assistant.i Even those who don’t have access to a Siri, Alexa or Cortana enjoy AI experiences everyday—often without realizing it. Leading websites and social platforms routinely use AI, along with machine learning and analytics, to provide a steady stream of personalized experiences.
Consumers are ready for traditional retailers to deliver the same level of AI-based personalization they enjoy in other aspects of their lives. Our research revealed that 42 percent of consumers feel it is critical for companies to set new standards for service and engagement. Yet, out of 11 industry groups, consumers rank retailers dead last in their ability to continually improve customer experiences.ii
For retailers, waiting to jump on the AI bandwagon is not a winning option. To survive even the next five years, they must pursue AI’s potential today.
Fewer than 20% of retailers have deployed artificial intelligence.iii What’s holding them back? The belief that they lack the data, skills, tools, culture and leadership required.
AI presents a golden opportunity to deliver better, more relevant, more personalized—and more profitable—experiences. But many traditional retailers struggle with where to begin. We advocate a three-phase approach:
Given the perceived complexity of AI solutions and the fast-changing nature of the AI landscape, retailers’ hesitancy may be understandable. But that hesitancy will prove costly over the long run. Unless they jump on board, retailers will miss countless opportunities to develop meaningful customer relationships, turbo-charge their operations, and grow their businesses. In fact, a strong AI capability and a data-driven decision-making culture will be table stakes for retailers in only a few short years. Retailers that don’t prepare for this reality today will lose to those that do.
i Accenture Strategy, Global Consumer Pulse Research, 2017.
iii Accenture Strategy Retail Analytics Research, 2017