How Generative AI is Revolutionizing Retail
Retailers are constantly seeking innovative ways to boost sales and enhance the customer experience. One such solution on the horizon is generative artificial intelligence (genAI) – a technology that has the potential to bridge the gap between brick-and-mortar stores and online shopping.
The Power of Natural Language
Imagine being able to shop using natural language instead of navigating through complicated search filters and categories. That’s the future that executives from WalMart, Microsoft, and electronic shelf labeling company Hanshow envision.
During a panel discussion at Fortune’s Brainstorm AI conference, Microsoft’s Keith Mercier suggested that genAI could enable highly personalized shopping experiences. Instead of vague search terms, customers could use detailed queries like “moderately priced coat for Milwaukee winters in black” or “gift for girl learning to read who loves unicorns under $25.”
By utilizing genAI, retailers can provide the same level of personalized service found in physical stores to their online customers. Ecommerce has predominantly relied on data but lacked personalized service. With genAI, retailers can merge rich data insights with personalized assistance to create a more engaging online shopping experience.
Transforming Walmart into an ‘Assistant’
At Walmart, generative AI is seen as an “assistant” for customers. Sravana Karnati, the company’s Chief Technology Officer, emphasized that genAI can facilitate expression through natural language queries. This effortless search experience can lead to higher customer satisfaction, loyalty, and ultimately, increased sales.
However, it is understandable that older shoppers and regulators may have reservations about embracing this new technology. Older individuals are often resistant to change, while regulators may express concerns over privacy and data security.
The Next Generation’s Perspective
While some may be skeptical, Klaus Smets, Vice President of Hanshow, believes that younger generations will be more receptive to genAI as they mature and gain purchasing power. The next generation views AI as a useful tool that provides helpful information rather than a threat to human interaction.
Implementing generative artificial intelligence in retail will require a thoughtful approach to address concerns and gain the trust of shoppers and regulators. However, the potential benefits of genAI are clear – personalized shopping, enhanced customer experiences, and increased sales.
Source: Why retailers are betting that natural language search and generative AI is the future of shopping
