As retailers strive to understand the value AI technologies can provide, leaders face the challenge of garnering support from various teams, especially in tech-centric sectors. Retail Hive members are actively exploring AI solutions to tackle pressing issues related to costs and inventory management, but are running up against their supply chain team, who view AI adoption with scepticism compared to their counterparts in CX and marketing.
Events and training can help to bridge this gap, with sessions like town halls to foster discussions around AI projects and clarify the potential benefits yielding results. Many retailers have found this approach effective in creating a more inclusive atmosphere where all stakeholders can voice concerns and aspirations regarding AI.
While AI adoptions isn’t uniform, experimentation with AI technologies is definitely gaining traction. Retailers are piloting platforms like ChatGPT and Microsoft Copilot to enhance productivity and explore innovative applications of generative AI. While there’s enthusiasm for using AI in areas like trend forecasting and supply chain planning, many tools still fall short of meeting the specific needs of many teams, with retailers holding out for future iterations to evolve to better serve these requirements.
For many members, a collaborative human-AI interface is emerging as the ideal approach. By viewing AI as a tool to complement human efforts rather than a replacement, organisations can foster an environment where employees work alongside AI to cut down on mundane tasks and bolster their capacity and creativity.
Despite the excitement around AI, it’s not all smooth sailing. Top of the to do list, retailers must ensure that the data they use for AI training is accurate and reliable—the old adage of ‘garbage in, garbage out’ is truer than ever when it comes to AI. Concerns have also arisen over the pitfalls of over-relying on AI without human oversight. While AI excels at tasks like contract reviews and identifying patterns within large datasets, it still requires critical input from human teams to navigate complex decision-making processes effectively and should never be let loose on customers without serious failsafes in place.
There’s also a growing awareness of the ethical implications and consumer appetite surrounding AI applications. Some retailers are finding their customers are resistant to buying based on AI-created or adapted images, creating a backlash which highlights the importance of understanding community sentiment and ethical considerations before launching AI-driven projects—particularly in the short term when AI is not the norm.
The burgeoning landscape of AI vendors is also tricky to navigate. Retailers feel that some companies have retrofitted AI capabilities into existing products as they attempt to ride the hype wave, raising questions about the depth of their understanding and the real impact on outcomes. Tech leaders need to be cautious and look for vendors that provide transparency about their AI capabilities and have a proven track record.
Finally, retailers need to accept that the workforce will inevitably shift as AI technologies become more prevalent. As teams adapt, they will require training to understand AI tools and leverage them effectively. Investing in skills development will be crucial to ensure that employees feel empowered rather than threatened by AI innovations.