Retailers around the world are deploying artificial intelligence (AI) in a big way, but they are more keen on cutting cost rather than improving customer experience.
In its new report, French IT consultancy Capgemini says the driving forces behind the current AI implementations are cost (62%) and ROI (59%), while customer experience (10%) and known customer pain points (7%) are significantly lower priorities.
In the study, barely 1% of retailers were found deploying the technology across the entire value chain.
“….Retailers should be wary not to chase ROI figures without also considering the customer experience. Our research shows a clear imbalance of organizations prioritizing cost, data and ROI when deploying AI, with only a small minority considering the customer pain points also,” says Kees Jacobs, Vice President, Retail Sector at Capgemini.
Interestingly, AI deployments have increased by a stunning seven-fold since 2016, with many sellers struggling to implement the technology due to lack of skilled professionals. Those claiming that they have the skills needed to implement AI have now dropped from 78% in 2017 to 53% today, according to the report.
However, it is clear that retailers are very much keen on harnessing artificial intelligence, which Capgemini says can help them save as much as US$300 billion in cost.
“For global retailers, it appears reality has kicked in regarding AI, both in terms of what the technology can achieve and what they need to do to get there,” Jacobs added.
Capgemini says AI can streamline supply chain management, as retailers can make use of image detection-led algorithms for detecting in-store pilferage and optimize supply chain route plans.