AI Investments result in a substantial increase
in revenue growth, say 55% of retailers surveyed by Oxford Economics.
Chatbots, Robotic Process Automation, Predictive
Analytics & Machine learning are driving the next wave of digital
transformation in retail enterprises. In this blog, we bring you snippets from a
recent report of Oxford Economics in partnership with Synchrony.
55% of retailers surveyed, which was not
limited to early adopters validated that they have seen a substantial increase
in revenue growth. A key indicator to retailers who are evaluating AI
technologies to address growth.
72% of retailers say artificial intelligence
will be a competitive necessity for their company in the next five years. Nearly
half of the respondents said that the application of AI will have a
transformative impact in their business.
The top three key factors that impacted AI
investments were voted as a) Customer Demographics that include merchandise
preference, income etc, b) Brand Needs and c) the brand’s mixed presence both online
vs physical locations.
The primary benefits, these retailers accrue of
artificial intelligence to customers are mainly around,
- More Relevant & Customized
Marketing.
- An Improved In-Store Experience
- Better Merchandise Selection.
64% of retailers today use AI to capture
customer data while 40% use AI to predict customer behavior.
Lack of Budget, immature technology & difficulty
in prioritizing investments are key challenges faced by retailers adopting AI.
66% of retailers want their AI investments to deliver increased profitability.
You can read the full report here.
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