The report reveals that AI-powered applications like fashion avatars, smart shopping carts and virtual influencers are enhancing customer engagement
With over 55 per cent of retailers registering a return on investment (ROI) of over 10 per cent from their artificial intelligence (AI) investments, a report has revealed that around 67 per cent of such retailers believe that AI has driven enhanced efficiency through cost reductions.
In its ‘Intelligent Retail: A Blueprint for Creating Value through AI-driven Transformation,’ report, KPMG stated that around 21 per cent of retailers have even seen returns exceeding 30 per cent. AI has driven productivity gains (33 per cent) and innovation in new products and services (47 per cent).
As far as AI spending and budget allocation is concerned, the report revealed that 56 per cent of retailers have been using AI for over three years, with 67 per cent believing that AI spending in the next year will significantly increase the global budget spent on AI. AI-powered applications like fashion avatars, smart shopping carts and virtual influencers are enhancing customer engagement. 47 per cent of retailers state that AI has led to new product and service developments.
“By leveraging AI, retailers can deliver hyper-personalised experiences, optimise their operations, and drive significant value across their entire business,” stated Puneet Mansukhani, Co-Lead Consumer and Retail and Head of Global Retail Digital Technology and Transformation at KPMG in India.
However, the report also highlighted that 74 per cent of retailers identify data management as a primary challenge to scaling AI in retail. Only 28 per cent have achieved system-level data integration and just seven per cent have fully automated data integration. As far as the strategic AI roadmap is concerned, the report added that 24 per cent of retailers have a clear, ambitious vision for AI as a central driver of organisational transformation.
