Question

"List out and discuss the applications of Artificial Intelligence in the Retail and CPG sector"

Guidelines :

• The word limit is 200 words.
• to reflect on and respond to the above question and post your views on the discussion forum.
• response should have some originality.
• should refrain from posting any definitions of theories & concepts.

Answer 1

Artificial Intelligence in the Retail Sector

In the Retail Sector, online Shopping creates rich data regarding individual preferences, spending habits and preferred channels of individual consumers. Feeding this digital into an Artificial Intelligence -engine helps bring curated shopping journeys to mass audiences. Automated bots can create lifelike, seamless customer service experiences, addressing the consumer on their purchase history and known preferences.  

On the marketing side, Artificial Intelligence may deliver the extra dash of relevancy programmatic advertising has been waiting for all these years. On the consumer side, Artificial Intelligence helps create individualized display ads that website visitors want to see, while on the accounting side, “the bots handle invoicing and payment for these transactions, giving marketers more time to focus on the big picture. With Artificial Intelligence, predictive customer service and marketing could be just around the corner.

Artificial Intelligence in the CPG Sector

For Consumer-Packaged Goods (CPG) companies, Artificial Intelligence offers huge benefits across three key areas of the value chain namely retail, operations and supply chain. However, while CPG leaders are excited about the value that Artificial Intelligence can deliver, many are still struggling to find tangible Return-on-Investment (ROI) from Artificial Intelligence. Without a clear path to ROI, it’s difficult for CPG companies to validate the necessary funding for Artificial Intelligence projects and see the path to success.

While some CPG companies are still working to automate their stores, many other companies are already using Artificial Intelligence and machine learning to support a variety of key retail and marketing activities focused on consumer experience. For example, companies are using Artificial Intelligence in analytics initiatives focused on loyalty, segmentation, Next Best Offers (NBOs) and customer lifetime value.

Refining Artificial Intelligence technologies for future success

Looking ahead, CPG companies will continue to adapt and refine Artificial Intelligence technologies, extending their value to predictive and prescriptive models. I expect Artificial Intelligence to assist CPG companies with everything from choosing the best location for new retail outlets to innovating to meet the needs of tomorrow’s customers. Customers will also benefit from Artificial Intelligence supporting the retail environment, from improved product quality and availability to personalized help, choosing the best products for their families based on their specific preferences.