Close to half of brands and retailers in the United Kingdom believe artificial intelligence (AI) will give rise to significant opportunities to optimise supply chains, reduce costs and create more meaningful relationship with customers, according to joint research by international law firm CMS and independent UK economics research consultancy Retail Economics.
Target areas of investment included sales and marketing (66 per cent of respondents); warehouse, distribution and logistics (53 per cent); and buying and merchandise (47 per cent), a press release from Retail Economics said citing the study.
The study, titled ‘Disruption 2.0…here we go again’, explores AI technologies in the customer journey, the challenges of implementing AI, and the consumer attitudes that will ultimately shape its future. It covered 2,047 UK households and 33 large multiple retailers and consumer brands companies.
Forty five per cent of customers believe digital advertisements hardly ever or never displayed appropriate content to them. However, nearly 60 per cent of businesses would trust fully automated AI-driven marketing campaigns.
Two in five consumers think that drone deliveries will stay in the realm of science fiction and never become a reality for online deliveries.
Nearly 60 per cent of organisations feel they lack the specialised skills required to roll out new AI technology. Three-quarters of organisations believe they will plug this gap through external suppliers, however nearly 40 per cent think they will develop in-house AI capabilities.
Four-fifths of the organisations believe AI has the potential to increase customer loyalty and 66 per cent of those believe they will require roles managing data ethics.
“Retailers are acutely aware of potential AI-derived cost savings, increased productivity and efficiencies. This is evidenced by 85 per cent of retailers who think that AI-powered data analytics will enable more sophisticated targeting of customers,” said Richard Lim, CEO, Retail Economics. (DS)
Fibre2Fashion News Desk – India