How Retail Brands Are Using Artificial Intelligence

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Filed under - Industry Insights,

Seb Reeve of Nuance discusses how retail brands are now using artificial intelligence (AI) to thrive during these turbulent times.

As part of the 2021 AI Business Week Digital Symposium, I joined the AI in E-Commerce and Retail session to give my perspective on how market-leading brands are using AI to thrive in turbulent times.

The panel was moderated by Chuck Martin, Editor of Strategic Content for AI Business, with presentations from Eden Zoller, Chief Analyst for Digital Consumer Service at Omdia, and Errol Koolmeister, Product Area Lead Engineer for H&M’s AI Foundation.

There are too many great insights from the discussion to squeeze into one post, so I’m highlighting a couple of the big themes: the importance of brand reputation, and how to know when your AI is ready to deploy.

How Do Consumers Use AI Today?

Eden Zoller’s presentation gave us a detailed grounding in how consumers view AI—and what they expect from the brands using it.

Omdia’s research shows that 28% of consumers view e-commerce players as deliverers of reliable AI more than any other service provider.

This is level with banks, but behind device vendors and consumer tech companies, which is likely because of the public’s growing comfort with their smartphone virtual assistants and in-home smart speakers.

Online retail also has the edge over physical retail, which is lagging behind with 19%.

AI deployments are still new (and rare) for retail stores, so that figure may climb in the coming years if brands continue to invest in an in-store AI experience.

If Your Customers Think There’s a Problem, You Have a Problem

As Eden explained, it doesn’t really matter how secure, reliable, unobtrusive, or useful your AI actually is. If your customers think there’s an issue, you have an issue.

Over the past few years, unscrupulous brands, data breaches and lacklustre implementations have put a dent in the public’s willingness to engage with AI.

Errol and I had similar thoughts about how you tackle this challenge. Gaining consumer trust is essential, especially as AI uses huge amounts of customer data.

A thumbnail picture of Sebastian Reeve

Seb Reeve

Brands need to be responsible, and clearly communicate the steps they’re taking to protect customers’ data and provide useful experiences.

You can’t hide this information in the small print—Omdia’s research has shown that consumers trust brands more when they demonstrate the exact steps they take to respect their customers’ privacy.

Also, above all, AI should be built to truly add to the customer experience, not just creating friction for the sake of “tech” progress.

If you’d like to watch the full AI in E-Commerce and Retail session, click here.

Author: Guest Author

Published On: 25th Mar 2021 - Last modified: 30th Mar 2021
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