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The retail sector is undergoing a significant transformation, driven by the rapid adoption of artificial intelligence (AI). A recent report from Salesforce and the Retail AI Council reveals that global retailers are swiftly adopting generative AI to personalize and enhance both in-store and online shopping experiences.
The Impact of Generative AI on Retail
Generative AI is projected to have a $9.2 trillion impact on the retail sector by 2029. Retailers are recognizing the benefits of implementing this technology to streamline operations, increase productivity, and deliver more personalized experiences for shoppers and associates.
However, trust remains a significant issue. Only 13% of customers completely trust companies to use AI ethically, and 63% are concerned about bias in AI outputs.
Data plays a crucial role in the effective implementation of AI. However, nearly half of the 1,300 retailers surveyed are struggling to make their data accessible, and just 42% are connecting their various data silos. This lack of data integration can lead to ineffective or inaccurate AI outputs.
Despite understanding the importance of data, many retailers are still figuring out how to unify all of their data and build a single view of their customers to unlock more effective generative AI outputs.
Trust and Ethics in AI Adoption
Retailers are aware of the security and trust risks surrounding generative AI and are taking steps to address them. Half of the retailers surveyed say they have the ability to fully comply with data security standards and data privacy regulations.
Bias, when AI algorithms produce prejudiced results or responses, is cited as the top risk in using generative AI. In addition to bias, retailers see hallucinations (38%) and toxicity (35%) as significant risks.
The Future of Retail with AI
In today’s retail landscape, AI isn’t just changing the game; it’s reshaping the entire playbook. It’s transforming shopping from a transactional chore into a personalized and evolving adventure.
As the retail sector in Kenya continues to evolve, the adoption of AI technologies such as generative AI will play a crucial role in shaping the future of retail. Retailers who can effectively leverage these technologies while addressing the challenges of data management and ethical considerations will be well-positioned to succeed in this new era of retail.
