New research looks at AI/ML use across 11 different retail application areas and compares retail performance
The research indicates that data maturity and the use of Artificial Intelligence with Machine Learning across a variety of software functions is becoming a true differentiator. The research looked at existing AI/ML use in 11 categories of software (Forecasting, Order Management, Order Fulfillment, Supply Chain/WHS Management, Merchandise Allocation, Pricing/Promotions, BI/Analytics, Loss Prevention, Sales & Mktg, HR/WFM/App Dev/Customer Service, Other).
It is no longer a question of if AI/ML is making a difference. The data shows it is clearly a differentiator that will continue to deliver results and help leading retailers lap their competition.”
Compared to those who have not adopted AI/ML, these retailers are witnessing sales growth 2.3x ad profit growth 2.5x that of their competitors for the year 2023. Projections for 2024 also indicate a similar trend, with estimated sales growth of 2.4x and profit growth of 2.6x.
“It is no longer a question of if AI/ML is making a difference,” said Greg Buzek, President of IHL Group. “The data shows it is clearly a differentiator that will continue to deliver results and help leading retailers lap their competition.”
In today’s fast-paced market, innovation is not just an option; it is a necessity for staying relevant. The study underscores the strategic priority that retail leaders are placing on AI, with its integration across various domains such as pricing, forecasting, marketing, and customer relationship management. By harnessing the potential of AI, these industry trailblazers are not only streamlining operations, but also redefining the shopping experience for their customers.
The research study also sheds light on the pivotal role of other emerging technologies that are set to shape the retail landscape in 2024. From data lakes and 5G at the store level to radio-frequency identification (RFID) and computer vision, leaders are leveraging these technologies to gain valuable insights, optimize operations, and stay ahead of the competition.
Moreover, the study outlines the pivotal role of other key technologies that are set to define the retail space in 2024. It details the adoption curves of foundational systems like Point of Sale (POS), Self-Checkout, Mobile POS, and Mobile Checkout, as well as innovative solutions like Electronic Shelf Labels.
The widening gap between leaders and laggards in the retail industry is apparent. To secure victory in the race for innovation, retailers must not only invest but also innovate with intent and insight. The study provides valuable insights into the critical purchasing timeframes for these transformative technologies, enabling vendors to forecast opportunities and align their strategies accordingly.
The “Winning the Race of Innovation” study is now available, offering a blueprint for success in the evolving retail landscape. Retailers who embrace AI and other emerging technologies will not only thrive but also reshape the way we shop.
Read More: SalesTechStar Interview with Bob Moore, Co-Founder and CEO at Crossbeam
