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ChatGPT Accelerates AI Discussions for Grocers; 59% Plan to Test an AI Solution in 2023


Grocery Doppio’s survey of grocery industry executives, shoppers, and shopping data reveals state of AI in grocery, further digital basket size increase, and decline of third-party share of sales.

Incisiva next-generation industry insights firm that helps retailers and brands navigate digital disruption, and Wynshop, the leading provider of digital commerce and fulfillment solutions for local store-based retailers, revealed the findings from their State of Digital Grocery Performance Scorecard for February 2023, reflecting the latest analysis of shopper orders, plus interviews of grocery shoppers and executives about their 2023 outlook on AI in grocery.

Key findings from February’s survey included:

  • 67% of grocers say they have discussed ChatGPT at senior level meetings.
  • 82% of grocers consider AI a necessity to remain competitive in the future.
  • 59% of grocers will test an AI solution in 2023, while 13% will spend non-budgeted funds to do so.
  • Grocers believe that AI will have the greatest impact on inventory forecasting, supply chain management, and pricing/promotions, while ChatGPT/large language models will affect customer service, product discovery, and store associate tools.

These and other data insights are now available for download on Grocery Doppio, a free, independent source of grocery insights and data designed to help grocers jumpstart, accelerate, and sustain digital growth.

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Grocery Doppio’s “State of Digital Grocery Performance Scorecard” for February 2023

The monthly State of Digital Grocery Performance Scorecards are one of many resources available on the Grocery Doppio website. The reports are built around data analysis of 1.7 million shopper orders and survey results from more than 27,000 shoppers and 2,600 U.S. grocery executives.

More key findings from the February 2023 Performance Scorecard include:

  • Digital basket size grew, even as digital’s share of market slipped

—Compared to February 2022, digital basket size grew 47.2%, representing an average of 5 items more.
—Digital sales saw 2.1% growth from $9.6 to $9.8 billion between February 2022 and February 2023, but digital’s share of the total grocery market slipped from November 2022’s high of 17.1% to just 13.8% in February.

  • Third-party providers continue to lose market share

—Grocery sales through third parties fell to $1.8B in February 2023, down from $2.7 billion in February 2022 and $1.9B in January 2023.
—The balance of digital grocery sales were taken by grocers’ apps (5.9%), and grocers’ websites (75.8%).

  • Share of grocery pickup sales continues to rise

—Curbside/pickup sales grew by 8.3% from February 2022 to February 2023, rising from $4.8 billion to 5.2 billion, YOY.

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“ChatGPT has taken the world by storm, and grocers are no exception,” said Gaurav Pant, Chief Insights Officer of both Incisiv and Grocery Doppio. “Grocers acknowledge they need advanced analytics and AI and are willing to experiment and invest in building those capabilities. Those that focus on high-impact use cases like inventory optimization or can figure out a better search and recommendation experience using LLMs have a chance to leapfrog their peers.”

“Grocers are no longer technology laggards,” said Charlie Kaplan, Chief Revenue Officer of Wynshop. “AI is making an impact on grocers’ digital operations in inventory planning, online search, product recommendations, substitutions, pricing, and promotions, every day.”

Each month, Grocery Doppio brings together rich, research-driven grocery content, fact-based observations, inspiring perspectives, and deep performance benchmarks that identify improvement opportunities for grocery retailers. The site is designed specifically to help grocery and food executives optimize their digital and in-store channels, and accelerate growth profitably.

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