Global Artificial Intelligence in Retail—Use Cases and Transformational Impact, 2019

Global Artificial Intelligence in Retail—Use Cases and Transformational Impact, 2019

Data Drives Everything. Customer Experience is Everything

RELEASE DATE
10-Oct-2019
REGION
Global
Research Code: MF04-01-00-00-00
SKU: IT03935-GL-MR_23590

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$2,250.00 save 25 %

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Description

This research service is part of Frost & Sullivan's Integrated Commerce Research Programme. It provides an original perspective on how artificial intelligence (AI) is making its way into the retail sector. Retail has entered a new era where eCommerce and technology bellwethers like Alibaba, Amazon, Apple, Baidu, Facebook, Google, Microsoft, and Tencent have raised consumers' expectations. AI is enabling automated decision-making with accuracy and speed, based on data analytics, coupled with self-learning abilities. It has passed a critical usefulness threshold but is also overhyped. AI depends on other technologies such as the Internet of Things (IoT) to provide it with quality data to be able to address specific use cases of which there is a constantly growing number across industries and value chains, from customer-facing through core operational processes to the back-office. The need for this linkage highlights the importance of a carefully planned digital transformation strategy wherein deployment takes into account dependencies between technologies. At the same time, growing fondness of retailers to experiment with, and take into production, emerging technologies for personalisation, human-machine interaction, automation and friction reduction, support greater efficiency and the delivery of better user experiences. As online and offline converge to become simply parts of the shopping experience, analytics identify and propose products to the needs and tastes of individual shoppers or shopper-captured images. Personalisation of offers and prices aspire to become real time in physical environments as well. Chatbots and social robots are becoming increasingly common to provide advice and support, while AI will increasingly pervade every business process and function across the retail value chain. The frequent last-touch experience of the shopper with AI will be frictionless checkout (unless there is subsequent need to turn back to customer service chatbots). Data remains ‘the new oil’ that is the indispensable foundation for AI to work while the tension with privacy increases. Merchants and other ecosystem players’ fight for the customer interface is not just a fight for sales and margins. It is just as much as fight for the ability to collect data. Data will determine the medium-term ability of a merchant to deliver a positive customer experience based on the merchant’s AI being able to make accurate predictions about offering the right product or service, at the right price, the right time and in the right way to the right customers. This research service takes retailers and other readers on an exploratory journey through AI-related changes in the retail environment to provide orientation in this fast-evolving environment.

Author: Martin Hoff ter Heide

Table of Contents

Key Findings

Research Aim and Scope

Research Methodology

Key Questions this Study will Answer

Overview of AI

Which AI Sub-Technologies are Gearing up?

The Science and Engineering Behind AI

AI Value Chain

Ecosystem Development—From Data to Self-learning Systems, the Next Frontier

Pervasive AI Applications

AI Applications that Span Industries and Functions

Spectrum of AI Systems

AI Innovation Hot Spots

AI—Key Challenges

AI—Key Challenges (continued)

Business Objectives in the Retail Industry

Top IT Drivers of Digital Retail

Emerging Technology Deployment in the Retail Sector

Stage of Emerging Technology Deployment in the Retail Sector

Top Reasons Why Retailers Invest in AI

Top Concerns for Retailers with Regards to AI

Frost & Sullivan AI-Driven Integrated Commerce Framework

Frost & Sullivan AI-Driven Integrated Commerce Framework (continued)

Discovery, Social and Visual Commerce

Pinterest—A Place for Inspiration and Discovery

Solution Providers and Innovators Turning Retail Upside

Perfect Personalisation and Experiential Commerce

Dynamic Yield—Making Every Customer a VIP

Solution Providers and Innovators Making Every Customers a Segment of One (VIP)

Non-human Agents

Pepper Robot—Robots Blending in With People

Solution Providers and Innovators Giving Customers Non-human Interlocutors

Next-Gen Retail Planning, Logistics and Operations

Ocado—Digital Grocer Transforming Warehousing

Solution Providers and Innovators Upgrading the Retail ‘Engine Room’ Next-Gen Retail Planning and Operations

Ambient and Frictionless Commerce

Amazon’s Checkout-free Go Store—Starting Signal for the Checkout-free Shopping Race

Solution Providers and Innovators Helping Retailers Keep up With Amazon

Growth Opportunity 1—Automation

Growth Opportunity 2—Prediction and Prescription

Growth Opportunity 3—Personalisation

Strategic Imperatives for Success and Growth

5 Companies to Watch

3 Big Predictions

Legal Disclaimer

List of Exhibits

The Frost & Sullivan Story

Value Proposition—Future of Your Company & Career

Global Perspective

Industry Convergence

360º Research Perspective

Implementation Excellence

Our Blue Ocean Strategy

Related Research
This research service is part of Frost & Sullivan's Integrated Commerce Research Programme. It provides an original perspective on how artificial intelligence (AI) is making its way into the retail sector. Retail has entered a new era where eCommerce and technology bellwethers like Alibaba, Amazon, Apple, Baidu, Facebook, Google, Microsoft, and Tencent have raised consumers' expectations. AI is enabling automated decision-making with accuracy and speed, based on data analytics, coupled with self-learning abilities. It has passed a critical usefulness threshold but is also overhyped. AI depends on other technologies such as the Internet of Things (IoT) to provide it with quality data to be able to address specific use cases of which there is a constantly growing number across industries and value chains, from customer-facing through core operational processes to the back-office. The need for this linkage highlights the importance of a carefully planned digital transformation strategy wherein deployment takes into account dependencies between technologies. At the same time, growing fondness of retailers to experiment with, and take into production, emerging technologies for personalisation, human-machine interaction, automation and friction reduction, support greater efficiency and the delivery of better user experiences. As online and offline converge to become simply parts of the shopping experience, analytics identify and propose products to the needs and tastes of individual shoppers or shopper-captured images. Personalisation of offers and prices aspire to become real time in physical environments as well. Chatbots and social robots are becoming increasingly common to provide advice and support, while AI will increasingly pervade every business process and function across the retail value chain. The frequent last-touch experience of the shopper with AI will be frictionless checkout (unless there is subsequent need to turn back to customer service chatbots). Data remains ‘the new oil’ that is the indispensable foundation for AI to work while the tension with privacy increases. Merchants and other ecosystem players’ fight for the customer interface is not just a fight for sales and margins. It is just as much as fight for the ability to collect data. Data will determine the medium-term ability of a merchant to deliver a positive customer experience based on the merchant’s AI being able to make accurate predictions about offering the right product or service, at the right price, the right time and in the right way to the right customers. This research service takes retailers and other readers on an exploratory journey through AI-related changes in the retail environment to provide orientation in this fast-evolving environment. Author: Martin Hoff ter Heide
More Information
No Index No
Podcast No
Author Martin Hoff ter Heide
Industries Information Technology
WIP Number MF04-01-00-00-00
Is Prebook No
GPS Codes 9705-C1,9AA5-C1,9B07-C1