AI as Crucial for Business Success, Not Just for Retailer business essential

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AI as Crucial for Business Success
AI as Crucial for Business Success

Generative AI technology has progressed beyond mere curiosity for retailers, evolving into a cornerstone for software business applications that enhance enterprise operations. This insight comes from a report jointly released by Coresight Research and Digital Wave Technology on Monday.

The 19-page document delineates the diverse applications of generative AI technology in the retail sector. Notably, it is utilized to augment product design, automate product creation, refine product definitions, expedite the generation of advertising concepts, and drive product development.

The report underscores the substantial productivity gains that retailers can attain through the adoption of AI. For instance, a North American retailer with a multibillion-dollar revenue stream and over 2,000 stores experienced a remarkable efficiency surge of over 90% in the digital onboarding process for products by leveraging generative AI.

Similarly, MIT45, a health supplement manufacturer based in Salt Lake City, witnessed significant improvements. CEO Ryan Niddel reported an 80% to 85% boost in work productivity, stating, “We’re utilizing AI to streamline various processes, such as drafting contracts and documenting standard operating procedures.”

Niddel provided a concrete example of the transformative impact of AI in their operations. He explained, “Our general counsel, previously spending hours drafting contracts and earning a substantial six-figure salary, can now generate a draft in just six minutes and rapidly enhance it using AI.”

In essence, the incorporation of AI into operations is becoming increasingly pervasive, as illustrated by MIT45’s experience and the broader trends outlined in the report.

Elevating Creativity with Generative AI

In the realm of advertising, Generative AI emerges as a powerful tool to streamline the brainstorming process, according to a recent report. This technology, capable of producing text, voice, video, and image content, is not seen as a threat by creative professionals. Lori Schafer, CEO of Digital Wave Technology, a provider of enterprise AI applications in Ponte Vedra Beach, Fla., emphasized that AI serves as a valuable co-pilot, allowing copywriters to maintain control.

According to Schafer, copywriters instruct the AI on what to explore, and the AI takes care of the laborious tasks, freeing up copywriters to focus on the strategic aspects of their work. This shift from tedious tasks to strategic thinking enhances the job satisfaction of copywriters, making their work more meaningful.

Mike Allmond, vice president and co-founder of Lover’s Lane, a national retail chain specializing in intimate and adult-themed merchandise, headquartered in Plymouth, Mich., highlighted how AI facilitates the creative process. AI-generated copy and images can be proofread and edited by marketing team members, allowing them to ideate and formulate new campaigns and strategies while the AI handles the groundwork.

Generative AI, when properly trained, can also play a crucial role in refining content. It can identify and rectify translation errors, flag potentially inappropriate language, and suggest wording that has proven to be effective in specific local regions. Rob Enderle, president and principal analyst with the Enderle Group, an advisory services firm in Bend, Ore., sees this as one of the early areas where AI demonstrates significant benefits.

In essence, Generative AI acts as a supportive partner for creative professionals, enhancing efficiency and enabling a more focused and strategic approach to advertising endeavors.

Targeting Preferences in AI

Brian Prince, the founder and CEO of Top AI Tools in Boca Raton, Fla., shared insights on how AI significantly enhances daily operations in marketing and creativity. He likened AI to an extra set of hands and, more crucially, an additional brain for creative and marketing endeavors. According to Prince, AI efficiently handles repetitive tasks like data analysis and customer segmentation. This automation allows his team to redirect their efforts towards more creative aspects of their work, as reported to the E-Commerce Times.

Moreover, AI-driven tools offer valuable insights into customer preferences, a boon for retailers aiming to tailor personalized and effective marketing campaigns to boost profits. To pinpoint these preferences, employing AI to analyze the content people are watching proves beneficial. Tricia Allen, the Vice President of Business Development at Hotspex Media, a digital media agency in Toronto, explained that this approach enables brands to align their messages with content that elicits similar emotions to their digital advertisements.

The use of AI to analyze content has demonstrated tangible benefits. Tricia Allen highlighted that emotional alignment increases attention by 20% and enhances viewer engagement, leading to a 12% increase in video ads watched to completion. This strategic utilization of AI not only streamlines operations but also enhances the overall effectiveness of marketing efforts.

Supporting Ongoing Enhancement

The report highlights the valuable role that generative AI plays in the continual improvement of products. To complete the journey of launching a product and contribute to the ongoing cycle of product development, it emphasizes the importance of analyzing feedback. Generative AI proves beneficial in extracting insights from reviews of existing products, offering valuable information for product enhancements.

While machine learning-based solutions have traditionally focused on mining sentiment from product reviews, generative AI stands out by not only analyzing but also summarizing and composing text, significantly expanding its capabilities. Product reviews serve as a rich source of data for various purposes, including product development, description, and attribution enhancement.

The report emphasizes the significance of identifying product issues early in the development stage, as doing so can mitigate costly returns for retailers or brands. Continuous improvement is deemed essential across all industries, particularly in retail, where AI emerges as a crucial player. By consistently analyzing customer feedback and market trends, AI can pinpoint areas for product enhancement.

The report further notes the role of AI, especially in A/B testing, providing retailers with the opportunity to experiment with different features and swiftly determine optimal strategies. This approach leads to the development of products that align better with consumer needs, ultimately contributing to a more responsive and customer-centric retail environment.

Collaborate with an AI Specialist

To effectively incorporate AI technology, the report suggests that brands and retailers align themselves with an organization well-versed in their business needs. It is crucial to partner with a company equipped with a robust AI platform, encompassing security measures, policies, and procedures. This ensures the confidentiality of sensitive information (“brand-confidential”) and upholds ethical AI principles.

According to Schafer, it’s imperative to collaborate with experts proficient in both AI development and crafting business solutions. Relying on mass-market AI models may lead to issues like hallucinations, where the AI generates incorrect responses to queries it hasn’t been appropriately trained for.

Kory Daniels, Chief Information Security Officer (CISO) at Trustwave, a global cybersecurity and managed security services provider, emphasizes the need for thorough security evaluation as business intelligence and customer analytics platforms increasingly integrate generative AI. Despite the potential advantages, Daniels highlights that the security of these systems remains unproven. Therefore, he advocates for a risk-benefit analysis, urging businesses to carefully assess implications, with the CISO playing a pivotal role in guiding these decisions.

In conclusion, retail businesses are advised to assess the risks and benefits before deploying generative AI, taking a cautious approach to ensure a comprehensive understanding of the technology’s potential impact.

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