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WHY AI MAY BE RETAIL’S ULTIMATE SAVIOUR Artificial intelligence has the capacity to transform the physical retail landscape and create powerful, frictionless customer experiences that are unmatched by online counterparts. IBy Accenture Australia & New Zealand Retail Lead Michelle Grujin and Applied Intelligence Lead Amit Bansal. n recent years, traditional conjunction with analytics-enabled AI to product information for the items they bricks and mortar retailers have overhaul physical retail. brought in to try on. struggled to compete with the convenience of the online Complement, don’t compete Retail’s ultimate saviour channel. Homeware, appliance and Physical retailers have grown AI is more than a data-gathering tool. apparel retailer Harris Scarfe is the latest casualty of the digital revolution, as online shopping takes its toll. Yet rather than evolving the in-store customer experience, brands have responded by minimising their physical presence, leaving them with depleting resources for future growth and a disengaged customer base. By adopting next-generation technologies such as AI to reimagine the customer experience, retailers can enhance their value propositions on both the front and back end, to more effectively compete with the online market. Realising success with AI Research from Accenture’s ‘AI momentum, maturity and models for success’ report has shown AI is encountering real success on a number of fronts, including more accurate modelling, fact-based decision making and, importantly, customer acquisition – a fleeting metric among today’s physical retailers. Yet only nine per cent of retailers surveyed have fully deployed AI technology. What’s more, where AI is being applied, many brands are failing to make effective use of it. Retailers such as Amazon have shown us it’s possible to translate online success into the physical space, using AI technology to create a truly seamless experience with its flagship Amazon Go store. To ensure implementation is successful, AI should be applied alongside strong analytics capability to unlock valuable insights. More than ever, retailers require clear and actionable data to continually improve performance and streamline experiences to gain a competitive advantage. Accenture believes true breakthroughs will occur once ground-breaking technologies such as automation and the internet of things are used in cautious of mixing their online and in-store experiences, but for AI to be worthwhile, they must use online retail to augment and compliment their traditional offerings. Integrating customer experiences to remove information gaps is one way AI can be used, such as enabling accurate in-store GPS tracking to give customers specific guidance to the exact location of product on store shelves. Early pioneers such as Nespresso and Apple’s Genius Bar understood the power of experiential stores to drive foot traffic and augment online sales. With the introduction of AI, customers could see this experience become hyper tailored based on browsing patterns, so the online store seamlessly follows customers into the physical space. Efficiencies from back end to front Of course, online shopping can’t yet replace the convenience of grabbing an item for immediate gratification, especially in the FMCG and food and beverage sectors. However, with same-day and in some cases two-hour shipping becoming a reality, retailers must keep pace by elevating their experience to make the journey worthwhile. When implemented for store development, AI can efficiently track customer movements so that store managers can optimise available space, determine where a pop-up might be appropriate and discover deeper insights such as what products and areas of the store consumers gravitate towards, to drive more effective productivity. AI can also eliminate the checkout, creating a cashier-less experience. Brands such as JD.com have already launched unmanned stores in China. International clothing retailer Zara has introduced ‘smart’ dressing rooms that provide customers with relevant The technology pinpoints avenues for improvement and broader change that brings benefits to both brands and the customers they serve. AI predictive modelling can help retailers waste less and anticipate future progress, faster and more accurately than humans ever could. With retailers around the country being forced to close their doors, it’s more important than ever to find innovative ways to delight customers so they keep coming back for more. AI offers the solution and the time to act is now. TECHNOLOGY About Michelle Grujin Michelle has more than 20 years of hands-on experience in the retail industry. Based in Melbourne, she has worked across major CGS, pharma and retail sectors and has senior management experience with brands including Billabong International, Country Road Group, Pacific Brands and Myer, both domestically and globally in the UK, Europe, North America and Asia Pacific. Michelle has a passion for helping retailers understand the future of their industry. About Amit Bansal With more than 25 years of experience in management consulting and information technology industry with core focus on AI and big data analytics, Amit has led many programs for clients to deliver value accretive programs using new and emerging technologies across industries such as banking, telecommunications and resources. Amit is an AI evangelist and leads a number of global AI training sessions for Accenture as lead faculty for staff from consultants to managing directors. APR, 2020 RETAIL WORLD 59