AI won’t be a rip-and-replace solution

The need to be quick and adaptable has never been more important.

As Michael Relich, a retail expert, puts it,

“AI won't be a rip-and-replace solution; instead, it will be injected into current processes to improve efficiency and generate incremental sales.”

Artificial Intelligence (AI), especially generative AI—or Gen AI—is a useful tool for retailers. It helps them deal with the challenges of today’s complicated market. AI is not merely a tool—it's the catalyst for a new era of retail, where data-driven insights and personalized customer experiences reign supreme. The retail industry finds itself at a crossroads, where the rapid pace of digital transformation is not just an option but an absolute necessity.

Navigating the post-pandemic landscape

In this highly competitive and constantly changing environment, the massive amount of data spread across different systems can be overwhelming. Retailers have been struggling to turn this disparate data into useful insights. The challenges brought on by the pandemic have made it even more important for retailers to integrate their data and use analytics to understand every part of their business.

The industry is facing tough competition and a market that's always changing, so businesses need to use advanced technology to improve their business operations and data governance, make customers happier, and increase profits.

Omnichannel Retail and the Need for Agility

Today's customers expect a seamless shopping experience across all channels—online, in-store, and mobile. Retailers need to adapt swiftly to market changes, supply chain disruptions, and economic uncertainties. This requires agility and the ability to make decisions quickly, often at the "edge" where customer interactions happen. AI can help retailers achieve this by providing real-time insights and empowering frontline workers with the information they need to make the best decisions.

As Keryn McKenzie, Chapter Area Lead, Data, Insights & Services, The Warehouse Group, stated:

“Retail is fast paced—people can’t wait for information. MicroStrategy helps us apply data effectively everywhere across our business.”

This need for real-time data access and decision-making at every level is where AI steps in to bridge the gap.

The Data Dilemma and the AI Solution

Retailers have a lot of data from different places like sales, customer interactions, supply chain operations, and marketing campaigns. But these data sources are often kept in separate systems, making it hard to get a complete picture of the business. This leads to a poor understanding of what customers want, inefficiencies in operations, and missed opportunities.

AI can process and analyze huge amounts of data quite quickly, offering a solution to this problem. By breaking down data silos and finding hidden patterns, AI helps retailers get a full view of their business. This allows them to make smart decisions that improve efficiency, create better customer experiences, and ultimately increase profits.

Retailers need to integrate new tech into older systems

Retailers need technology solutions that are flexible and can grow with their business. However, many are dealing with old IT systems that slow down innovation, data processes, and efficiency. It's a big challenge to integrate new technologies and develop a data fabric with these older systems to meet current business goals.

Overcoming Obstacles and Embracing the Future

The retail landscape after the pandemic is full of challenges, including:

• Changing customer behaviors

• Dealing with supply chain problems

• Securing data security and privacy

AI can help retailers deal with these challenges by giving them the data management tool they need to improve data access—and adapt, innovate, and succeed in this new era.

Analytics: Fueling Retail Success with AI

Analytics and business intelligence are no longer optional—they are crucial for retailers to understand trends, customer preferences, and how well their operations are performing. AI-powered data analytics takes these capabilities to the next level, providing advanced tools for data analysis, data virtualization, and predictive modeling.

Want to learn more about how AI is changing the retail industry? Download our free Market Brief, “Next-Gen Retail: Harnessing AI for Advanced Analytics,” to discover the strategies and solutions that are simplifying data and shaping the future of retail.