How AI Will Change And Save Retailing

How AI will change and save retailing. Retail needs to save itself from another technological revolution and this one will bring more disruptive innovation than e-commerce did.

But here’s an interesting fact: We ran a poll to understand what percentage of businesses could build an AI infrastructure versus those that can’t. The third group, which 70% of them fall into, believes that they can compete without AI. I wasn’t surprised because only 30% of companies have a sophisticated Omni channel presence. And by the way, they are smart enough to know that their new ROI is “DATA.”

This chart to the right is a forecast based on consumer adoption rates of social media and smartphones. My analysis

is conservative by way of timeline and we should expect adoption to be faster. I did this chart in late 2023. Today I would say we cut all timelines into half.  Everything here is

based on consumers adopting personal AI assistants and there is no reason to say that they won’t.

Here are three things I expect to happen with AI.

1. The largest retail companies are going to or already are leading with AI, and it is only a matter of time before more of them do the same.
2. AI Personal Assistants or Agents, if you wish, are on their way. This is a race between technology companies to see which one of them develops a sophisticated AI-PA. But here is the catch: this is being developed for several reasons. The primary is that these companies want to pick up on retail selling transactions. In other words, they want to be the bridge between consumers and retailers. If consumers like this, it looks like everyone is dabbling with AI. Imagine your concierge who serves and listens to you. How do retailers break through this disruptive force?
3. To communicate with your customers, who may no longer be on social media or even streaming because their personal assistant is acting like their best friend or therapist, retailers must pay to reach them, and only if they want to talk to your AI Assistant. Yes, you are going to need one, too.

This is just a tiny snapshot of what’s coming. If this is like adopting smartphones and social media, prepare for significant consumer behavior changes.

Everyone will tell you not to worry about it. Still, having been responsible for multiple retail chains internationally, I can tell you that CEOs and their Executives are worried about it. If they aren’t, they are a part of the 70% hopeful they can compete without AI.

So, how does it save retailers? In my new book, which isn’t out yet, I write about the importance of retailers and all organizations in all industries being focused on transforming themselves into companies that lead with technology (AI) and talent. The message I am sending to all organizations is this.

“AI is about The Industrialization of Human and Artificial Intelligence working together to identify, develop, and deliver Next-Generation Strategies and Innovations. It’s about reinventing the organization. Envision transforming from an Analogue Company unable to compete because of silos, resistance to change, and outdated technology. Instead, we transform these organizations into tech companies that lead with AI and human intelligence to develop a brand story, products, and services. It is a complex path to pursue, however, it will be impossible to compete without this level of transformation.  George Minakakis – Inception Retail Group Inc. November 2023 

So, how will AI change and save retailing? It will make retailers far more intelligent as businesses and turn them into responsive organizations instead of reactive ones.

My new book will be arriving late this fall, just in time for CEOs and executives at all levels to prepare for the next five years.