Retail’s Mistakes With AI

Things were easier in the early 2000s. Retailers had a predictable, competitive turf, and the rules were the same for all, as was getting the consumers’ attention.

When e-commerce began, it looked like an electronic board with lists; it didn’t seem much of a threat to anyone. We all know the story of Amazon, its humble beginnings, and its climb to power and influence of the retailing and consumers. A few intelligent retailers like Walmart saw the future and invested heavily in it. While many of their contemporaries were failing, they went the other way. But that’s history.

If you can raise a brand’s intelligence to have more predictive foresight and not just challenge the status quo but build the future, you can achieve brand resilience. Business longevity is about resilience. And if an organization can engage and align its talent, it becomes far easier. As AI emerges in many organizations, the question is, will retailers repeat their e-commerce errors? Why am I confident that history is repeating itself? Because polls I am conducting have data that validates businesses, about 70% think they can compete without AI. This is Retail’s Mistake with AI in the making.

However, I hear at my presentations and others that not everyone is convinced that AI is the future. Here’s what’s wrong with that thinking. Many large, sophisticated retailers are ahead of the curve and hope this will happen. Denying that AI is important or that there is a need to invest in it is a big mistake. The same thing happened with e-commerce; everyone’s denial gave Amazon the advantage. This will be retail’s mistake with AI.

Retail’s mistakes this time aren’t just about dismissing the need to be visible online or even understanding that an Omnichannel’s ROI was data—the fuel that feeds AI. It was waiting too long before they acted, and countless retailers failed.  This next wave is about understanding the market and your customers at a granular level, where insights can create winning strategies and innovations. This will be Retail’s mistake with AI.

In my new book “Predictive Leadership – How Humans and AI Will Transform Organizations, Innovation, and Competition.”

One Chapter is called R.A.I.S.E. Brand Intelligence and Brand Resilience. I outline what business leaders should do to protect their brands in this emerging period.

R- Responsive Intelligence
A- Authentic Connection
I- Innovative Collaboration
S – Sustainable Growth
E- Emotional Intelligence
The book is due in the late fall of 2024.

The future is about leading an intelligent brand with the right talent that can deliver the future.