As per a study published by French technology giant Capgemini, artificial intelligence (AI) could serve as an immense cost saving tool for retail companies. Monetarily, artificial intelligence offers cost saving opportunity of nearly US$340 billion for retail companies that can scale and expand their horizon of deployment.
Howbeit, only per cent of retailers have attained this level of deployment of AI, reveals a study. The study emphasizes how unleashing AI for various functions could serve to offer a multi-million dollar opportunity for retail companies. However, mostly, retail companies leverage AI capabilities for sales and marketing functions when it can be of significant use across the value chain.
As per findings of the tech giant, there is a clear imbalance of organizations that prioritize cost, data, and return on investment (ROI) when it comes to deploying AI. Also, only a handful among them consider AI to address customer pain points.
On the contrary, these two factors need to be seriously considered if long-term benefits of AI are to be reaped.
The study published by Capgemini is based on a sample of 400 global retailers that have deployed AI for different functions in the value chain. This sample accounts for 23 percent of revenue of the worldwide retail market. Apart from this, the study covers an extensive analysis of public data of the world’s top 250 retailers vis-à-vis revenue.
Furthermore, as per the findings of the study, 28 percent of retailers deployed AI in 2018 – a significant increase from 17 percent retailers and four percent retailers using AI in 2017 and 2016 respectively.
On the other hand, the study revealed AI was creating jobs dispelling fears of loss of jobs.