Bain & Co: Gen AI could boost retail chains’ revenues by 10%

by   CIJ News iDesk III
2024-07-03   12:00
/uploads/posts/b3a0c2e08b55c1b06546d1582333422efebb2dce/images/2028220939.jpg

According to Bain & Company, retail chains could see a 10% increase in revenues through the use of generative artificial intelligence (Gen AI) tools. The potential for boosting sales lies primarily in enhancing the product search process, creating personalized shopping assistants, and offering more effective shopping recommendations.

Experts at Bain & Company highlight that many industry-leading technology companies have already succeeded in personalizing the customer shopping experience using Gen AI-based solutions. These implementations have not only improved profitability by reducing operating costs but also increased sales revenue. Moreover, the application of Gen AI extends beyond personalizing the shopping experience and retailer-customer communication; it can also significantly boost marketing productivity.

“Leading retail chains have been testing generative AI solutions for some time and are already seeing significant benefits. We are on the brink of a commercial revolution akin to the advent of the internet. The challenge now is to scale these developed solutions. Companies that effectively utilize advanced AI for business development will outpace the competition,” said Patryk Rudnicki, a partner at Bain & Company.

“Retailers have experimented with AI tools to enhance marketing activities, but the scale of the opportunity is becoming clear only now. Companies that automate the generation of marketing materials stand to gain the most. Generative AI not only translates languages but also creates and adapts content, editing it as needed,” he added.

Bain & Company experts see significant potential in using AI to automate social media management and create dynamic, personalized websites, potentially increasing marketing productivity by 30-40%.

In software development, AI also shows promise. Bain & Company’s analysis indicates that retail chains can improve productivity by 25-40% in selected activities by implementing tools that automate coding tasks.

“Artificial intelligence will significantly impact key software development and control processes. New tools will automate bug detection in code and identify security vulnerabilities. Investment in AI offers a path to increased productivity and reduced risk, provided companies manage AI properly,” commented another Bain & Co partner.

Bain & Company’s analysis also reveals that AI solutions can assist retail chain employees, making their jobs easier and transforming operations at points of sale, warehouses, and offices. AI can automate assortment management, help acquire product information, and solve daily problems faced by store staff, potentially increasing employee productivity by 5 to 25%.

“There will soon be many new solutions on the market. The companies that succeed will be those that not only develop these solutions quickly but also achieve economies of scale through widespread implementation,” Rudnicki concluded.

Source: Bain & Company and ISBnews

Switzerland
Albania
Asia
Austria
Belgium
Bosnia & Herzegovina
Bulgaria
Central Europe
China
Croatia
Czech Republic
Denmark
Estonia
Europe
Finland
France
Germany
Greece
Spain
Hungary
Italy
Kosovo
Latvia
Lithuania
Luxembourg
Moldova
Montenegro
Netherland
North Macedonia
Norway
Poland
Portugal
Romania
Russia
Serbia
Slovakia
Slovenia
Sweden
Ukraine
United Kingdom
USA