Unleashing the power of Gen AI in CPR industry – ETRetail

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Generative AI, or Gen AI, is revolutionizing the consumer products and retail (CPR) industry, bringing about significant transformations for consumers and businesses alike. The impact of Gen AI is not to be underestimated. Gen AI has data as its backbone. The CPR industry generates a huge volume of data, which is leveraged to train artificial intelligence (AI)-based models returning valuable insights in a conversational style with rich semantic comprehension. These are used to personalize marketing campaigns, transform customer engagement and service, and enhance operational efficiency and productivity. Shaping the customer experience

Gen AI enables new touch points and facilitates unique channels, pushing the frontiers of customer experience. The technology enables CPR firms forge lasting relationships with their customers using hyper-personalization at scale. For instance, young technology-savvy professionals have a keen interest in applications helping them stay fit. New-age Gen AI-enabled fitness apps provide personalized exercise and nutrition plans based on factors such as health status, lab reports, Body Mass Index (BMI), dietary restrictions, and exercise levels. These apps also suggest exclusive beverage and meal recipes tailored to each individual’s preference, constantly improving recommendations based on user feedback. It is not hard to imagine future cooking robots communicating with smart refrigerators, automatically creating interactive shopping lists (custobots) and preparing personalized meals.Today, GenZs with disposable income are a target group for luxury fashion brands. Targeted communications from favoured brands, which feature products customers have shown interest in, will be the norm rather than the exception. Direct marketing mailers could show product categories viewed in-store or abandoned in online carts. These personalized communications make the customer feel valued. In-store experiences are enhanced with detailed product descriptions, AI-generated imagery, well-informed sales assistants, and chatbots. As sustainability considerations guide the buying decisions of conscious consumers, organizations will integrate high-quality synthetically-generated images to reduce campaign costs and promote sustainability. Gen AI prompts and 3D printing could be leveraged to create-uniquely customized designs. Customer service chatbots responding contextually and offering personalized post-sales communication augment the shopping experience, along with 24/7 multilingual support.

Transforming business functions

At the design phase, Gen AI reduces time, cost, and complexity by using iterable 3D images enabling faster time-to-market. High-quality images for online and social media use are synthetically generated, elevating digital advertising. Research and data also explain the wide adoption of synthetically-generated messages for marketing campaigns. According to Gartner, 30 per cent of outbound marketing messages will be synthetically generated by 2025. Understanding user preferences, Gen AI optimizes advertising return on investment (ROI) by focusing on semantics rather than just keywords. Customer experiences benefit from hyper-personalization and augmented content, leading to increased revenue and profitability.

In-store sales assistants use Gen AI-powered clienteling tools and chatbots to get data-based customer insights in natural language, enabling hyper-personalization and self-service. Gen AI also improves supply chain operations through warehouse automation, real-time inventory management using analytics, and the utilization of augmented reality (AR). It also fuels innovation and stimulates strategic debates. While the adoption of Gen AI by the CPR industry will continue through 2024, some industry players have been taking the early-mover advantage. Sephora, Amazon.com, Carrefour (chatbot Hopla), Walmart, Mercari (virtual shopping assistant, Merchat AI) are some examples of CPR firms actively using generative AI.

Intellectual property rights, the ownership of Gen AI-produced content, data privacy and security, bias and misinformation need individual and legislative attention. Careful consideration must be given to sustainability as the storage of data required for model training consumes significant amounts of energy.

Gen AI is dramatically transforming the CPR industry, offering opportunities for the augmentation and acceleration of human efforts. However, it is essential to manage expectations and identify appropriate use cases to maximize its impact. Gen AI has firmly established itself in the CPR industry and will continue to redefine its future.

(DISCLAIMER: The views expressed are solely of the author and ETRetail.com does not necessarily subscribe to it. ETRetail.com shall not be responsible for any damage caused to any person/organization directly or indirectly.)

  • Published On Mar 11, 2024 at 01:10 PM IST

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