Retailers drive AI new wave but IMF reinforces job fears

UK retailers are now leading the charge to adopt generative AI as a key tool to reinvent themselves, with 81% of bosses feeling an urgency to implement the tech in their business, and over half ready to deploy it immediately.

So says a new study from Google Cloud, commissioned from NewtonX ahead of this week’s NRF 2024 global retail event being held in New York, which reveals that nearly all (97%) of these surveyed in the UK said that GenAI will have a major impact on customer experience (CX).

The rapid deployment of the tech is also set to spark a recruitment frenzy, with 80% of organisations prioritising hiring data scientists, with AI-related product managers and developers (76%) being the most sought after, followed by machine learning engineers (65%) and prompt engineers (45%).

Google Cloud UK&I director of retail Alex Rutter said: “GenAI is fast becoming a key solution to an array of business challenges.

“Last year, retailers in the UK like John Lewis and GymShark, began to experiment with this technology, finding new ways to engage customers, optimise operations and boost productivity. The uptake of GenAI for the industry will be even greater in 2024, as businesses progressively turn to AI to fuel their next phase of growth.”

In the year ahead, the survey reveals five main anticipated use cases for the technology, with two-thirds (66%) of retailers planning to use GenAI to streamline customer service with less human intervention by providing conversation summaries, automating tasks, and ultimately driving conversion. This could include appointment scheduling, transactions, and inquiry resolutions.

Nearly half (48%) want to use GenAI to accelerate product categorisation and generate great customer-centric marketing copy and 46% of want to use the tech to address shopper enquiries with interactive responses beyond just product recommendations.

In addition, 43% said they want to use it to analyse emotional sentiments in customer feedback, while 39% want to use GenAI to empower retail creative teams to curate bespoke images and creative content for campaigns and editorial placements. They are also looking to AI to enable one to one personalisation.

Meanwhile, a new Capgemini’s study reveals that nearly three-fifths of Gen Z consumers (55%) have already bought products recommended by AI tools.

The third edition of Capgemini’s annual What Matters to Today’s Consumer survey quizzed 11,681 adults during the past quarter in Europe, North America and Asia-Pacific and reveals that while most consumers (55%) believe AI has enhanced their shopping experience, two-thirds are also wary of it.

Even so, retail organisations are ploughing on, with nearly eight in ten saying that generative AI can help improve internal operations and enhance facility maintenance.

However, both reports must be tempered by a fresh warning from the International Monetary Fund (IMF) that AI will affect up to 40% of jobs worldwide, rising to 60% of roles in advanced economies like the UK.

In a new report, the IMF said that although AI’s consequences for society remain difficult to predict, the technology is likely to exacerbate income and wealth inequality.

IMF managing director Kristalina Georgieva said the world is “on the brink of a technological revolution that could jumpstart productivity, boost global growth and raise incomes around the world” but while automation has often affected routine tasks, AI is unusual because it could impact well-paid careers.

The report states: “Jobs that require nuanced judgment, creative problem-solving, or intricate data interpretation – traditionally the domain of highly educated professionals – may now be augmented or even replaced by advanced AI algorithms.

“In most scenarios, AI will likely worsen overall inequality, a troubling trend that policymakers must proactively address to prevent the technology from further stoking social tensions.”