Playbook
High-Impact Artificial Intelligence Use-Cases in Retail
Q1, 2025
The retail industry is experiencing a critical transition in AI implementation, where the gap between experimentation and enterprise-wide adoption presents a significant challenge. While retailers recognize AI's potential, many struggle to move beyond isolated pilots to achieve transformative scale. This has created an urgent need for clear frameworks and strategies to identify valuable use cases and successfully implement AI initiatives across the enterprise.
This playbook focuses on three high-impact areas where AI has demonstrated clear value: customer experience and commerce, store and employee operations, and supply chain and fulfillment. It builds upon the foundational framework of "Accelerate, Trust, Own" to provide detailed, practical guidance for scaling AI initiatives. By addressing both strategic considerations and tactical execution, it guides retailers through the journey from experimental pilots to enterprise-wide transformation, emphasizing the importance of scalable infrastructure, stakeholder trust, and proprietary innovation.
FOUR KEY B2C COMMERCE IMPERATIVES
Incisiv
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As consumers continue to reshape their expectations,
enterprises must contend with a uniquely challenging landscape.
The consumer technology landscape is forever changing.
From Pinterest to TikTok, WeChat to Instagram, new experiences can rapidly gain consumer adoption and relevance.
From augmented reality to voice, smartwatches to chatbots, consumers are constantly embracing new interaction paradigms.
Commoditized convenience is eroding loyalty and margin.
Consumers expect convenience. If you can't deliver it, they'll go elsewhere - e.g. next day shipping becoming the new standard.
Walmart will reportedly lose USD 1 billion on eCommerce revenue of USD 21 billion this year as it faces challenges in its bid to complete against Amazon – from trouble integrating its DNVB acquisitions to impact on margin from its next-day delivery operations.
Consumers value experiences that are curated to fit their lives better.
They want to engage, be served, and transact at their time, their pace, their place. They have little patience, infinite choice and the freedom to swipe left at the slightest hint of friction.
