New report highlights key AI opportunities and challenges
Retailers believe Artificial Intelligence (AI) will give rise to significant opportunities to optimise supply chains, reduce costs and create more meaningful relationships with customers, according to research from CMS and Retail Economics.
This contains responses from 2,047 households throughout the UK and 33 large multiple retailers and consumer brands companies. CMS Partner Matthew Bennett comments: “Perhaps having learnt the lesson of failing to adapt quickly to emerging internet technology the first time around, many retailers and brands have been early adopters of AI relative to other industries.”
Numerous themes arise from the report, notably around trust and ethics, a generational divide amongst consumers, AI skills shortages within organisations, and significant legal and regulatory hurdles. “Whether delivering direct into fridges or using biometric data, AI-powered business models require heightened levels of trust. Our survey shows that consumer trust in retailers and consumer brands is low. However, we were pleased to see that organisations understand that AI ethics must be a key area of focus for them,” says Bennett.
“The complex patchwork of rules governing the use of AI can be a minefield to navigate. Where AI involves automated decision making or profiling there are regulatory hurdles to clear under GDPR, and other AI-technologies such as dynamic pricing fall within the realm of competition law.”