Rethinking AI: Is it Your Next Big Move for Your Business to Thrive?
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Artificial Intelligence (AI) is no longer just a buzzword or a distant future—it's right here, reshaping the very fabric of how businesses interact, grow, and stay competitive.
Since ChatGPT blew up and became the fastest-ever consumer service in history (reaching 100 million users in just two months), AI has broken into the mainstream and is here to stay.
But, as with most things these days, there’s a lot of hype with new products flooding the market. Fears and conspiracies. Myths and new understanding.
What does all this mean for your business?
As decision-makers, the question isn't if AI will pervade the intricate aspects of your business but rather how you will harness its potential to propel your company into a future of growth and innovation.
The Promise & Potential of AI
Imagine a world where faults in your business are predicted before they even emerge, enabling you to implement solutions before the problem even appears.
The power of AI means creating content that speaks to your customers’ pain points and needs after building an understanding of their behaviour, or streamlining your logistics’ routes based on real-time information, giving you the most economical drive with the best ROI.
Deciphering purchasing trends, predicting future sales volumes, designing transformational strategies, the potential and impact of AI are incredibly real, notably within the retail sector.
On the Horizon: Three Nascent AI Segments
It's crucial to bear in mind that we’re not just talking about AI as some kind of add-on to gain some benefit for your business.
With the capacity to enhance productivity by up to 100%, the potential to increase profits by a whopping $4.4 billion per year, and the ability to improve the customer experience for nearly 73% of shoppers, implementing AI isn't an option; it's a necessity.
Impact of AI Integration on Modern Business Conduct
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AI isn't just contributing to modern business conduct; it's revolutionising by sparking innovation, turbocharging efficiency, slashing costs, amplifying sales, and enhancing customer experience.
Fostering Innovation
AI, when merged with the ethos of design thinking, empowers businesses to innovate at unprecedented levels.
LEGO’s 6 Bricks concept aims to nurture innovation, collaboration, and creativity - a simple yet effective method for sparking creativity and generating ideas.
The concept involves using just six LEGO bricks and coming up with as many designs as possible. Mathematician Søren Eilers embarked on a captivating mathematical journey, unleashing a computer program that ran non-stop for a week, unveiling a jaw-dropping 915,103,765 combinations.
With just six LEGO bricks.
Additionally, others have joined the AI race, releasing unofficial apps like BrickIt, software that uses smartphone camera software, a database, and AI technology to scan a random pile of LEGO bricks to then suggest possible building ideas.
It’s this level of creativity and fun that can spark so much enjoyment and immersion of LEGO fans, opening a whole new way to interact with the product and contributing to the 1% revenue growth in the first six months of 2023 (now worth about $4 billion), even in an industry where competitors, including Mattel, Hasbro, and Jakks Pacific, all reported double-digit revenue and sales declines.
Increasing Efficiency
Hailed by many as one of the companies pioneering AI and technology in retail for many years now (since 2017), Lowes has found many ingenious ways to incorporate AI into their workflows, streamlining both operations and their customer experiences.
Their innovative use of AI transformed the shopping experience, such as providing real-time guidance for customers to products and queries handling, reducing labour time on simple informational tasks.
They’re also using AI for predictive analytics, minimising stock discrepancies and maximising shelf availability, while driving significant gains in efficiency and security across the industry.
AI-powered tools alleviate manual, time-consuming tasks, enabling employees to focus on creative problem-solving and core business goals.
Boosting Sales
By far, one of the most widespread benefits of using AI is to boost sales. Through predictive data analysis, it’s never been easier to enhance your funnel and boost sales.
Fashion retailer, H&M, employed over 200 in-house data scientists to use AI to optimise every aspect of their business. Utilizing AI-powered analytics, they’ve analysed customer behaviour and purchase history, creating personalised product recommendations that resonate with individual customer preferences, increasing AOV.
AI has helped them cut back on 40% of their in-store lines, streamlining their 4,200+ stores to offer the best products for the best prices, and cutting out those that are under-performing.
Lastly, they’re speeding up the process of implementing automated warehouses powered by AI. They’re able to automatically respond to customer demands to ensure each store is sufficiently stocked based on the store’s demands. Due to this streamlined processes, H&M aims and is well underway to offer next-day delivery to 90% of their European market.
Uplifting Customer Service
Gone are the days of support agents sitting for hours typing out the same message to each customer with a query.
Oppo India has leveraged AI to reinvent its customer service with their dedicated AI-powered chatbot, 'Ollie', which operates 24/7, handling an astounding 94.5% of their customer inquiries and bagging the top spot in after-sales service rankings.
With the lowest waiting time during customer care calls by responding to 50% of queries within 15 mins, an impressive 93% of customers regarded their experience as either 'very good' or 'excellent'.
This is the power of AI, and it’s experiences like this that will keep customers coming back for more.
AI, IoT, and Chatbots: Customer and Employee Experiences Transformed
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Remember the last time you went on a website and didn't see a chatbot popping up in the corner and asking if they could help you? This embodies the accelerates globally to embrace AI in crafting unparalleled customer experiences.
The Swift and wide-ranging adoption of AI is predominantly fuelled by enterprises recognising its immense value in customer service. We repeat because this is so important for your business to understand - this transformative technology isn't merely 'nice-to-have'; it's a vital tool that's significantly enhancing the connection between companies and their customers.
How are customers treated when they come to your business? Do they get what they came for quickly and easily? Are their pain points addressed?
What about loyal, returning customers? Do they feel valued? Are their problems solved quickly? Do they like numbers or human beings? Are they satisfied with every interaction they have with you?
Even one bad experience can prevent a customer from coming back forever (statistics show that 30% of customers will leave a brand they love after just one negative interaction - 92% after two or three).
This is the problem that AI solves.
Breaking this down into three main elements:
- AI
Retailers can anticipate customer trends and optimise workflows. That's invaluable for solving complex business problems and providing personalised customer experiences. For instance, 63% of retailers in the APAC region believe AI will significantly influence their business operations in the next five years.
- IoT
Smart devices and connected systems make it possible to interact in real time. They track inventory, monitor supply chains, and unify different retail platforms. It's estimated that the APAC retail sector will invest $7.5 billion in IoT tech by 2023 - a testament to its effectiveness.
- Chatbots
Quick to respond and available 24/7; chatbots assist both customers and employees. These virtual helpers reduce wait time, address queries, and automate mundane tasks.
- MongoDB, who implemented the Drift chatbot system and increased their leads by an incredible 70% in just three months.
- Leadpages, also using the Drift chatbot system, increased their chat message volume by 267%, simultaneously improving website conversions by 36%.
- Varma, a pension insurance agency, saved 330 hours by implementing a chatbot system into their customer experience, automating tasks, and allowing staff to focus on other matters.
- Amtrak, a popular travel agency, increased booking rates by 25% and user engagement by 50% once having implemented a chatbot system to help handle customer questions and queries automatically.
The trinity of modern tech, there's no denying AI, IoT, and chatbots are critical to creating seamless retail experiences.
As these technologies progressively intertwine with the retail industry, expect customer and employee experiences to become more streamlined.
Keep an eye on this space because the retail revolution has only just begun.
Understanding the Challenges of AI
Although AI technology is a dynamo of innovation, it isn't devoid of challenges.
Companies venturing on this transformative path need to be aware of potential roadblocks. It's not just about harnessing the power of AI; it's also about proactively mitigating the associated risks, allowing for a smooth experience and the best ROI.
This two-pronged approach ensures a smoother journey towards AI-driven success.
