The advent of ChatGPT towards the end of the previous year has sparked a flurry of interest in the utilization of generative AI and related technologies. This enthusiasm is palpable in the agenda for IRX & eDX 2023, scheduled to be held at the National Exhibition Centre in Birmingham in late May.
How will the emergence of generative artificial intelligence transform the retail landscape? How should retailers leverage this nascent technology, which has garnered significant media attention since the release of ChatGPT in November? Moreover, how can retailers optimize the use of other AI tools and automation to enhance the experiences of both employees and customers?
These pivotal questions will be addressed at the upcoming IRX (InternetRetailing Expo) and eDX (eDelivery Expo), evident from the event agenda. Registration for this premier digital retail show, taking place on May 24th and 25th at the National Exhibition Centre in Birmingham, is currently open and free.
One session of particular interest is the panel titled “Envisioning an Optimal Online Experience by 2025: What Are Your Next Steps?” featuring Aurelie Seth, Senior Product Manager at The Whisky Exchange, and Victoria Ntale, Senior Customer Care Manager at Lyst. These industry experts will share their valuable insights and wisdom.
Additionally, a fireside chat on “Captivating Gen Z with Your Mobile App: Enhancing Consumer Experience” will bring together Dr Amna Khan, Senior Lecturer in Consumer Behaviour and Retailing at Manchester Metropolitan University Business School, and Michelle Gledhill, Programme Leader of MSC Creative Advertising Strategy at Manchester University.
Furthermore, Lois Richards, Logistics and Operations Lead at Astrid & Miyu, a contemporary London-based jewellery brand, will lead a session titled “Streamlining Fulfilment Processes: Automation for Cost Savings and Operational Efficiency.”
Lastly, Maria White, Search Lead at Kurt Geiger, will delve into the question of “The Role of ChatGPT in Retail.” Engaging with these agenda items, attendees of IRX and eDX will gain valuable insights into the industry’s trajectory and accelerate their AI initiatives for the benefit of both employees and customers.
Integrating the Digital and Physical Realms
In alignment with the theme of this article, IRX sought insights from ChatGPT, a sophisticated language model trained on an extensive corpus of 300 billion words by OpenAI. The question posed was: “How can retailers effectively utilize generative AI?” Within seconds, the program provided a comprehensive list of ten potential applications of generative AI that can enhance business operations, customer experiences, and marketing strategies.
One noteworthy example is personalized product recommendations. Generative AI can analyze customer data, purchase history, and preferences to deliver tailored product suggestions, thereby enhancing sales and customer satisfaction.
Retailers can take inspiration from industry giants like Amazon and Netflix in this realm. The “what to watch next” recommendations offered by Netflix provide a glimpse into the possibilities of digital retail. Retailers who have daringly implemented similar technologies in physical settings have witnessed remarkable success, as affirmed by Adam Warne, Chief Information Officer at River Island.
River Island recently introduced “smart fitting rooms.” Warne, who will be speaking at IRX in a session titled “Embracing Rapid Change in Your Business to Thrive in Challenging Times,” elucidated, “All garments are equipped with radio-frequency identification tags, and the fitting-room screens allow customers to request different sizes, while also suggesting other products that complement the items being tried on, even if they are only available online.”
He further added, “This innovation has not only led to increased order value but also blurred the boundaries between the digital and physical realms.”
Regarding the query on how generative AI could enhance the relationship between retailers and customers, ChatGPT highlighted the technology’s potential in store design and layout. By analyzing customer behaviors and preferences, generative AI can optimize product placement to maximize performance. This application holds the promise of creating a more enjoyable and efficient shopping experience for individuals.
The conversation with ChatGPT also explored other valuable applications of generative AI, such as supply chain optimization, improved end-to-end visibility of products and materials, content generation, market analysis, and trend forecasting. Additionally, it can assist in dynamic pricing strategies by considering factors such as customer preferences, competitor pricing, and market conditions.
Unsurprisingly, the discussion included the use case of “chatbots and customer service.” Many online retailers have already integrated AI-powered chatbots to handle customer inquiries, provide support, and guide shoppers throughout their purchasing journey. However, there is still room for improvement in this area.
The conclusion drawn from ChatGPT’s insights is that by seamlessly integrating generative AI into their operations, retailers can achieve improved efficiency, cost reduction, and enhanced customer experiences.
It is essential, however, to take note of the cautionary words expressed by industry leaders, including Elon Musk and a multitude of high-profile signatories, encompassing engineers from Amazon, DeepMind, Google, Meta, and Microsoft. In an open letter, they called for a pause in the accelerated development of generative AI, emphasizing the importance of comprehending, predicting, and reliably controlling the effects of these powerful AI systems. They advocate for responsible and manageable AI development.
Retail leaders would be wise to heed these warnings and ensure that human involvement remains central when harnessing generative AI. Failing to do so may lead to a loss of customer trust and loyalty. The responsible adoption of AI is sure to be a prominent and compelling topic of discussion at IRX and eDX this year, both on and off the stage.
Don’t miss out on the opportunity to explore these critical topics at IRX & eDX, taking place on May 24th and 25th at the NEC in Birmingham. Register now for free to secure your place at the UK’s premier digital retail show. #IRX23 #eDX23
https://internetretailingexpo.com/
Derick is an experienced reporter having held multiple senior roles for large publishers across Europe. Specialist subjects include small business and financial emerging markets.