However, the article also warns of the need for human oversight in GenAI-based customer interactions to avoid errors. It also highlights the role of GenAI in managing retailers' carbon footprint more effectively across the supply chain. By 2028, it is expected that 50% of retailers will offer AI-enabled contextualized recommendations to enhance customer engagement, and 55% of grocery supply chains will deploy intelligent IoT to track the condition of perishables, reducing food waste and improving quality.
Key takeaways:
- Retailers are increasingly investing in GenAI to improve customer experience, operations, supply chain, and merchandising, with a focus on personalized marketing and digital commerce.
- GenAI is expected to revolutionize the retail industry, with IDC predicting that by 2028, 50% of retailers will offer AI-enabled recommendations, increasing real-time interactions by 30% and conversion rates by 20%.
- GenAI can also contribute to sustainability in retail, with potential to manage carbon footprint, reduce material waste, and optimize transport for reduced emissions.
- Despite the potential benefits, experts advise significant human oversight in GenAI-based customer interactions to prevent errors and misinformation.