Artificial intelligence could help retailers save up to $340bn, says Capgemini report

The use of artificial intelligence (AI) could help retailers save as much as US$340bn, according to a recent study by Capgemini.

In it’s report entitled ‘Building the retail superstar: How unleashing AI across functions offers a multi-billion dollar opportunity’, Capgemini pointed out how more than a quarter of the top 250 global retailers are integrating AI into their organisations.

However, the study added that only 1% of these AI initiatives reach full-scale deployment.

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Surveying 400 retailers who are implementing AI use cases at different stages of maturity, the study found that most retailers are focusing their AI efforts on sales and marketing where there is a significant opportunity to unleash AI use cases across the value chain.

"Our research shows a clear imbalance of organisations prioritising cost, data and ROI (return on investment) when deploying AI, with only a small minority considering the customer pain points also," explained Kees Jacobs, vice-president for global consumer products and retail sector at Capgemini.

"These two factors need to be given equal weighting if long-term AI growth, with all of the benefits it brings, is to be achieved," he added.

The study also found that over a quarter (28%) of retailers deployed AI in 2018, a substantial increase of AI deployments from 2017 (17%).

Elsewhere, 71% of retailers highlighted how AI would help to create jobs, dispelling fears of major job losses.

It is estimated that global annual spending on AI by retailers will top $7.3bn by 2022, according to Retail Dive.