AI IS The Retail Nervous System
Gartner February 2023

AI IS The Retail Nervous System

AI is surging ahead in retail, and many types of use cases permeate the entire business value chain. In its larger role, AI functions as an organization’s nervous system supporting continuous adaptation. In this research, retail CIOs will find a strategic framework to analyze possible AI use cases.

Overview

The human nervous system is a complex network of nerves and cells carrying messages to and from the brain, through the spinal cord, to various parts of the body. Senses send 11 million bits per second to the brain for processing. The conscious mind can process only approximately 50 bits per second, although the brain has 100 billion interconnected cells. As a result, the brain is equipped with many processors, capable of executing 100 billion operations per second.

Historically, it was assumed that consciousness was the dominant feature of the brain. However, it appears that most of the processing is accomplished outside conscious notice, and that most of the body’s activities take place outside direct conscious control. Practice and habit are drivers because they train circuits in the brain to automatically carry out actions without conscious interference. If humans had to consciously process 11 million bits per second, life would not be possible. Automatic activities and anticipatory reflexes enable people to focus conscious processing on more complex tasks, supporting adaptation.

Embracing AI as a central nervous system will help retailers to gain competitive advantage by enabling them to constantly read signals and proactively predict and respond agilely to events. Resources will be automatically reconfigured and redeployed to maximize opportunities, while higher-level conscious decision making is informed by various signals to drive adaptation strategies.

Key findings:

  • Real time will not be fast enough to drive retail commerce in the new decade.
  • AI must function as a nervous system, serving as a foundation for retail adaptation strategies, providing intelligence, automation and augmentation of the human workforce.
  • Leveraging the strategic framework for AI use cases is a way to ensure that projects align with digital business strategy.
  • There are many active examples of different types of AI use cases in retail today.

Gartner clients can download the entire report and toolkit here:

Preparing for the AI-Based Retail Nervous System

#artificialintelligence #ai #retail #retailtechnology #future #retailtrends

Mike Weber ??

All-in Retail Tech. Experienced Marketer, Constantly learning husband and dad of 4.

2 年

Bob Hetu I think there is a fascinating corollary for the retail nervous system in grocery -- store level, real-time forecasting and inventory - which drives replenishment ... and can inform how associate tasks are guided. There are only a few firms in food retail capable of pulling off the system you have researched / analyzed.

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