Generative AI and World of OmniChannel Retailing

Generative AI or Artificial Intelligence is an emerging transformative force, situated at the core of every economic, societal and educational debate now. ChatGPT is taking the marketing world by storm and it’s easy to understand why. AI is necessary to scale end-to-end personalization.AI will continue to disrupt and enhance the world of marketing in the years to come. What is exciting, is that any company, no matter the size, can take advantage of AI capabilities. It is no longer confined to the world of large enterprises with massive data sets, but?It is only touching the tip of the iceberg. As per a McKinsey report, with the help of generative AI there can be a reduction of 10%-20% in the development timelines for auto parts.

omnichannel marketing is a multichannel approach to marketing that’s focused on providing seamless customer experiences, whether the customer is shopping online (such as from a mobile device or laptop) or in a brick-and-mortar store.?

In today’s data-driven world, businesses are constantly seeking innovative ways to gain a competitive edge. The integration of generative Artificial Intelligence (GAI) in Omnichannel analytics tools is one such avenue, it has gained immense popularity in recent years. This cutting-edge technology is transforming the way organizations collect, analyze, and leverage data to enhance their decision-making processes and ultimately drive success. Understanding the diverse needs of retail customers is essential for creating value that resonates with them. GAI is used to create new content such as videos (V), images (I), texts (T) and audio(A). (VITA)

Omnichannel analytics (OCA) is the practice of gathering and analyzing data from multiple channels, such as

1. W: websites,
2. M: mobile apps,
3. S: social media, and
4. P: physical stores, to gain a holistic view of customer behavior and preferences.

This comprehensive approach helps businesses tailor their strategies to meet customer needs effectively and provide a seamless experience across all touchpoints. This transformative technology, capable of learning and generating content, visuals, and even code, is rapidly redefining the customer experience, optimizing operations, and fueling innovation.

a. Hyper-personalization: Imagine an AI-powered shopping assistant suggesting complementary items to complete your outfit or recommending similar styles from different brands – all based on your past choices and current browsing session.

b.Virtual experiences: Generative AI (GAI ) can create realistic 3D models of clothing, shoes, and accessories that can be virtually "worn" by customers using augmented reality (AR) technology.

c. Enhanced storytelling: Generative AI (GAI) can create unique and engaging marketing content, including personalized ads, product descriptions, and even video demos, that resonate deeply with individual customers.

d. Supply chain optimization: Supply chain optimization: GAI system forecasting the popularity of a new sneaker launch, helping the manufacturer adjust production timelines and avoid costly overproduction or understocking.

e. Dynamic pricing and promotions: Generative AI can analyze factors like market trends, competitor pricing, and customer behavior to generate personalized pricing strategies and targeted promotions for individual customers or product categories.

f. Automated content creation: From product descriptions to social media posts, generative AI can automate the creation of engaging content, freeing up marketing teams to focus on strategy and creative direction.

Real-World Applications of Generative AI in Omnichannel Analytics:

1. Retail and E-Commerce

Retailers can utilize generative AI to optimize product recommendations, inventory management, and pricing strategies. This leads to higher sales, improved customer satisfaction, and efficient supply chain operations.

1. Finance and Banking

In the financial sector, generative AI is used for fraud detection, risk assessment, and portfolio management. It helps institutions identify unusual patterns and make informed decisions to safeguard assets.

3. Healthcare and Pharma

?A healthcare knowledge repository can be created using generative AI by feeding healthcare documents and FAQs into LLMs. This repository will provide accurate healthcare information to patients quickly via virtual assistants.

4. Marketing and Advertising

Marketers benefit from Generative AI’s ability to create personalized ad campaigns, optimize ad spend, and predict consumer behavior. It maximizes ROI and minimizes wasteful spending.

?Summing Up:

Prioritizing Customer Experience (CX), retailers in recent years have worked with different strategies to improve this aspect in their transformation efforts. As buying behaviour moves online with omni-channel engagement, the CX journey is acquiring deeper meaning with bottom-line implications for business. (Santhosh Subramaniam)

The impact of generative AI in retail is already being felt, and the numbers speak for themselves:

• A McKinsey & Company report estimates that AI could boost retail earnings by up to $1.2 trillion by 2025.
• A study by Accenture found that 72% of retail executives believe AI will be critical to their future success.
• The global market for generative AI in retail is expected to reach $18.5 billion by 2026, growing at a compound annual growth rate (CAGR) of 32.7%.