How is AI changing retail?

Welcome to Salesforce’s Retail Roundup! In each issue, we spotlight the retail industry’s hits and misses, hot topics, and hype.?

This month, we’re talking about AI and Dreamforce – two of our favorite things. Read on to learn:

• How AI can revolutionize customer experiences and retail operations
• What retailers will be talking about at #DF23
• Quick tips for transforming your Cyber Week pricing strategy with AI

Industry Insider: Rob Garf?

It’s nearly impossible to have a meeting these days without discussing the impact of AI on the shopping experience. Talking with hundreds of retailers over the last few months, it’s clear to me this technology has the potential to transform how people shop — and how brands operate — across marketing, commerce, and service. In fact, our research shows 92% of retailers are investing in Al to improve shopping experiences.

So what are executives thinking about... beyond the promise of supercharging existing processes? Here are the five key themes I’m hearing:

• Customer experience: Whether your goal is top-line growth or bottom-line efficiency, the focus should be on enhancing the customer experience .
• Trusted data: AI’s output is only as good as the data you input. Your own relevant, robust, trusted data is the best source to ground results.
• Workflow: You’ll realize AI’s true value when you embed it in applications and toolkits employees use to engage shoppers, make decisions, or execute tasks.
• Humans in the loop: AI will shift priorities, not reduce jobs. Most generative AI will require a human in the loop to ensure context and brand compliance.
• Getting started: Nobody totally knows what “good” looks like yet, but the industry is gravitating towards practical use cases that have immediate value.

We predict that $194 billion of online sales this holiday season will be influenced by a combination of predictive and generative AI.

Dreamforce is almost here, and one of the things I'm most excited about is hearing first-hand from leading retailers and global brands how they are achieving results with practical, impactful applications of AI. I hope to see you there!

Dreamforce Deepdive: Retail Edition

Ready to join the action, whether IRL or on Salesforce+ ?

Dreamforce's retail roster is packed with companies and personalities from shopping’s front lines and back rooms. To hear the latest on AI, personalization, shopping experiences, and ROI wins, be sure to check out these sessions.

• Uncover the transformative power of Generative AI in shopping. Salesforce’s Retail Keynote will explore the game-changing impact of generative AI with Matt Marcotte , Julia Napolitano , Rob Garf , and more.

• Explore Generative AI 101 for Retail with Industry Trailblazer Ahold Delhaize and Salesforce's Alex Drinker and Gordon Evans . Find out how AI will transform retail operations, supercharge personalization, and redefine shopper connections.

• Discover our holiday shopping predictions . Salesforce’s Michelle Grant and Rob Garf and Tillys ' CDO Jon Kosoff will discuss what the trends shaping the holiday shopping season mean for you.

Check out all of the retail sessions at #DF23.

Cyber Week Pricing That Makes (Dollars) and Sense

Are you ready for Black Friday? Our Q2 data shows shoppers are on the hunt for discounts , with more than half of consumers planning to buy less this holiday season. If you want to crush Cyber Week, your pricing and promotion strategies need to be on point. The good news is AI can give you the edge by recommending pricing that makes shoppers merry .

Generative AI looks at historical sales data and pulls in store video and photos, social media posts, competitor websites, online reviews, and more to gauge consumer interest and their willingness to pay.

Based on the data, it can create pricing scenarios that balance inventory, demand, and margin, then make real-time adjustments to respond to changing shopping conditions throughout the week (and season).

By combining AI with your trusted customer data, you can inform and transform your pricing and promotional calendar straight through Cyber Monday with:

• Price optimization
• Dynamic pricing
• Strategic discounting
• A/B testing

Want to learn how? Check out our latest blog for pro tips on using AI to create winning pricing strategies this holiday season.

Retail Checkout

What else is new in retail? Check out:

• Our Shopping Insights HQ : Turn holiday shopping trends into yearlong retail success with data from 1.5+ billion global consumers. This month we look at what back-to-school shoppers are buying.

• Digital Commerce 360 ’s article on how and why many retailers are switching to stricter return policies.

• Our new Connected Shoppers Report : The fifth edition is out! To learn more, register now for the October 11th webinar . Michelle Grant will discuss the report’s results and how to use the data to meet changing shopper expectations.?
• Wondering how generative AI will impact customer service this holiday season ? Watch the on-demand webinar now.

Retail Q&A

What's the most innovative use of AI you've seen in retail? Let us know in the comments below.