'Navigating the Future of Food and Grocery Retail in the Age of AI’ with Alain Locqueneux

How does a seasoned manufacturer expect Generative AI to revolutionize retail?

It’s clearly a huge industry game-changer. I can definitely see AI creating opportunities with regards to the job market and changing lives for the better, but organizations and retailers will need to be aware of intellectual property risks that result from using generative AI.

How do you think it will impact people?

First of all, I don’t think people will be replaced, but I do think they will see their working life significantly change. Jobs will evolve, and so will competencies and everyday tasks. Low added value tasks might progressively disappear and eventually be replaced by more added value tasks. This means that at some point we will have to be retrained, so re-skilling and upskilling will be key.

?Should we anticipate a lot of backlash?

?Yes, first of all: people and organizations don't like change. We feel threatened by it. Bankers, traders, lawyers, salesmen, etc. are already afraid that their jobs will disappear from one day to the next. The backlash to AI could potentially be similar to the European farmers’ reaction to the Green Deal or the proposed green objectives.

How will AI influence retail?

The impact on retail will be tremendous. It has already started because there is now an opportunity for retailers to gather more relevant data on their consumers’ behavior and needs, allowing them to adapt their products and services much quicker.

Do you have a recent example of how AI is already redefining the customers’ shopping experience?

There is a platform called Mealz that uses AI algorithms to detect shoppers' tastes and provide them with personalized meal ideas while they're navigating, enabling customers to get personalized meal ideas, shoppable recipes, and weekly meal planning. The technology is already being used by one of the top five retailers in France.

And how is it allowing FMCG leaders to remain in pole position?

For instance, the 达能 was able to significantly improve its forecast accuracy by two points over the last few years because of AI. This is extremely significant with regards to cost setting, production optimization and product availability.

?How do we prepare for the unknown?

That’s a very good question. Nicolas Hieronimus, CEO of 欧莱雅 l recently summed it up perfectly: ‘If faut saisir ce qui commence’. I guess that translates into ‘Seize the moment’. That's exactly how I see AI: as something that has just started and therefore you need to get a grasp on it. First, you remain aware and agile. Then you test, you fail fast, and implement what works. You continuously listen and learn, all while remaining open to new tools and processes. It’s a very interesting model that also explains why L’Oréal is probably one of the most innovative and disruptive companies in the world.

?What makes you optimistic about the future of retail?

?The fact that companies like L’Oréal and Danone are already investing millions of euros a year to implement new tools and to get people prepared. For instance, L’Oréal has already implemented a central area of expertise for generative AI at group level. They also have trainings for most of their executives, and these trainings are implemented and rooted in re-skilling and upskilling programs. So knowing the CEOs of the top two FMCG groups in France are committed to innovation, without letting people off, is very reassuring to me.

Also, L’Oréal recently presented its ‘Beauty Genius’ at the Las Vegas Electronics Show. It’s an app, a digital assistant, that leverages AI technology to deliver beauty advice, skin diagnostics, and personalized products. It basically allows customers to make informed purchasing decisions. So seeing an FMCG company being awarded for its innovations at an electronic international show, makes me believe that FMCG CPG will be revolutionized by AI. In a positive way, with disruptive innovation that will benefit its customers.

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