SURVIVING AI -WHY CREATIVITY WILL WIN IN RETAIL

Looking ahead, the next ten years are set to be transformative for the retail industry, thanks to the advent of artificial intelligence. The big takeaway? Businesses that plow their AI savings back into fostering human creativity are the ones that will thrive. Around the globe, retailers are about to experience a significant boost to their profits, driven by AI's ability to streamline operations and cut costs like never before.

Today’s AI, such as OpenAI's ChatGPT4, isn't flawless. Its outputs can be hit or miss, but we're witnessing rapid improvements in this technology. As generative AI continues to evolve, its potential seems limitless.

AI is making its mark everywhere, from enhancing customer interactions to optimizing the complexities of supply chains, driving efficiencies to new levels. But this comes with a steep cost—widespread job cuts.

Research by Gartner suggests that AI could replace one in every ten jobs in call centers by 2026, saving businesses around $80 billion in wages. That's a clear indicator of the powerful economic reasons driving widespread AI adoption in every corner of company operations. Now, think about the numerous employees whose daily tasks involve processing and managing data crucial for strategic decisions and seamless business workflows. If AI renders even a small fraction of these jobs obsolete, we could see job loss on a scale we’ve never encountered before. And yet, the challenges that AI presents are not just about job displacement.

In a future dominated by AI, companies must carve out new competitive advantages. For example, if a company has always outpaced its competitors by making quicker, smarter decisions, what happens when AI levels the playing field?

Take a fashion brand known for its keen sense of upcoming trends. How will it stand out if every competitor also uses AI to predict and react to the next big thing in fashion?

The secret sauce is something AI hasn't mastered: true innovation. Human thinking is uniquely capable of divergent thinking—generating a multitude of ideas, which is crucial for real innovation, while AI tends to follow a more linear, convergent thought process.

Many might cite AI’s forays into art and writing as evidence of its creative capabilities. However, true innovation is more than just replicating what already exists; it emerges from a complex mix of our genetic makeup, our environments, our relationships, and our emotional experiences—areas where AI cannot tread.

Let's talk business sense; the connection between creativity and profitability is well-documented. McKinsey reports that the most innovative companies are also the most profitable, raking in up to 2.4 times the earnings of their less innovative peers. They also navigate crises more effectively, an increasingly crucial ability in today's volatile world.

Yet, perhaps the most compelling argument for investing in human creativity is its scarcity. While creativity is innate in young children, it's a rare trait among adults—something that our education system and societal norms have gradually stifled.

Today, the need for creative thinking extends beyond traditional 'creative' roles. It’s clear that businesses must make a choice: bank the AI savings or invest them in human creativity, potentially the most significant competitive edge left in the AI era.