The use of Artificial Intelligence (AI) offers about $340 billion cost-saving opportunities for those retail sectors that are able to balance and increase the scope of their current deployments, according to a new global study from French technology services NSE 0.05 % major Capgemini.
But, only one percent of retailers have got this level of deployment till now, showed the results from the study titled “Building the Retail Superstar: How unleashing AI across functions offers a multi-billion dollar opportunity”.
According to the study, most retailers are concentrating their AI efforts on sales and marketing purposes. And there is also a major opportunity to release AI use cases across the value chain.
“Our research shows a clear imbalance of organisations prioritizing cost, data and ROI (return on investment) when deploying AI, with only a small minority considering the customer pain points also,” Kees Jacobs, Vice President, Global Consumer Products and Retail Sector at Capgemini said in a statement.
Jacobs also said, “These two factors need to be given equal weightage if long-term AI growth, with all of the benefits it brings, is to be achieved”.
For the study, published by the Capgemini Research Institute has published a study on 400 global retailers, who have implemented AI use cases at different levels of maturity. This group of retailers represents 23 percent of the global retail market by revenue.
The study also included a wide analysis of public data from the world’s largest 250 retailers, by revenue.
The researchers found over a quarter (28 percent) of retailers were using AI in 2018, a major increase of AI deployments from 2017 (17 percent) and a seven-fold increase from 2016 (four percent).
Due to the job loss fears, 71 per cent of retailers said AI was creating jobs now. But more than two- thirds (68 percent) of the jobs were of a senior level which could be out the reach of lower-skilled retail workers AI may displace.
According to the study, 75 percent stated that AI has not replaced any jobs in their organisations till now.