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A version of this article was originally published on Google Cloud’s blog. It explores how retailers and consumer goods companies are already putting generative AI to work and seeing real returns across their businesses.
Once a futuristic concept in the world of retail and consumer packaged goods (CPG), generative AI (gen AI) is now a powerful tool reshaping the industry and having an impact for many organizations. Gen AI holds enormous potential to improve customer experience, marketing and field productivity, and security.
Our survey of 376 retail and CPG executives reveals how these leaders are actively deploying gen AI to drive tangible results. We discovered that retail and CPG leaders are not just experimenting with gen AI. They are actively deploying it to drive immediate, demonstrable results across their organizations.
But how exactly are retailers using this technology, and what kind of impact is it having online, in the aisles, and on the bottom line? Our survey found more than a dozen ways the industry is already reaping rewards from generative AI. We’re sharing three of the most compelling examples here; you can download the full report to explore more.
Source: Google Cloud, Global, The ROI of Gen AI in Retail and CPG, retail and CPG organizations currently leveraging gen AI in production, n=248, Feb. 23, 2024–April 5, 2024.
Retail and CPG organizations are using gen AI to enhance customer experiences, moving beyond simply improving customer support to improving each customer touchpoint — with nearly 3 in 5 reporting improvements from their gen AI implementations.1
AI stylists can create visual representations of suggested looks, using gen AI to generate images or videos.
Gen AI-powered tools are automating call transcription and summarization, generating smart replies, and responding to frequent customer questions faster. This means customers get the information they need quicker and with greater accuracy.
But gen AI can go even further by delivering truly personalized experiences. Imagine AI stylists that combine customer data with a retailer’s products and promotions to offer personalized style recommendations across multiple visits and channels. These AI stylists can even create visual representations of the suggested looks, using gen AI to generate images or videos.
Source: Google Cloud, Global, The ROI of Gen AI in Retail and CPG, retail and CPG organizations currently leveraging gen AI in production and reporting productivity improvements, n=177, Feb. 23, 2024–April 5, 2024.
Retail and CPG respondents are seeing significant improvements in productivity — nearly half have seen productivity double2 — and there have been gains, particularly in marketing, where gen AI is driving both creativity and efficiency.
Companies can accelerate time to production by speeding up steps like research and content development.
In fact, 59% of those running gen AI in production use it for sales and marketing.3 Gen AI can provide creative assistance to marketing teams, such as generating customer-centric marketing copy and product descriptions, and curating bespoke images and creative content for campaigns and editorial placements.
Gen AI also allows marketers to respond quickly to current events and capitalize on opportunities, such as Black Friday and Cyber Monday. By infusing AI into marketing strategies, companies can accelerate the time it takes to bring an ad from concept to production by speeding up steps like research and content development.
Source: Google Cloud, Global, The ROI of Gen AI in Retail and CPG, retail and CPG organizations currently leveraging gen AI in production, n=248, Feb. 23, 2024–April 5, 2024.
The retail and CPG industry is navigating a complex landscape of data breaches and security threats. More than half of those surveyed say they’re seeing improvements in their risk posture thanks to AI.4
The message is clear: The time to innovate with gen AI is now.
As gen AI may power more sophisticated scams, retailers need to proactively protect themselves and their customers. In addition to using gen AI to identify fraudulent activity, retailers can also leverage this technology to strengthen their own security systems, building more robust defenses against these evolving threats.
Driving value with gen AI
Realizing gen AI to its fullest will require a strategic approach to ensure seamless integration into how people work, and navigate the data security and privacy considerations. Gen AI has the power to elevate the customer experience, increase employee productivity, and drive revenue growth for retail and CPG companies. Moving forward, the message is clear: The time to innovate with gen AI is now.
