What Will It Take To Unlock AI’s Potential?
The National Retail Federation (NRF) Big Show 2018 showcased the trends and technologies to watch going into the new year, and AI was a major part of the conversation. EBay, Cosabella and 1-800-FLOWERS.COM are just three of the brands that have gone public with the benefits they have seen from AI-powered solutions. However, as AI’s use expands, data scientists and algorithm developers must incorporate ethical structures into the technology to ensure shoppers have a trustworthy experience.
The RTP editors share what it will take to unlock AI’s potential, as well as what could stand in the way of the technology’s growth.
Debbie Hauss, Editor-in-Chief: I definitely think there’s no stopping AI/machine learning in the future of retail. Retailers and their solution partners are quickly realizing the long-term value of AI in improving 1:1 personalization efforts. Done right, machine learning algorithms can continuously learn, providing more relevant offers and products for shoppers, which in turn will provide better ROI for retailers and brands. Customer service also will get a boost with AI, helping to weed out the basic customer inquiries. What is important for all companies to acknowledge, though, is that they should not plan to completely eliminate human interaction. That will be a quick way to lose brand confidence and loyalty.
Adam Blair, Executive Editor: For AI to reach its optimum potential, retailers are going to need to be crystal clear about who, or rather what, is “speaking” to consumers at any given time: Is it a human being, or an AI-powered chatbot? “This [distinction] should be explicit for creating a trustworthy user experience,” said Francesca Rossi with IBM Research AI, during an NRF 2018 session on AI and ethics. Forrester’s Brendan Witcher gave me a great practical example of the reason why: “There’s a very high risk if someone thinks a person is talking to them, but then the machine says something insensitive — e.g. if someone is traveling for a funeral and the bot tells them to ‘Have a good time.’ If the consumer thinks it’s a person saying that, he or she will be highly offended.” Don’t try to fool consumers into thinking they’re speaking to a human being if they’re not — or you might be the one playing the fool.
Marie Griffin, Managing Editor: If your organization’s core competency is not technology, you will be left behind because machine learning is accelerating software development beyond human capabilities. That is literally the definition of AI. You can’t keep trying to justify legacy systems, regardless of how much they cost or how long you thought they would last. You have to pick vendor partners that are the best of the best and are dedicating all their resources to constant improvement of whatever technologies they offer. You have to choose cloud technologies to take advantage of super-rapid software development —and this is likely a more cost-effective option than systems you once bought and owned. And if you don’t have the intestinal fortitude to do these things, get your company ready for sale or buy a company that has what you need. Don’t fail at a sad, slow pace. Make your move now.
Glenn Taylor, Senior Editor: With mobile used at virtually every point during the shopper journey, one would have to think that AI will truly thrive once retailers fully integrate it into these platforms. That means retailers will have to leverage AI platforms that can collect data from other iOS/Android apps in order to know a consumer’s tendencies beyond shopping — as creepy as that sounds. Of course, the option to “opt-in” is the key component here, and there’s no such thing as too much transparency. Company culture is still going to determine the success of AI on a case-by-case basis. Up to 61% of retailers deploying AI still lack in-house knowledge, while 47% lack a clear implementation plan for the technology, according to a survey from Infosys. If retailers don’t have a proper grasp of the technology they’re deploying — or simply aren’t buying into it — then there will be fewer use cases that can set the bar for how to improve the technology in the long run.
Klaudia Tirico, Features Editor: It’s time people realize that AI is here and here to stay, so you either accept it and excel, or don’t and get left behind. Based on my research, I’ve learned that accepting AI has proven difficult, as humans are afraid they will lose their jobs to robots. I don’t believe that’s the case. For AI to reach optimum potential, retailers, marketers and organizations in general have to realize that AI will allow them to free up time to tackle big new initiatives, instead of having to worry about the routine tasks of their job. Instead of spending hours analyzing data and figuring out what makes customers tick, AI can help retailers deliver greater experiences in a fraction of the time. This, in turn, will make more time available to focus on additional aspects of the business. Retailers such as Amazon, Lowe’s and Cosabella are already leveraging AI in some way, shape or form; it’s time others embrace the machine, or risk losing out.