Mark Collins, our our Retail & Consumer Goods Principal, is seeing at firsthand the ways in which AI is shaking up how retailers operate. With the further development of AI in retail, there will be new opportunities for innovation and efficiency across the space. It’s an exciting time to get involved – but what are businesses in the retail sector using artificial intelligence for?
You heard it here first, guys: AI is a hot topic.
I know, I know – since OpenAI launched ChatGPT almost two years ago, it feels like barely a week goes by without a new story about artificial intelligence. The impact on the job market has been seismic, with organisations across industries investing heavily in AI to boost efficiency and innovation.
The retail and consumer goods sector is no different. In fact, it’s a prime candidate for an AI-driven shake-up. From space optimisation and logistics to warehousing, fraud detection, and even marketing, there is so much potential for artificial intelligence to completely revolutionise how organisations in the space work. This process is already well underway, and what I’m seeing and hearing among my network bears this out.
Ever since Ocado began licensing their automated solutions to other brands, we’ve seen other organisations in the retail and consumer goods space looking to come up with new formats to innovate and drive results. More and more, companies have been approaching us hoping to find the talent with the skills and experience to deliver their AI vision – they know that this topic is only getting bigger and not going away. But do you need hard programming skills to make it in this field as a candidate? Not necessarily.
Recently, I’ve been working with a major national retailer who are building out their own AI transformation team of around 10 people. Increasingly, I’ve seen smart strategy consultants moving from advisory to implementation roles – though of course, people who’ve had early involvement with AI are a major plus for hirers. The kind of candidates they’re looking for would ideally have a background in consultancy and/or analytics (with a passion for all things AI too), as well as people moving from AI backgrounds looking for new challenges.
So, what can retail talent transforming AI offerings in the sector expect to work on?
Customer experience
If you’ve never received a targeted ad, you must be in a tiny minority. They’re practically a fact of life now, with retailers keen to do all they can to study and anticipate their shoppers’ habits. Now, by analysing enormous amounts of data both in-store and online, AI algorithms can predict customer preferences, as well as recommend new purchases and deliver bespoke marketing messages and campaigns. It can even suggest outfits for you! Furthermore, AI-driven chatbots and virtual assistants provide round-the-clock support to guide shoppers through the buying journey, answer queries, and send personalised product suggestions.
As such, customer experience roles that utilise AI in the retail sector could suit individuals with a background in digital and/or data analytics.
Inventory management
Keeping track of supplies is crucial in retail, especially for businesses such as supermarkets that operate on a just-in-time basis. AI can play a revolutionary role in optimising inventory management, with machine learning algorithms able to forecast demand through data analysis, market trends, and even external considerations like weather or the economy. This can help retailers enhance their supply management, improving sustainability and efficiency by reducing overstock while ensuring the right items are available at the right time.
If you have a background in a sector like logistics, and are interested in the possibilities that retail’s adoption of AI offers, then working in an inventory management role could be for you.
Supply chains
Supply chain management is a notoriously fraught business, so anything that can help regulate it is welcome news to retailers. AI can maximise efficiency and logistics here, while predicting potential disruptions and improving demand forecasting. With enhanced analytics, businesses across retail and consumer goods can optimise their delivery routes and cut back on both shipping time and costs. AI can also provide automated solutions for warehousing, further improving dynamism in the supply chain.
Supply chain management is another area that would be suitable for candidates with experience working with logistics.
Dynamic pricing
Analysing market conditions, competitor pricing, and customer behaviour with AI allows retailers to put in dynamic pricing – and in real time, to boot! This can help to maximise revenue while and price points.
Do you have a finance background and/or training? If you’re interested in a career change, you could do worse than consider the retail and consumer goods sector. Finance is the name of the game, after all!
Fraud detection
Sadly, online scams are all too common, but now AI programmes can examine transaction data in real time to weed out suspicious activity and transactions. Learning patterns of normal and suspect behaviour means AI systems continuously boost their accuracy and help customers keep their online shopping secure.
Cybersecurity skills are in demand across a number of industries these days – so if you’re a professional in this area and are up for a new challenge, why not consider retail?
In-store innovation
It’s not just online shopping that AI has shaken up: it’s transforming bricks-and-mortar retail as well. Organisations are increasingly turning to AI-powered software, like facial recognition, smart shelves, and augmented reality (AR) to make the in-store shopping experience as seamless as possible. This, in turn, affects how retailers plan their shop layouts. With up-to-the-minute analysis of footfall from their AI programmes, teams can optimise store design and even offer personalised promotions to shoppers as they browse the shelves.
Retailers are keen to identify individuals with the vision and skills to drive in-store innovation. That might mean someone with a strong background in digital – but why limit yourself?
AI is here to stay – and with it come opportunities
AI has fast become an essential tool for retailers looking to stay competitive and analyse customer behaviour, business operations, and more. As such, if you’re an organisation – or, indeed, a candidate – working in this space, you risk being left behind if you haven’t already familiarised yourself with the latest AI trends. As programmes continue to advance and become more sophisticated, the influence of AI and machine learning looks set only to grow. The pace of technological change in today’s world can be hard to keep up with sometimes – but the good news is that with the further development of AI in retail, there will be new opportunities for innovation and efficiency across the space. It’s an exciting time to get involved!
Indeed, the sector is always growing, and candidates who want to branch out into an AI role in the retail space should know that companies are not looking for experts so much as people who are inquisitive and passionate. Most of all, you’ll need an analytical mindset and to be willing and able to really dive into data; you can always adapt afterwards. Given the busy lives we all lead these days, high street retailers are bringing in AI to improve customer experience, so having demonstrable passion for the field – not to mention a desire to make automation a better place – will be key things hirers will look for.
I would urge any retail professionals curious about breaking into this growing field – or organisations wondering how best to harness the power of AI to drive results – to get in touch with me for advice. I’m always happy to lend an ear!