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.
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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.
