What: Generative AI is all across retail now but should not be reduced to ChatGPT only.

Why it is important:  There are many use cases currently in use, but the future is not yet written and there remains many to be built.

Generative AI (GenAI) is revolutionising various industries, including retail, by offering an array of applications and solutions:

1. **Improved Personalisation**: GenAI enables hyper-personalisation by creating content that resonates with individual consumers, based on their behaviour and preferences. It allows for dynamic pricing, targeted products, and personalised incentives.
2. **Visual Search**: GenAI facilitates visual search where customers can find products by simply using an image. For example, Louis Vuitton's mobile app allows users to take photos of a bag and guides them on how to purchase it. GenAI can also analyse social media and fashion magazines to identify emerging trends.
3. **Product Demo Videos**: GenAI assists in creating product demo videos by generating scripting, storyboarding, video content, and voiceovers. It can also enable virtual try-ons and analyse user-created videos for feedback.
4. **Customer Service Enhancement**: GenAI helps in reducing the time-to-resolution for customer service queries by equipping call-centre agents with information and optimised conversation scripts. It can also assess a customer's mood during a call and adapt responses accordingly.
5. **Price Optimization**: By analyzing market data, competitive pricing, and consumer behavior, GenAI enables dynamic pricing strategies that help retailers increase revenue and remain competitive.
6. **Supply Chain Optimisation**: GenAI can streamline supply chains by generating efficient transport plans with optimised routes, minimising expenses, and ensuring timely deliveries. It can adapt to disruptions and manage risks.
7. **Inventory Management**: GenAI transforms inventory management by forecasting demand through analysis of historical sales data, market trends, and customer reviews. This helps in optimizing inventory levels. GenAI can also generate negotiation strategies with suppliers based on past data and market conditions.

However, there are challenges associated with the use of GenAI:

-    **Content Verification**: The source of GenAI-generated content might not always be verifiable, leading to potential plagiarism and legal risks.

-    **Bias and Discrimination**: GenAI systems might inherit biases, which could lead to unfair or discriminatory outcomes.

-    **Data Privacy**: Retailers must handle customer data responsibly to comply with security, data protection, and privacy laws.

It is crucial for retailers to adopt a human-centric approach when employing GenAI, beginning with small-scale applications to understand its functionalities before expanding to high-stakes business operations.

Beyond the hype, what retailers can do with AI