INTERVIEW: Embracing AI in Retail
“Great retailers continually innovate to serve their customers. That builds brand loyalty and, of course, drives revenue. And AI will be a critical part of that, now and into the future.”
- Dave Sutton
That was the resonating message from Dave Sutton, the Managing Partner at Blue Rhino Capital and a leading expert in AI and Transformational Marketing, during his “Speaker Series” discussion at Miller Zell on Nov. 2. Below are a few of the key topics that were addressed during the session - you can check out the full interview by clicking the button:
How Should Retailers Think About AI For Their Business?
“We’re on the precipice of yet another transformational moment in time for both business and society... much like what we witnessed with the Internet.”
- Dave Sutton
Sutton chatted with Miller Zell SVP Tina Chadwick about creating a roadmap for retailers by exploring many of the diverse uses for AI and Machine Learning (ML), including personalized customer engagement, predictive inventory management, real-time customer insights, and promotions, interactive shopping experiences, and even AI as a store layout collaborator.
AI is often greeted with fear — it will replace humans! Or cynicism — whatever happened to the Metaverse replacing real life? While these reactions are understandable to a degree, Sutton’s main focus throughout was how businesses should seek strategic paths to integrate AI into the processes of human work.
AI doesn’t become the boss. It becomes a co-worker with diverse skills: from data analysis to customer service to in-store navigation and checkout.
Where Can Retailers “Dip Their Toe-in” with AI?
“It’s a great way to automate mundane tasks, and it’s a great way to make better decisions, there are massive productivity opportunities here.”
- Dave Sutton
Personal productivity is a good starting point, such as using AI for writing and communication tasks or social media integration, both tracking and generative. AI can be taught natural language and to speak in your “brand voice” with empathy. It also can considerably bolster your efforts to reach out to targeted customers with a much higher degree of efficiency than traditional media buyers.
AI can provide solutions, but humans need to ask the right questions and then test, implement, and advance those solutions. Sutton believes that retailers beginning their AI journey should start by using it to augment strengths rather than hide weaknesses. It’s critical to avoid potential pitfalls, such as being inauthentic, impersonal, or too aggressive, particularly with personal data.
How Can It Go Wrong With AI?
“AI is not a silver bullet, it’s not going to solve world hunger. It’s not going to solve problems that you’ve always had.”
- Dave Sutton
Many retail pundits speak of a “seamless offline and online integration” — omnichannel — without providing purposeful insights into developing that frictionless shopping path. AI won’t simply show up and solve longstanding issues or a lack of customer connection.
Sutton started his discussion by recalling how the last major technological disruption — the Internet — was originally predicted to significantly reduce or even eliminate the need for brick-and-mortar stores and human interaction. That proved incorrect, and he believes that AI won’t replace the in-store customer experience. It will augment it.
“I’m an optimist,” Sutton said. “I believe there’s more upside and opportunity for retailers to return to that great ‘Main Street’ retail experience we remember from the time before the Internet.”
You can download the slideshow by clicking the button below. Plus, don’t miss the interactive Q&A session with the live audience when Dave went deeper into answering several interesting questions from retailers:
