Grocery retailers have long made digital a core part of their operating model strategy, but now a new technology topic is hitting store shelves and it is inevitably AI.
According to data from GroceryDoppio, a digital grocery intelligence resource created by Incisiv and Wynshop, the percentage of grocers discussing ChatGPT at senior-level meetings increased from 67% to 83% between February and May.
However, with generative AI in particular being a hot topic, it is unclear how quickly it will be put into action. Only 7% of surveyed grocery executives have actually invested in net-new AI capabilities in 2023. Budget (71%), performance proof (69%), and infrastructure limitations (63%) are seen as the biggest challenges to AI adoption. according to the data. That said, 3 out of 4 of respondents (74%) incorporate AI into technology RFPs.
Kroger CEO Rodney McMullen expects the use of AI technology to enable more sophisticated personalization capabilities.
Kroger has long been at the forefront of leveraging data and analytics, including artificial intelligence, to build better customer and employee experiences. By applying data and her AI-based personalization, she will be able to better understand what really matters to her customers and deliver more targeted and effective experiences.
As customers become more digitally engaged, we find new, more efficient channels to present them with the most relevant products and the right promotions at the right time, regardless of where and how they shop. was born in
As AI advances, we continue to address and constantly evaluate potential use cases across our business, keeping privacy and responsible implementation in mind. We see an opportunity for our customers to further simplify their digital experience and provide more accurate and personalized recommendations.
He added that Kroger puts money and resources where it sits in the company’s mouth.
Our team leverages search algorithms and generative AI to improve replacement accuracy and search results. 84.51 Within Customer Research Team [formerly dunnhumbyUSA] , we have already piloted several large-scale language models to summarize our customer database sets. By applying AI to customer surveys and customer service logs, our team can analyze and classify them in minutes instead of days. This enables businesses to react more quickly and accurately to customer feedback and incorporate that learning into the customer experience.
McMullen concludes:
Data is in our DNA. Our rich history as a technology leader gives us confidence that we will continue to use AI effectively, including the latest innovations. We also believe that robust, accurate, and diverse first-party data is essential to maximizing the impact of innovation, data science, and AI. As a result, Kroger is well positioned to successfully implement these innovations and provide a better experience for its customers and employees.
in the meantime…
AI is also a hot topic at Walmart, and, as the company revealed at a recent investor conference, it is expected to be a transformative force in the next five years alongside automation.
According to Walmart Global CTO and Chief Development Officer Suresh Kumar, the rise of generative AI is huge, but it’s just the latest step in a long road.
I’ve been using ML [Machine Learning] AI has been used throughout systems for a very long time. If you have placed your order online and we would like a smart alternative on your behalf, [of the replacement] It actually comes from ML.
We use natural language in many of our internal applications as well as in our customer facing applications. Today, the majority of customer inquiries, even internationally, are automatically answered by our natural language processing system. In fact, Chile is one of the world leaders. As such, AI is deeply integrated into many of our systems.
However, he acknowledges that the potential of generative AI is very exciting for companies like Walmart, and classifies its impact into two main categories.
One is about the customer experience. We believe these features really accelerate the customer experience in a very meaningful way. This helps us make better choices for our products and helps you achieve your shopping goals. I’ve given some examples before, “I’m looking for a cell phone for my daughter, what’s the best cell phone I’m looking for?” I think generative AI can have a very positive impact on this kind of shopping journey.
Another key area is internally about how employees work, how businesses operate, and how data yields insights. These are all areas where I think the impact will be visible as generative AI becomes more and more mature. We have also already initiated a number of initiatives to incorporate the latest external developments to improve our internal tools and customer experience.
Walmart’s strategy is not just to build its own LLM, but to partner with technology companies to leverage generative AI, he added.
Many fundamental breakthroughs have already happened. Whether it’s OpenAI, Google’s side, or open source, we want to capitalize on every breakthrough that’s happening. But we want to make it unique to Walmart and do it in a way that, retail speaking, works with Walmart data. For things like this, we take the development out and make it work within the Walmart environment in ways that are uniquely beneficial to our employees and customers.
Returning to the grocery store Doppio data, surveyed grocery executives said AI was used to augment (43%), automate (39%), or replace (18%) grocery store staff. I predict it will. From the perspective of Walmart Chief Human Resources Officer Donna Morris, AI can certainly have a transformative impact within the company.
Many of our technology investments have been focused on our customers and, quite frankly, our ability to serve them. And for the most part, much of our technology is aimed at our very large frontline employee base, and that’s how it should be.
But given the nascent opportunities with generative AI, it’s actually changing the way campus office workers work in the same way that we’ve focused on optimizing and getting things done on the front lines. will change, shape and optimize their performance. more effectively and efficiently.
Walmart has a people-led mindset, she added.
In fact, you can empower your employees by enhancing their work through generative AI. I think each feature has great opportunities to really take advantage of. [this]. We’ve been talking about the need for self-service for so long that I think there’s generally confusion from the people’s space point of view. Most people just want to find something for themselves. They don’t want to call anyone. they want to find it. As such, the world of generative AI opens up opportunities for individuals to self-serve.
Just as technology is improving frontline work, I think you’ll see some very exciting things we can do to help our campus office workers work more efficiently. increase.
my view
Interestingly, going back to GroceryDoppio’s data, 82% of respondents said they will need AI adoption to compete in the future, while they plan to spend extra-budgetary money exploring AI solutions this year. Only 13% have Meanwhile, only 11% believe AI will have a significant impact on staffing over the next two years. The revolution may be a little further…
