AI for Retail

CHAPTER 14The Inefficiencies in Retail Today

To understand the insane impact that AI is going to have on retail, we must first have an honest conversation about the large inefficiencies present today. What are retailers doing wrong today that AI can help with? Where is there juice to squeeze out? And how much is there? What are the most promising use cases of AI in retail? How much of an economic impact will these applications have on the bottom line, the customer experience, and on key environmental and social issues such as food waste, food safety, worker safety, worker satisfaction, cost of living, and more?

I have been to, interviewed, and studied retailers across the globe, from Japan to Australia, to China, to all over Europe, to Mexico, and Brazil. I have met with their top brass, and heard their biggest problems. I have seen close to every retailing method out there. And the surprising answer is that there is not that much difference in the way retailers are run, no matter what continent you are on.

Core Inefficiencies in Retail

After seven years of traveling to meet with the largest retailers in the world, I can make some very broad assertions. No matter what continent you are on, these inefficiencies likely exist for every single retailer.

• Labor
  • Almost every retailer is struggling with labor availability globally;
  • Almost every retailer is struggling with labor cost increases globally;
  • Almost every retailer is struggling with labor compliance and training globally; ...