Major retailers, including Walmart, Kroger, Amazon, Target, Ahold Delhaize, and Costco are adopting AI strategies, and overall, 13 percent of grocery executives are willing to allocate non-budgeted funds to AI solution exploration, according to a report from grocery data platform Grocery Doppio.
The research found that 86 percent of the grocers willing to allocate the non-budgeted funds would leverage technology for inventory optimization, 81 percent would seek to improve supply chain operations, and 72 percent would invest in pricing and promotions. The sentiment overall is that AI adoption will soon become a necessity.
Over the year, grocers made many investments in improving their processes with technology like AI-based personalization, shelf stocking, warehouse automation, and robotics. Many of these advancements sought to optimize the experience for the omnichannel shopper.
“In today's omnichannel landscape, where 78 percent of holiday shoppers engage with both digital channels and physical stores, and 69 percent of grocery sales are digitally influenced, AI emerges as a powerful solution,” wrote Grocery Doppio. “By introducing AI tools for employees, such as chatbots and inventory management, and enhancing customer engagement through personalized recommendations and promotions, grocers can address challenges and foster loyalty.”
The report also highlights some of the advancements top companies are implementing. For example:
• Walmart launched an AI-powered assistant tool, “My Assistant,” in August with a virtual shopping assistant slated to come out in the coming weeks;
• Kroger has helped leverage advanced algorithms using customer data to optimize store operations, reduce out-of-stock items, and more;
• Target has invested over $4 billion in technology, using some of the funds to improve its Drive-Up service, recommend products to customers with AI, optimize product assortment planning;
• Amazon has worked with third-party companies to improve generative AI, introduce related features into its online marketplace, and streamline operations. Full Story
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