Generative AI
The late 20th and early 21st century were marked by monumental technological changes, in particular the advent of the Internet and the widespread use of mobile phones. These developments fundamentally changed communication, access to information, and the perception of the world. As we move into the third decade of the 21st century, generative AI (GenKI) is emerging as the next technological heavyweight. Recent data from Google Cloud show: 82% of organizations believe that GenKI will transform their industries.
Within the retail sector, the effects are already clearly visible. Companies aren't just integrating AI out of curiosity, they're using it to reshape operations and customer experiences. What is important is that even as technologies continue to develop, the fundamental principles of every company remain the same. In retail, although the fundamental value creation remains unchanged, the methods for manifesting and reinforcing this value are changing. Generative AI can generate a decisive competitive advantage when used strategically.
What distinguishes GenKI from previous stages of AI evolution? Essentially, it is about accessibility and applicability. GenKI interacts in everyday language to perform cognitive tasks that were previously reserved for humans.
Industry leaders are already using GenKI to address current challenges. Findings from McKinsey underline that GenKI's greatest value is focused on customer operations, marketing, software development and research & development, which highlights its transformative potential in various sectors.
The retail world is not only changing, it is rapidly gaining momentum. With modern buyers becoming increasingly demanding, retailers are faced with a puzzle: How do you stay relevant? One key to this is GenKI.
Some of the most well-known global brands are using the transformative capabilities of generative AI to reshape their customer interactions.
For example:
The use of generative AI in retail is growing, with its ability to automate tasks, scale critical work, and gain insights from consumer data. It helps in various areas in retail, such as virtual photo shoots, 3D product catalogs, customer service support, e-commerce product descriptions, personalized marketing content, virtual fashion design, and more. This technology, as illustrated by the examples above, is not just a tool but a catalyst that drives retail brands to a more digitally integrated, customer-focused and efficient operating model.
Ideally, management would recognize generative AI as a transformative force and take the lead, stressing the importance of appropriate technology, data, talent, and an effective operating model.
The essential capabilities for GenAI aren't much different from traditional machine learning, but they come with their own challenges. These challenges include ensuring that infrastructure is agile enough to keep pace with rapid innovations in the area. It is also critical to process data in a scalable way. Given the early stage of GenAI, finding skilled talent can be difficult, but it's critical to maximizing the technology's potential. It is also important to translate legal regulations into a comprehensive governance framework. A possible roadmap could be outlined as follows:
With the rapid development of technological advances such as generative AI, it is a challenge to stay up to date. Perelyn, as a trusted retail partner, equips companies with the necessary tools, policies, and responsible governance to navigate this transformative era. Through generative AI, retailers can streamline product integration, classification, search optimization, and advertising efforts and provide customers with tailored experiences. With simple text requirements, professionals can easily create detailed product information for new item codes, match them with pre-defined product structures, and produce compelling marketing content, images, videos, and even soundtracks to boost sales.
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