Retail executives over-confident on AI and its opportunities

Almost all retail executives feel confident in their command of artificial intelligence (AI), however, new research shows they are missing crucial opportunities relating to optimizing inventories and estimating accurate shipping dates. Blue Yonder’s report, ‘Are Retailers Prepared for the AI Era?’ also says 85 percent of executives believe they are extremely or very knowledgeable about AI and have no hesitations about applying AI to their business operations. In fact, 95 percent say they are already using AI technology in at least one application and 96 percent have made further AI adoption a priority going forward.

The report says while executives believe they are very knowledgeable about AI, they lack understanding about the different types of AI, or ways to utilize existing tools. While many retail executives are using AI to enhance supply chain and logistics, the survey found that not many are using it to enhance omni-channel execution.

“Today, there is a proliferation of AI solutions available to retailers, but understanding general technology concepts is not the same thing as knowing which AI enabled product or service is best suited for individual retailing needs,” says Srinivas Pujari, corporate vice-president, Blue Yonder. “Retailers who are innovating with AI will leave their competitors behind, especially those who deploy the most efficient solutions that best meet their customer needs. Retail executives cannot afford to be overconfident in their AI strategy.”