Avanade, a global expert in the Microsoft ecosystem, unveiled game-changing AI innovations for retail at the National Retail Federation (NRF) 2024 event in New York this past weekend. The company also revealed study results indicating that nearly 90% of retailers believe their customers are ready for AI-driven experiences and operations. However, most of these retailers face the challenge of implementing strategic measures to support frontline workers and generate meaningful insights through AI.
In its AI Readiness Report, Avanade reported that 98% of global retail and consumer goods organizations believe AI could drive up to 20% annual revenue growth. income over the next 18 to 24 months. However, the report also warns of the risk of leaving money on the table due to a lack of preparation for the AI era.
While Microsoft’s new retail AI solutions are expected to address many of the industry’s challenges, Avanade’s study highlighted significant barriers to AI adoption in retail , particularly the lack of responsible AI guidelines and insufficient employee training. Nearly 90% of retailers have recognized the transformative potential of their data when used with AI, making data and analytics platforms their top investment priority for 2024.
Microsoft’s new AI solutions were warmly received by retailers at the event, setting a new benchmark for generative AI and industry-specific data capabilities. These include a Copilot model for in-store operations and personalized shopping, both on Azure OpenAI Service and retail data solutions in Microsoft Fabric.
The study also showed that while most retailers are confident in their ability to harness the benefits of AI faster than their competitors, only half have taken strategic steps to manage human resources , workforce planning and training. This lack of preparation could limit operational effectiveness when scaling up the adoption of generative AI technologies. Additionally, even though retailers believe their customers are ready for AI, almost all industry leaders agree that significant support and substantial effort would be needed to train employees to use generative AI tools .
Avanade’s report also revealed a worrying governance gap, with only half of retailers implementing a comprehensive set of policies and guidelines to ensure responsible use of AI. This requires a robust and scalable governance framework, given growing consumer concerns around the use of AI, the responsibility to use AI ethically, and the potential repercussions of a misstep.
At the NRF 2024 event, Avanade not only shared these and other AI readiness insights, but also showcased an innovative range of AI retail demonstrations that are expected to redefine retail future of retail. Highlights of these demonstrations included AI-powered generative shopping experiences, smart devices and AI video analytics to power store operations, AI-powered solutions for in-store employees, a platform -AI-infused intelligent commerce form enabling transactions anywhere and proprietary generative AI. retail data platform.
Corine Vives, Global Head of Retail and Consumer Goods at Avanade, said: “With these solutions, Microsoft is delivering something truly bold and new: AI capabilities purpose-built to address specific problems. of the sector. If retailers think customers are demanding AI, they “
Corinna Reeves, Regional Product Industry Manager and Integrated GTM Manager at Avanade Australia, added: “AI holds transformative potential for Australian retailers, including the opportunity to leverage the power of AI to deliver exceptional customer experiences and drive business growth. Strengthening their AI capabilities will also help retailers address challenges such as governance gaps, employee training and evolving customer expectations.
