How Generative AI Transforms Your Operations

Are you looking for that competitive edge your operations need to reach new levels of efficiency? Generative AI for retail represents a strategic lever capable of radically transforming how you manage your business.

Over the past year, we’ve witnessed AI mentions in the retail sector skyrocket. This technology is projected to deliver between $240 billion and $390 billion in economic value for retailers.

Despite its potential, many companies still struggle to scale AI beyond initial pilots. The reason? Challenges like organizational restructuring, concerns about data quality and privacy, resource constraints, and implementation costs.

Retailers that have successfully leveraged generative AI focus on transforming specific domains and achieving effective transitions from pilot programs to large-scale implementation.

Inside out: optimizing your operations

Generative AI for retail can redefine decision-making and boost productivity across every link in your internal value chain. Imagine making faster, better-informed decisions in critical areas like marketing, sales, distribution, and administrative work.

Success stories demonstrating how generative AI is already generating immediate impact are increasingly evident. Amazon, for example, achieved up to 40% increases in advertising click-through rates by implementing AI tools that transform basic product photos into lifestyle images. Similarly, Mercado Libre has revolutionized its software development by reducing engineering task time by up to 60% through AI copilots.

Beyond simplifying daily tasks, AI accelerates strategic decision-making by analyzing multiple factors affecting business performance and automatically generating customized reports with key insights and actionable recommendations. This can translate into up to 5% increases in incremental sales.

How to scale generative AI usage across your organization?

To move from experimentation to large-scale implementation, consider these five imperatives:

1. Identify transformation domains: Map areas where generative AI can create the most significant impact before deciding which use cases to implement.
2. Build generative AI capabilities: Invest in learning programs for technical and non-technical teams.
3. Form a centralized, cross-functional team: Bring together leaders from different areas to align generative AI strategy with the overall vision.
4. Configure scalable architecture: Experiment with different providers and seek an agile architecture that enables rapid scaling.
5. Ensure data quality: Identify unstructured data sources and establish labeling standards to optimize performance.

Translating AI potential into concrete actions

Generative AI in retail is a strategic tool for anyone seeking to maintain competitiveness and optimize processes. Now is the time to build a solid strategy for integrating this technology at the heart of your operations.

At Frogmi, we’ve supported retailers in their digital transformation for over 15 years. Our complete AI ecosystem for retail integrates all the capabilities you need to transform your operations:

• AI-powered image analysis
• 24/7 virtual assistant for resolving operational queries
• Advanced reporting with actionable recommendations
• Real-time sales consultant to empower your in-store teams

Drive your operations toward tangible results. Contact us to discover how to implement AI in your operations and achieve real transformation.