Gen-AI to drive 35-37% india's retail productivity in 5 yrs

Read to know how GenAI has led to productivity improvements that are projected at 40% - 45%, with store operations also expected to see efficiency gains of 38% - 40%

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The retail industry in India is on the cusp of a major transformation, driven by the rapid adoption of Generative AI (GenAI). According to EY India's latest report, retail productivity is expected to see a significant boost of 35 to 37 percent over the next five years. This shift is poised to redefine how businesses approach pricing, promotions, supply chain management, and customer engagement. As more organizations integrate GenAI into their operations, retail in India is set to become more agile, efficient, and customercentric. With 48 percent of survey respondents already initiating proofs of concept (POCs) for GenAI in their businesses and 32 percent either planning to invest or having already allocated budgets, the momentum for AI-driven retail transformation is undeniable.

REVOLUTIONIZING RETAIL OPERATIONS WITH GEN-AI

The introduction of GenAI is reshaping the retail landscape in unprecedented ways. From insights-driven pricing strategies to personalized customer experiences, retailers are leveraging AI to enhance decision-making and operational efficiency.

Angshuman Bhattacharya, Partner and National Leader - Consumer Product and Retail Sector at EY-Parthenon highlighted the significance of GenAI's role in India's retail and e-commerce sectors. He notes that insights-driven pricing and promotions, alongside enhanced customer experiences, will be crucial. Productivity improvements are projected at 40 percent to 45 percent in these areas, with store operations also expected to see efficiency gains of 38 percent to 40 percent. However, Bhattacharya emphasizes that while AI opens new doors, retailers must strike a balance between automation and human-centric experiences to ensure sustainable success.

GEN-AI ACROSS THE RETAIL VALUE CHAIN