According to Ernst & Young (EY) India report, use of Gen AI can boost retail productivity by 35 to 37 per cent within the next five years.
The report titled ‘How much productivity can Generative AI (Gen AI) unlock in India?
The AIdea of India: 2025′ adds that the Gen AI will revolutionise insights-driven pricing, promotions, and customer experiences in India’s burgeoning retail sector.
Retail Sector to Benefit from AI Integration
Generative Artificial Intelligence (Gen AI) is expected to increase retail productivity in India by 35 to 37 percent by 2030. T
The report highlights how Gen AI will improve pricing strategies, promotional activities, and customer interactions.
As businesses adopt AI-driven solutions, the retail sector is set to become more responsive and efficient.
Impact on Procurement, Supply Chain, and Sales
The integration of Gen AI is set to improve procurement, supply chain operations, and quality management.
Retailers using AI-powered insights can better manage inventory, reduce costs, and improve overall efficiency.
Sales functions are also receiving attention, with 52 percent of businesses investing in GenAI-based recommendation engines to improve shopping experiences.
Globally, brands like H&M, Coca-Cola, and Amazon Go are already using AI to refine operations and improve customer interactions.
Growing Adoption Among Indian Businesses
According to Ernst & Young (EY) India report to Indian businesses are increasingly exploring Gen AI applications.
Nearly 48 percent of surveyed companies have started experimenting with AI-driven projects, while 32 percent have either allocated budgets or are planning investments.
Many organizations see Gen AI as a way to manage growing consumer demands, improve efficiency, and drive innovation despite limited resources.
Long-Term Potential and Industry Transformation
Over time, Gen AI is expected to reshape retail operations further. AI-driven market research, personalized marketing, and product recommendations will become more common.
The supply chain could become fully automated, integrating technologies like augmented and virtual reality for better customer experiences.
The report also indicates that AI adoption has helped 56 percent of companies reduce costs, while 44 percent have seen increased revenue and improved customer satisfaction.
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