AI-powered personalisation paints the future of retail

Businesses use AI to gain deeper insights into consumer needs and preferences for more customised omnichannel offerings.

PERSONALISED recommendations powered by artificial intelligence (AI) insights are transforming the way businesses approach omnichannel commerce, unlocking new opportunities for growth and innovation.
 
Sibojyoti Chatterjee, general director of KFC Vietnam, said that AI enables businesses to deeply understand consumers, offering tailored product recommendations based on insights.
 
Also, AI-powered algorithms provide predictive analytics and help businesses anticipate demand and optimise stock management.
 
“Most companies are doing omnichannel commerce; they have the fundamentals already in place,” Chatterjee told participants at the recent Retail Asia Forum in Ho Chi Minh City.
 
“What’s different is that as the omnichannel commerce initiatives mature, companies are getting better at it, making transactions more frictionless, and some are implementing AI, which is supercharging all of their initiatives around omnichannel commerce,” he said.
 
Chatterjee also highlighted the evolution of chatbots in conversational commerce, revolutionising customer interactions and marketing messaging across channels.
 
“Optimised marketing messaging to customers is changing not just in whom we reach out to, but which channel do we reach out to them with and at what time of the day?” he said.
 
The business executive also cited how AI unlocks insightful data analysis and drives decision-making beyond human capabilities.

This happens especially when AI is combined with technologies like machine learning, deep learning, Natural Language Processing (NLP), and computer vision, further pushing significant changes.
 
“AI, along with these core technologies and adjoining technologies such as augmented reality, robotics, robotic process automation, all of these come together to sometimes create some very unique experiences,” Chatterjee said.
 
He mentioned, for instance, that Sephora uses AI-powered virtual try-ons for personalised product discovery, whilst Nike optimises its supply chain using real-time data analytics.
 
Starbucks is one that employs AI to personalise customer interactions through its digital app. And then, there is Amazon which leverages AI, machine learning, and robotics for efficient inventory management and dynamic pricing.
 
Of course, these are not without challenges, so Chatterjee also discussed concerns such as biases, privacy issues, and integration with legacy systems with the audience at the Vietnam forum last 14 March.
 
“Sometimes it might not create a very personalised experience for the customer,” Chatterjee said. “The customer might feel lost getting into an app and thinking, ‘Oh my god, I don’t really like what I see in there. It’s not really catering to my taste.’ So, all of these things can happen.”
 
Still, Chatterjee remains optimistic about the future of AI, mentioning exciting developments like Apple’s Apple Vision Pro and the potential of augmented reality in retail.