EY survey unveils Gen AI trends: Indian retail's leap into the future

The Indian retail landscape is on the cusp of a significant transformation driven by Generative Artificial Intelligence (Gen AI). A recent survey conducted by EY unravels key findings, revealing pivotal themes shaping the future of retail in India. We also spoke to Jaspreet Bindra, AI expert and founder of Tech Whisperer Ltd. UK, regarding the same.

Gen AI promises to inject agility and efficiency into every step of the retail chain.The survey reveals that 54% of respondents anticipate cost reduction, and 50% foresee a complete overhaul of the value chain thanks to Gen AI. This could eventually transition to an intelligent inventory system that anticipates demand surges, predictive maintenance that prevents equipment breakdowns before they disrupt sales, and dynamic pricing that reacts to real-time market trends.

"There could be Gen AI bots that could help people search/buy better," says Jaspreet Bindra. "Think hyper-targeted ads that create immersive experiences and even streamline the returns/exchanges process. It can touch every step of the retail value chain, potentially boosting value by $20 billion."

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Gen AI also promises to inject hyper-personalisation into every retail touchpoint.The survey found that 76% of respondents see customer experience as the most impacted facet by Gen AI. A revolution is underway; We can envision AI-powered mirrors that suggest outfits based on your body type, virtual assistants curating shopping lists based on your past purchases and social media musings, and dynamic loyalty programs that evolve with your changing preferences.

3 key insights:

• 71% of retailers plan to adopt Gen AI within the next year:This indicates widespread enthusiasm beyond established brands, extending to smaller businesses like Kirana stores.
• 82% prefer partnerships with external tech providers:This highlights the collaborative approach, allowing smaller players to leverage tech expertise without hefty investments.
• India as a global hub for Gen AI retail solutions:With its IT prowess and vast consumer base, India can become a breeding ground for affordable, accessible Gen AI solutions that empower local retailers.

The adoption of Gen AI in India's retail sector comes with its own set of challenges – skills gaps, data privacy concerns, and the need for robust infrastructure. But the potential rewards are undeniable. By 2025, Gen AI could elevate India's retail sector's profitability by 20%, not just through cost savings but by unlocking a new era of personalised experiences and hyper-local relevance.

"The Indian government and IT minister rightly highlight the need for AI-related skills," Bindra acknowledges. "We need to make India not just literate, but 'AI-literate'. Basic education must include AI skills alongside math and science. This requires a collective effort from the government, corporations, and the entire education system."