AI Technologies Already Transforming Grocery Retail According to New Research
Financial Impact of AI to Grocery Industry
Forecast Growth AI Impact Grocery
AI vs Generative AI in Grocery
New research from IHL Group shows AI and Generative AI tools could bring potential $1.9t fiscal impact to the Grocery industry through 2029.
The exponential impact comes when Generative AI is added onto the hard work companies have done to clean, tag and manage their customer, inventory and product data for traditional AI/ML applications.”
NASHVILLE, TENNESSEE, USA, October 3, 2023 /EINPresswire.com/ -- Artificial Intelligence/Machine Learning and Generative are already transforming the grocery industry according to new research from analyst firm IHL Group. In total, the fiscal impact could reach as high as $1.9t for grocers in terms of increased sales, improved margins, and lower operating costs. — Greg Buzek - President IHL Group
"The metamorphosis of the grocery industry is not a distant future concept—it is unfolding before our eyes. Many retailers have been hard at work leveraging AI/ML solutions that have been hidden from consumers but improving efficiencies for several years,” said Greg Buzek, President of IHL Group. “Key components for success include the company’s data and structural readiness to take advantage of the advancements as well scale and free cash flow to invest in the technologies. The real exponential impact comes when Generative AI is added onto the hard work companies have done to clean, tag and manage their customer, inventory, and product data for traditional AI/ML applications.”
The study titled “Charting the AI-Driven Transformation in Grocery” studies the potential financial impact for retailers in operational areas ranging from Sales Growth, Gross Margin improvement, and Sales/General Administrative cost improvement.
Some key highlights include the following:
• Sales Growth Opportunities could generate up to $1.1t in benefits through the end of the decade through personalized promotions, fewer stockouts, improved store efficiencies, and better assortments.
• Gross Margin Improvements could add another $412b through more efficient supplier negotiations, better demand forecasting, improved load management and route management for trucks and reduction of waste through less spoilage.
• Lower Operating Costs could add up to $397b in improved fiscal impact with better customer service, more efficient labor utilization, automation of routine tasks, improved infrastructure management and streamlining administration of payroll, benefits, and more efficient marketing.
Charting the AI-Driven Transformation in Grocery is an independent research study available immediately here at no cost.
About IHL Group
IHL Group is a global research and advisory firm headquartered in Franklin, Tennessee, which provides market analysis and business consulting services for retailers and information technology companies that focus on the retail industry. For more information, see www.ihlservices.com, call 615-591-2955 or e-mail ai@ihlservices.com. Press inquiries, please use press@ihlservices.com or the phone number above.
Gregory Buzek
IHL Group
+1 615-591-2955
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