Yahoo Finance Is AI friend or foe for British retailers?
The recent buzz around Apple’s announcement on AI has brought the spotlight back on artificial intelligence and its potential to transform industries, particularly retail and consumer technology.
I started with an Amstrad word processor and hand signed letters, so we are now marching into uncharted territories. AI represents the great unknown; both extraordinary opportunity and mind-bogglingly complex challenges.
But does AI represent friend or foe for Britain's retailers? Does it inevitably mean the end of human interaction with hair-tearing customer frustration, or does it mean the perfect customer journey with every wish and want catered for?
Well, we don’t know! And we are feeling a little nervous. Do we go for it and risk a seriously bloody nose, or do we hang back and hope others take the hit?!.
In terms of actually running a business, AI offers immense possibilities for streamlining, automating and making a retail operation more efficient. Data-driven AI can also make possible those personalised shopping experiences that I could only dream of back in the noughties.
By analysing customer data, AI can provide tailored recommendations, helping you choose an outfit or recommend accessories based on your shape, your colouring, or even your mood. Good news all round: happy customers equals more sales.
Customer service - the north star guiding every successful business, retail or otherwise - is another area where AI can make a significant impact. AI-powered assistants can offer 24/7 support. It might be a bit infuriating at times, but with a little more learning (quite a lot actually!), this is going to create some serious benefits.
And employment? Will AI create jobs or decimate them? The answer is nuanced. I can see a situation where good companies (us included, I hope) create more, better jobs, and create companies where the combination of human empathy and humour, combined with raw computing power can truly turbo charge great customer service.
While AI will automate certain tasks, it will also create new opportunities. There will be growing demand for AI specialists, data analysts, and digital marketers. Retail employees will need to adapt, learning new skills to manage and interact with AI tools. It’s about reskilling across every level of business, rather than job displacement.
Rest assured - Traditional retailers are quite happy to adapt to this new technology. We just need to be certain that it is no false dawn. Show us the gold at the end of the rainbow and we will be flocking like bees to the honeypot.
AI offers immense potential for the retail sector. By embracing AI and ensuring our workforce is equipped with the necessary skills, British retailers can thrive in the digital age. The future is not about man versus machine but man with machine, creating a more efficient, personalised, and exciting shopping experience for all.
Bring it on. It is probably about time we had another “Harry Selfridge” moment. Just don’t tell me to rebrand to CT GPT!
Nick Wheeler is founder and chairman of Charles Tyrwhitt
