The Coresight Current

This Week in AI & Retail 

 May 24, 2024 

 A Roundup of Top News and Developments from the Past Week  

The AI (artificial intelligence) industry is developing at a breakneck speed, with a number of new developments happening on a daily basis in retail. In our weekly “This Week in AI & Retail” digest, we track the major developments in AI and retail to make sure you don’t blink and miss them!  

This week, we saw notable announcements emerging from the annual Microsoft Build developers conference in Seattle and VivaTech in Paris, along with a drumbeat of developments within the AI industry and new use cases announced from in-store and online retailers. 

Below, we detail key themes and developments that have emerged this week. 

1. Enhanced Customer Engagement 

• Google’s New AI Features: Google introduced new tools for retailers, including a new profile for e-commerce brands, generative AI (GenAI) features for more effective product imagery, and new immersive ad formats. These developments aim to deepen the connection between shoppers and merchants through enhanced visual brand profiles on Google Search, showcasing detailed product imagery, videos, customer reviews and deals​.
• LVMH’s “The Dream Garden”: At VivaTech, LVMH hosted its Dream Garden pavilion showcasing a host of customer-facing innovations, many of which featured GenAI. Examples included AI-powered conversational experiences at Moët Hennessy, with its AI Sommelier and AI-enabled personalized experiences with Louis Vuitton, Sephora and Lora Piana. This pavilion highlighted online and in-store engagements to create elevated and interactive innovative retail experiences. 

2. Operational Efficiency and Staff Support

• AI in Use by Sainsbury’s: Sainsbury’s is partnering with Microsoft to implement AI tools aimed at streamlining operations, such as shelf replenishment. These tools use real-time data and cameras to guide staff, saving time and allowing them to focus on other priorities, thus increasing overall operational efficiency. .
• Microsoft’s AI-Powered Tools: At the Microsoft Build developer conference, new AI features for the Copilot+ PC lineup were introduced. These features are expected to enhance retail operations significantly, offering advanced tools to improve efficiency and support staff tasks​.

3. Innovations in Retail Experience

• Amazon’s Enhanced Alexa: Amazon is updating Alexa with GenAI to provide more conversational and interactive experiences, and will be charging a monthly subscription fee for the service.  
• Google’s 3D Images in Ads: Google has launched a feature that allows retailers to use 3D images in AI-generated ads. This technology enables consumers to interact with products from different angles before purchasing, which is particularly useful for luxury and high-value items​. 
• LVMH and Alibaba’s Partnership: LVMH and Alibaba are expanding their partnership to boost AI-powered luxury retail experiences in China. This collaboration leverages Alibaba’s cloud and AI technologies to enhance LVMH’s omnichannel presence and elevate the luxury consumption experience

This week, continued advancements in GenAI technology and features are enabling retailers and brands to realize operational efficiencies within their own business, and to enhance the consumer experience both offline and online. New initiatives from retail companies including LVMH, Sainsbury’s, Sephora and others are paving the way to showcase new possibilities for AI-enabled customer experiences.  

Want to read more on GenAI in retail? Check out these reports on the subject from Coresight Research:  

• Generative AI Latest: GenAI Chatbots and Apps Are Ready for Prime Time 
• What Do US Consumers Think About Generative AI? 
• AI Council Summit—Event Insights: Exploring the Transformative Impact of AI 

How Many Consumers Have Prime Memberships?

Over half of US respondents we surveyed in April 2024 had a personal Amazon Prime membership and many others said they had access to Prime via someone else in their household. Coresight Research subscribers can find the latest data points and multiyear trend data in our US Prime Membership Rates chart here. We are seeing sustained resilience for Prime memberships in spite of consumer restraint in the wake of high inflation.

We have long pointed to Prime encouraging cross-category shopping on Amazon.com, strengthening its presence in categories that it was not traditionally associated with, such as grocery.

We recently covered the impact of Prime in our US Retail Loyalty Programs report, which featured additional proprietary consumer data: Maybe unsurprisingly, our survey found Amazon Prime was the retail loyalty/membership program with the greatest number of members. And we will continue to cover Amazon metrics and the impact of Prime membership on shopper behavior in further research reports, including our upcoming yearly Amazon Apparel US Consumer Survey report—our seventh yearly survey-based report on Amazon’s encroachment into fashion retailing. Look out for that report publishing soon.

Last week, Shoptalk 2024 commenced with a flurry of groundbreaking revelations and innovation announcements that are poised to reshape the retail landscape. From AI advancements to beneficial associate applications, the event provided a wealth of insights crucial for retailers aiming to stay ahead. 

A pivotal theme throughout the conference was the transformative potential of AI (artificial intelligence), particularly GenAI (generative AI). Tapestry lauded GenAI as a “game changer,” stating that it was utilizing the technology to develop an associate app that facilitates real-time feedback and swift adjustments based on customer preferences. Throughout the event, many emphasized empathetic AI adoption, with a focus on removing friction and seamlessly integrating emerging technologies into existing operations. 

Walmart’s Me@Walmart app exemplifies this approach; the app has led to increased associate and customer satisfaction through continual refinement based on associate feedback. Meanwhile, associate-enablement technologies—such as COS’s “SmartStore” initiative and Mattress Firm’s sleep-diagnostic tools—empower associates to deliver personalized experiences that resonate with modern consumers, driving engagement and conversion rates. 

Various brands also underscored the importance of building trust and authenticity in an era of conscious consumerism. For instance, PacSun’s focus on Gen Zers and collaborations with platforms such as Roblox highlight the significance of meeting customers where they are and fostering meaningful connections through co-collaboration. 

The rise of retail media networks (RMNs) presents both challenges and opportunities, with Amazon’s journey serving as a guiding example of what retail media can be. Colleen Aubrey, Senior Vice President of Ad Products and Technology at Amazon, stressed the importance of transparency and accuracy in retail media, cautioning that “retail media is not for the faint of heart.” 

As the retail landscape continues to evolve, innovation remains paramount. Whether leveraging AI to enhance efficiency or fostering authentic connections with customers, retailers must embrace change to thrive. The first day of Shoptalk 2024 offered a glimpse into the future of retail, equipping brands with invaluable insights to navigate the digital age successfully. 

Read the full report here: https://coresight.com/research/shoptalk-2024-day-one/

The NRF event, a cornerstone in the retail calendar, plays a pivotal role in shaping the industry’s trajectory for the entire year. The foresight gained from this conference serves as a guiding force, allowing businesses to proactively respond to the ever-evolving dynamics of the retail landscape. 

Our latest report, “NRF 2024: Retail’s Big Show Wrap-Up,” offers a comprehensive overview of the event. Delve into valuable insights provided by industry leaders, covering a range of topics from consumer-centric strategies to the latest advancements in AI and GenAI applications, innovative workforce management solutions, and emerging marketplace opportunities. 

Whether you are a seasoned industry professional or a newcomer, this report provides a wealth of information to keep you abreast of the latest trends and innovations. Gain a competitive edge by leveraging the knowledge shared at NRF 2024 to refine your approach and enhance the overall retail experience. 

For our premium subscribers, the full report is available at: NRF 2024 Wrap-Up: Leveraging Tech to Evolve the Retail Experience and Improve Efficiency. Stay ahead of the curve and make informed decisions in the dynamic world of retail: https://coresight.com/research/nrf-2024-wrap-up-leveraging-tech-to-evolve-the-retail-experience-and-improve-efficiency/

The stage was set at CES 2024 as industry pioneers gathered to unveil the future of retail. Among them, Deborah Weinswig, the CEO and Founder of Coresight Research, stood out, sharing groundbreaking insights into the technological trends that will reshape the retail landscape in 2024.

Joined by visionaries such as David McIntosh of Instacart, Raj Mahtani of Alibaba.com, Cynthia Countouris  of Nvidia, Jason Dailey of Meta and Valeria Vacante of Dentsu, Weinswig delved into the profound impact of artificial intelligence on consumer devices, omnichannel expansion, and more. The discourse embraced a spectrum of innovations, including computer vision, AI-driven personalization through Maestro AI, autonomous delivery systems, AR/VR adoption, sustainable supply chains, retail-as-a-service (RaaS), edge computing, and heightened cybersecurity.

In a rapidly evolving retail landscape, staying ahead is key. The insights shared at CES 2024 serve as a compass for businesses navigating the dynamic shifts in consumer behavior and technological advancements. The need to embrace these innovations becomes apparent, promising not only survival but thriving in the competitive retail sphere.

For a comprehensive recap of the event, including detailed insights and analysis, follow the link to the full report CES 2024: Tech Trends Set To Reshape Retail in 2024. Gain a deeper understanding of the future of retail and equip yourself with the knowledge to navigate the challenges and opportunities that lie ahead.

Additionally, the full deck from the presentation is available here, providing a comprehensive visual representation of the insights presented at CES 2024. Explore the slides for a closer look at the key takeaways and actionable strategies to reshape your approach to retail in 2024.

Embrace the future of retail, embrace innovation, and stay ahead in this ever-evolving landscape. The journey begins with the knowledge shared by industry leaders at CES 2024.

For more on CES 2024, head to their website here.

Pre-conference days at CES 2024 were a whirlwind of innovation: 

• TechTitans are leading with a focus on sustainability, accessibility and mobility. 
• The Abbott VR lounge seamlessly merges healthcare and retail experiences. 
• TVs dazzle with LG’s transparent OLED, TCL’s 98” and Samsung’s MicroLED. 
• Generative everything steals the spotlight. 
• Supply chain innovation, particularly in retail, gains momentum. 
• Microsoft reshapes the AI landscape with the biggest keyboard change in 30 years—an AI button! 

Check out our pre-conference insight report here: https://coresight.com/research/ces-2024-pre-conference-insights-on-ai-health-inclusivity-and-sustainability-a-powerhouse-quartet-of-innovation/