A new global study from the IBM Institute for Business Value, reveals a widening gap between shopper demands and the current retail offering.

The third biennial consumer study, “Revolutionize retail with AI everywhere: Customers won’t wait,” surveyed nearly 20,000 global consumers and reveals a dissatisfaction with retail experiences, with only 9% of consumers surveyed saying they are content with in-store and 14% content with online shopping.  

Yet technology could play an important role in enhancing the overall shopping experience, with over half of the respondents indicating they are eager for AI enhancements like virtual assistants (55%) and AI applications (59%) as they shop. Influenced by inflation, six in ten consumers surveyed also say inflation has impacted how they shop, with 62% saying that price is a top reason they switch stores or brands.

“In the face of rapidly shifting consumer expectations and the stark realities of today’s economic picture for households, the retail sector is presented with an ongoing challenge—and an unprecedented opportunity,” said Luq Niazi, Global Managing Director at IBM. 

“We are seeing that today’s consumers, faced with more choices and channels than ever, are increasingly making their purchasing decisions based on the cost and the quality of experiences that retailers provide. The IBM IBV Consumer 2024 Study underscores an opportunity for retailers to integrate AI and other technologies into both digital and physical shopping experiences to meet these changing consumer demands and their economic challenges. Leveraging advances in AI technologies, retailers can forge ahead into a new era of commerce and fulfilment, leading with innovation to create shopping experiences that are intuitive, unified, personalized and efficient.”

Noteworthy findings from the study include:

• In-Store Experience Lacks Luster: Despite a preference for physical stores by 73% of those surveyed, only 9% are satisfied with the in-store experience. Consumers surveyed want greater variety of products available (37%), more information about products (26%), and faster checkout (26%) in stores. Most consumers surveyed (65%) are supplementing their in-store experience by using mobile apps while shopping — demonstrating a trend toward a digitally integrated in-store experience. 
• Online Shopping Shortcomings: Online retail isn’t immune to criticism; two-thirds of consumers surveyed discover new products via the web, yet many have expressed dissatisfaction with their online shopping journey, citing challenges finding the products they want (36%), not enough information about products (33%), and a cumbersome return process (33%).
• Consumers Desire Digital Integration: Consumers surveyed showed a strong interest in using AI technology to enhance various aspects of their shopping. Most consumers (59%) said they would like to use AI applications as they shop and 4 in 5 consumers who haven’t used the technology for shopping reported an interest in trying it. Personalization and targeted offerings are in demand, with 52% of consumers surveyed interested in receiving information, advertisements, and offerings from stores that are relevant to their specific interests. Yet there remains a stark satisfaction gap for current AI assistant users surveyed. Only about one-third of responding consumers who have used virtual assistants are satisfied with the experience and nearly 20% were so disappointed that they don’t want to use virtual assistants again, signaling a mismatch between current tech offerings and shopper expectations.
• Economic Forces at Play: Economic challenges, particularly inflation, are influencing shopping behaviors. Consumers surveyed are seeking flexible payment options, with 55% desiring more varied payment options and 46% reporting they would like to pay for their purchase in installments. As inflation and economic uncertainty pinch pocketbooks, 62% of consumers surveyed also say price is a top reason they would switch stores or brands.

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UiPath, the enterprise automation software company, announced the top five trends in Artificial Intelligence (AI) and automation that will transform the Indian workforce in 2024. 2023 was the year of AI hype, and 2024 will be the year when we realize the full potential of AI. 

Arun Balasubramanian, Vice President and Managing Director, India and South Asia, UiPath said, “In the realm of digital transformation, the synergy between automation and AI is unlocking unprecedented value for enterprises worldwide. This isn’t merely about scaling up automation; it’s about unleashing the full potential of these technologies to revolutionize how we work. As we navigate the evolving landscape, it’s clear that the future lies in the seamless integration of AI and automation.”

“The future belongs to those who harness the power of AI and automation to navigate complexity, allowing a dynamic collaboration between human ingenuity and robotic efficiency. Navigating through the AI landscape has become more efficient through evolving technologies such as process mining, task mining, and co-pilots. As we pioneer safe AI, we’re shaping a future where enterprises thrive through innovation, efficiency, and the harmonious collaboration of people and machines,” Balasubramanian added.

LLMs, Co-pilots to transform work

According to the UiPath Automation Generation Survey 2023, 91% of Baby Boomer respondents think that automation would help them do their jobs better, while 87% of Generation Z, 86% of Millennial, and 84% of Generation X (84%) respondents feel similarly.

These sentiments would echo through 2024, as enterprise software providers are already integrating Large Language Models (LLMs). One notable application is copilots—virtual desktop assistants that comprehend individuals’ work contexts and tasks, communicating in plain language. Like the best human assistants, these copilots can rapidly learn to auto-complete various activities and proactively enhance workflow efficiency. UiPath, for example, incorporates Autopilot into tools for various users, streamlining tasks like data entry and email management.  With such significant developments, LLMs and Gen AI solutions are all set to reinvent how we work with machines and usher in a new boom in global productivity.

Safe AI becomes a focus of action and innovation

The C-suite will prioritize countering AI risks, emphasizing safe AI to improve the risk/benefit equation. Expect a significant acceleration in AI governance adoption, with enterprise software companies integrating robust AI controls. Technology providers will enhance human-in-the-loop capabilities for improved human review. In 2024, organizations are shifting from aspirational to implementation phases, driven by innovative approaches. The Indian government already emphasizes innovation and is formulating policy frameworks like the National Artificial Intelligence Strategy for responsible AI adoption, highlighting a commitment to transparency and accountability.

The C-suite seizes AI’s value with the help of automation

Today, executives are exhilarated by the potential of AI to drive growth, and innovation, and revolutionize various aspects of work, enhancing productivity in unprecedented ways. In 2024, their primary focus will shift towards translating the potential of AI into tangible returns. Per a Nasscom report, AI adoption is poised to add $500 billion to India’s GDP by 2025. Automation is proving to be a swift enabler of various AI benefits. As companies in 2024 zero in on realizing their AI ambitions, they will increasingly turn to enterprise automation to facilitate the achievement of their objectives.

Process and task mining for real-time visibility 

Until recently, enterprise managers grappled with poor visibility into end-to-end work processes, hindering problem diagnosis and issue resolution. Process intelligence, powered by AI in advanced process, task, and communications mining, has transformed this landscape. Now, organizations can continually monitor and evaluate processes comprehensively, gaining insights and identifying optimal solutions for efficient workflows. Leading innovators are even creating “digital twins” of their operations, providing dynamic real-time visibility, and modeling potential workflow improvements before implementation. This innovation is anticipated to drive increased adoption in 2024 and beyond.

Redefining work by building new relationships with machines

The rise of large language models (LLMs) is expected to significantly impact the future of work, with the potential to automate up to 30% of current tasks by 2030. As LLMs continue to advance, they will likely be applied in various professions, and the workforce will need to adapt to new roles and responsibilities. Key areas of focus for thought leaders, policymakers, and education professionals include learning from professions further along the adoption path, addressing the labor implications of a virtual workforce, and redefining the best skillsets for the future. By 2024, these efforts will begin to reshape the workforce, requiring workers to develop new skills and adapt to new roles, while also addressing the needs and views of employees, employers, unions, governments, and the public at large.

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