Retail, CPG and Logistics
Wheeling into the future of retail: From the wheel to Gen AI
In the evolving retail landscape, groundbreaking inventions have continually disrupted the industry and enhanced our daily lives. From the invention of the wheel to the latest advancements in Generative Artificial Intelligence (Gen AI), these innovations have profound and far-reaching impacts. The parallels between these two inventions offer intriguing insights into how we can harness their full potential.
The anthropological roots of the wheel
The humble wheel, born over 6000 years ago is a testament to human ingenuity. Its invention is often attributed to an anthropological process of observation, rather than iterative improvement. Early humans observed logs effortlessly rolling across bodies of water and sought to replicate this movement on land. The true breakthrough, however, came with the invention of the axle—a pivotal discovery made through persistent trial and error. By realising that a central shaft through a round object enabled smoother movement, the wheel-and-axle mechanism transformed the way pottery was produced, paving the way for improved containers for food and water.
Despite its revolutionary design, the wheel was not used for transportation. For nearly two millennia, its primary application was as a potter's wheel, subtly enhancing daily life without fully unleashing its logistics potential. This oversight serves as a compelling reminder of how transformative inventions can sometimes go unnoticed by focusing only on use cases that are immediately obvious.
Drawing parallels to Gen AI
Fast forward to present times, and we find ourselves amid another transformative innovation: Generative Artificial Intelligence. Much like the wheel, Gen AI is a progression of existing technologies, albeit with significant advancements in processing capabilities. This technology is underpinned by massive datasets and novel architectures like transformers, which have become game-changers in natural language processing.
In the retail industry, Gen AI's applications are already making waves by reshaping the industry through various applications. It optimises supply chains with predictive analytics, enhances customer experiences with personalised recommendations and aids in product development by analysing market trends and optimising designs. Gen AI empowers marketing and sales with targeted campaigns and dynamic pricing.
Additionally, it powers recommendation engines that suggest products based on browsing and purchase history, curates personalised clothing selections by analysing customer preferences and uses virtual try-on tools to reduce returns and increase customer confidence. Gen AI also predicts trends and adjusts production to align with consumer demand, minimising overproduction and ensuring product availability.
Harness untapped potential
Yet, a lingering question remains: Are we overlooking Gen AI's full potential, much like the wheel's initial non-utilisation in transportation? Could there be use cases that remain untapped, waiting to revolutionise the retail industry further?
As we look to the future, we must ponder whether Gen AI's deployment will evolve in unexpected and far-reaching ways. Will it take us years, or even decades, to fully understand and embrace Gen AI's capabilities in retail? As we continue to explore and innovate, the challenge lies in not only recognising but also harnessing the untapped potential of this remarkable technology.