BackAI to play pivotal role in retail sector growth by 2024: Nasscom
Indian retail sector is poised to double by 2024 to be valued at $1.4 trillionAutomated store checkouts and robotic warehouse management systems could be big bets for retailers
PremiumMUMBAI: Experts believe the retail industry in India is at an inflection point and growth in the sector will be driven by technology, particularly artificial intelligence.
Nasscom on Thursday launched ‘Indian Retail: AI Imperative to Data-Led Disruptive Growth’ report, highlighting the wide adoption of AI by retail enterprises. The report projected three times growth in the e-commerce and organised retail industry by 2024.
According to data from the Indian Brand Equity Foundation (IBEF), the Indian retail sector is poised to double by 2024 to be valued at $1.4 trillion. While retail in India largely unorganised, as much as 85% in 2019, the opportunity for digitalisation is immense with AI set to play a pivotal role especially as the economy looks to recover from the covid-19 pandemic.
Challenges such as broken supply chains and reduced discretionary spend, along with a sudden rise in the demand for contactless deliveries will require digitised and AI-based solutions. These solutions can enable predictive demand forecasting, customer hyper-segmentation, supply visibility and the ability to respond to real-time demand signals to build sustainable and adaptable long-term business models.
A survey conducted among over 500 CXOs working with enterprises, global capability centres, and large-scale startups found that over 60% of them believed that will witness AI-led disruption over the next three years and thus there should be a dedicated budget and strategy for AI initiatives. A majority of the enterprises who have implemented AI solutions are not entirely satisfied and believe that reskilling is the key to drive more effective solutions.
In the quick-win use cases that have proven successful in business impact, enterprises can prioritise on AI-driven customer service chat bots, counterfeit detection and dynamic pricing tools. Automated store checkouts and robotic warehouse management systems could be big bets for retailers, having high business impact but also requiring higher implementation effort.
In other strategies, product planning and development, delivery agent assistance and identifying deals and discounts for the market can prove to be beneficial.
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