2024-01-24 22:01:38
NVIDIA research reveals that AI drives revenue and reduces costs in the retail sector
98% of retailers plan to invest in generative AI in the next 18 months, according to recent research “State of AI in Retail and CPG” carried out by NVIDIA. The data places the retail sector as one of the fastest to adopt this technology to increase productivity, AI boosts revenue and can transform customer experiences and improve efficiency.
Initial implementations in the retail industry include personalized shopping advisors and adaptive advertising, with retailers initially testing out-of-the-box models such as OpenAI’s GPT-4. But many are now realizing the value in developing custom models trained on their proprietary data to achieve brand-friendly tone and personalized results in a scalable and cost-effective way.
From personalized product recommendations to marketing content creation, generative AI enhances the customer experience and optimizes operations
Before building them, companies must first consider a variety of questions: whether to opt for an open source, closed source or enterprise model; how you plan to train and deploy the models; how to host them; and, most importantly, how to ensure that future innovations and new products can be easily incorporated into them.
New offers, such as NVIDIA AI Foundations, a curated collection of enterprise-optimized foundational models from NVIDIA and leading open source pre-trained models, are providing retail businesses with the tools they need to create their custom models. With NVIDIA NeMo, an end-to-end platform for developing large language models (LLMs), retailers can customize and deploy their models at scale using the latest state-of-the-art techniques.
Generative AI use cases
Multimodal models lead the new frontier in the generative AI landscape. They are capable of processing, understanding and generating content and images from various sources such as text, image, video and 3D rendered assets.
This allows retailers to create compelling images or videos for a brand’s marketing and advertising campaigns using just a few lines of text prompts. Additionally, they can be used to deliver personalized shopping experiences with on-site product imaging and try-on results. Another use case is in product description generation, where generative AI can generate detailed e-commerce product descriptions that include product attributes, using meta tags to significantly improve SEO.
Many retailers are testing generative AI first with in-house implementations. For example, some are increasing the productivity of their engineering teams with AI-powered computer code generators that can write optimized lines of code for indicated results. Others are using custom templates to generate marketing copy and promotions for various audience segments, increasing click-through rates for conversions. Meanwhile, chatbots and translators are helping employees perform their daily tasks more efficiently where AI drives revenue.
To enhance customer experiences, retailers are even deploying shopping advisors powered by generative AI that can offer personalized product recommendations in customer-tailored conversational styles and display images of recommended products. You can even display these products if shoppers want to see the recommended product, for example, in their home by uploading an image of a room. Another use case is a multilingual customer service chatbot capable of responding to simple customer queries and routing more complex ones to human agents for improved, more efficient service.
“In line with the numerous benefits provided by the use of technology in the retail sector, the research also reveals that, for 69% of the companies interviewed, AI directly contributed to the increase in their annual revenues. Additionally, it was found that 72% of retailers that incorporated AI into their operations experienced a significant reduction in operational costs. These results show that the adoption of specialized technologies not only promotes efficiency, but also results in tangible positive impacts for the retail sector as a whole”, adds Marcio Aguiar, director of NVIDIA’s Enterprise division for Latin America.
About NVIDIA
Since its founding in 1993, NVIDIA (NASDAQ: NVDA) has been a pioneer in accelerated computing. The company’s invention of the GPU in 1999 spurred the growth of the PC gaming market, redefined computer graphics, ushered in the era of modern AI, and has helped industrial digitization across markets. NVIDIA is now a full-stack computing company with data center-scale solutions that are disrupting the industry.
1706135408
#drives #revenue #NVIDIA #research #reveals
