Among AI-adopting retailers, 46% are using it to improve operations; 40.8% plan to within 3 months
New figures released this month by the Office for National Statistics (ONS) reveal that the AI revolution is already well underway in retail. The latest Business Insights survey reveals that, while currently 30% of retailers say they have not attempted to use AI, of those businesses that do use it, a significant 46% say they have adopted it to improve their business operations. Furthermore, 40.8% of companies not already using AI for this purpose say they will be employing the technology to improve their business operations within the next three months.
The home delivery expert Parcelhero has just released its influential AI business report, ‘Putting the AI in Supply ChAIns.’ Parcelhero says it is no surprise retail is following hot on the heels of supply chain, logistics and manufacturing businesses in embracing AI. It says this new survey reveals the key areas where retailers plan to exploit AI’s capabilities, and where it may impact jobs in the future.
Parcelhero’s head of consumer research, David Jinks MILT, says: ‘The latest ONS Business Insights survey reveals that the retail sector has taken the leap and is now as fully engaged in the AI revolution as the transport & storage and manufacturing sectors.
‘As well as using AI to improve their business operations, 25.4% of retailers that are already using some form of artificial intelligence are using it to provide, or personalise, products or services to customers, and a further 21.9% plan to do so within the next three months. Additionally, 15.1% are using it to explore new markets and 12% to develop new products.
‘One of the biggest questions facing retailers is whether to develop their own AI technologies in-house, or use an off-the-shelf solution. Only 5.9% of retailers now using AI have developed their own solutions, compared to, for example, 14.9% of manufacturers. By far the most popular AI investment choice is to purchase external software or ready-to-use solutions, such as SaaS programmes, for areas of their business such as fulfilment. In all, 41.3% of retailers have chosen this option. However, even more retailers (53.6% of those who are currently using some form of AI solution) are using free-to-use software.
‘Of course, one of the biggest questions surrounding AI in retail is “will it take people’s jobs?” The answer to that question is more reassuring than some headlines would have us believe. Just 10.8% of retailers that have adopted AI say they are using the technology to automate or replace roles, while 47.6% say there is no change in the number of people they employ because of AI. A further 14.2% say they are unsure if AI has had any impact on their overall workforce headcount.
‘Furthermore, of those companies planning to introduce artificial intelligence technologies within the next three months, just 7.7% say they will be automating or replacing roles, 57.8% expect AI to have no effect on their headcount, and 4.6% expect introducing new AI technologies will actually increase their headcount. Wisely, 31.7% of companies planning to adopt AI solutions within the next three months also plan to be training or retraining existing staff.
‘The ONS survey comes after Parcelhero’s own adoption of new AI features this year. Parcelhero’s new AI-powered tracking technology delivers accuracy and speed. If a shipment requires attention, such as a customs delay, the system notifies the sender immediately and provides built-in smart solutions to solve the issue before it escalates. Additionally, Parcelhero’s new AI-powered chatbot, which has been dubbed “AI Hero,” acts as the first point of contact for customer enquiries. It provides instant responses to common queries, helping customers resolve most issues within seconds.
‘With so many transport & storage firms planning to adopt AI in the coming months, Parcelhero is well-positioned to help them do so through a range of new SaaS business services. Parcelhero will shortly be introducing Parcelhero Pro, Parcelhero Pro Scale and ParcelVision. The result will be a unified shipping platform that helps businesses automate, scale and control their delivery operations with confidence.
‘The question is no longer whether retailers should adopt AI. It has already arrived. The retailers that will lead their industries by 2030 are those investing in data quality, digital infrastructure and workforce capability today. The question is how quickly and how well companies respond. For many, the clock is already running.’
You can read Parcelhero’s new report on the impact of AI on retail supply chains at: https://www.parcelhero.com/en-gb/resources/ebooks/putting-the-ai-into-supply-chains-industry-report