Generative AI is unlocking potential
Our current retail climate is experiencing fast-paced changes, grappling with significant structural challenges. Particularly for organizations operating on thin profit margins, generative AI has proven to be a valuable tool in unlocking potential capital. This newfound wealth is then reinvested into bettering operational procedures. These enterprises recognize that a gradual approach to evolution isn't viable and therefore, generative AI is becoming an integral part of their business strategy.
Restructuring of entire customer value chains
Generative AI has moved beyond a mere proof of concept and is seeing active incorporation into business processes. Its focus is not just on boosting efficiency, but also on stimulating new growth patterns through marketing, sales, and service. These risk-taking pioneers are restructuring their entire customer value chains - from strategic planning and product development to creative design and narrative weaving.
The data supports this progressive approach. One survey analysis shows that these firms are 3.7 times more likely to use generative AI to identify unique and unmet customer needs. By responsibly assimilating mass volumes of customer and market data within an AI framework, they're gaining unique insights. These insights are then used to experiment with and develop new product concepts.
Reduced data proessing time and increased speed of new products and services
These pioneering organizations have shown major consulting firms tangible results. Data processing times are reduced up to 80%, and there's a 40% increase in the speed of launching new products and services. When businesses switch from isolated use-cases to a strategy that prioritizes functionalities along the customer value chain, the customer becomes the heart of the organization.
BBVA Bank - a leading example
One leading example of this strategy in action is BBVA. The bank has invested significantly in cloud, data, and AI in a bid to provide a seamless customer journey. The results have been staggering, with record growth in customer numbers, revenue and efficiency. BBVA is now taking their reinvention one step further, developing a generative AI-driven financial advisor set to revolutionize customer engagement.
The digital foundation is essential in driving customer engagement. It relies on existing customer knowledge and generative AI's ability to illuminate the path to more significant customer experiences. Creating a roadmap detailing how the architecture, technology, security practices, and generative AI infrastructures unite will boost customer engagement.
An opportunity to invest in new areas - speed up reinvention, scale up
The last year has seen much discussion about how generative AI will impact talent in marketing, sales, and service. However, the success of generative AI hinges on its human operators and their application. Automation's gift of time should be seen as an opportunity to invest in new areas. Involving people in the process of reimagining how work is done through generative AI can speed up reinvention and scale it up.
Creative teams are now looking at integrating generative AI workflows into their process. While learning prompt engineering and responsible AI principles, they're also revolutionizing content production and collaboration models.
Broader approach to integrating customer values
Given generative AI's ability to interact with and learn from individuals, accountability and governance are of utmost importance. With only 2% of companies stating they have implemented a responsible AI strategy, there's room to adopt a broader approach. Integrating customer values and ethical considerations such as fairness, trust, equality, and privacy into the company's strategy is essential.
Not just for the C-Suite - span the entire organization
Generative AI needs to span the entire organization, not just specific divisions. While marketing, sales, and service present significant opportunities for generative AI's deployment, leadership needs to come from C-suite with the board's agreement on the vision. Focused reinvention and investment in generative AI can yield dividends. When generative AI applications are interconnected, they can fast-track insights and capabilities across the customer organization, spark innovation, and provide real-time responses to customer needs, thereby stimulating growth.
