Marketers To Bet Big On Gen AI In 2024

Having facelifted the entire businesses and communication industry, Generative AI (Gen AI) today stands as an indomitable force, whose far-reaching impact is only expected to swell in its potential and presence in the coming years.

Plenty of industry reports support its power- to transform industries, consumer behaviours, marketing strategies and the way everyone in the ecosystem interacts with each other.

A recent report by Netcore Cloud, that analyses the current consumer preferences, needs and trend-setting behaviours, highlights 7 out of 10 CEOs planning to invest in Gen AI this year. "Generative AI is reshaping the way businesses operate and connect with consumers. It's not just about automation; it's about leveraging algorithms to understand and predict consumer behaviour. In the babycare industry, this translates to personalisation at its finest," says Rajesh Vohra, CEO, Artsana India.

The report further mentions that 7 in 10 global consumers eagerly seek personalised experiences, signalling a shift to a hyper-personalised retail landscape. Success hinges on marketers precisely targeting the individual—a 'segment of one'. "The era of one-size-fits-all is giving way to a hyper-personalised marketplace, where algorithms curate recommendations based on individual behaviours and preferences. With several real-world instances around, such as Nike's use of Gen AI to design unique, limited-edition sneakers based on customer preferences, the shift towards hyper-personalised products is clear," tells Akshay Kapoor, Chief Marketing Officer, DLF.

Retails's saga

The retail industry, as we all see, is on the brink of a transformative era with the advent of Gen AI, according to a recent survey conducted by EY. Traditionally, the industry has relied on data to predict consumer behaviour and handle inventories. Now, it's ready to use Gen AI to gain new insights and enhance efficiency throughout the entire retail value chain. 6 per cent of surveyed audience have already implemented Gen AI and a staggering 71 per cent in the retail sector plan to adopt it within the next 12 months, underscoring its perceived value.

"Generative AI can significantly improve decision-making, optimise production, enhance product quality and reduce waste. Additionally, it can help brands innovate, reduce costs and focus on developing new products and systems. This technological shift is significantly reshaping the industry landscape," furthers Arunima Yadav, VP & Head of Marketing, Hindware Bath and Tiles Business.

Current retail investments in AI pegged at US$5 billion, are expected to soar to US$31 billion by 2028. 88 per cent of respondents in the retail sector believe Gen AI will have a medium to high impact on their retail business, states EY.

It further reports that by 2025, Gen AI could potentially elevate the retail sector’s profitability by 20 per cent. The technology does not just reduce overheads but can significantly increase sales through tailored consumer experiences. Even local retailers can provide ‘hyper-local’ personalised shopping experiences by integrating Gen AI tools. This along with its IT prowess, India could emerge as a global nucleus for Gen AI retail solutions.

As we explore the impact of Gen AI on brand-consumer relationships, it's evident that this intersection of technology and consumer culture will redefine marketing in the digital age.