This recent article from McKinsey has got me thinking.
I love AI and use it daily (not to write this however). But after spending time in multiple European countries, I’m not convinced retailers are ‘missing’ on AI. I think structurally they don’t need it.
They may end up using it unintentionally - a POS system or marketing firm that deploys it to improve results. But direct usage? I have a hard time wrapping my head around that.
Most of the retailers with a physical presence are owned and run by individuals. They like to interact with their customers. They also like to take their time away from work to enjoy life.
Does AI add to that? Or complicate that?
Sure, once you learn a platform and integrate it in for smaller tasks, it can save time. But how do you get committed to doing that? Does a 1-2% EBITA increase warrant it when you work to live (vs US live to work)?
Small businesses are using it now for marketing pieces and the graphic outputs are all very similar and easily recognized at being AI generated. When you’re a power user of Claude (guilty) you begin to recognize the patterns of AI written copy. What’s the next low-hanging fruit small businesses will lean into AI to do? And if it just does ‘ok’ level work, does it make those who avoid it stand out a bit more? Is it used as a time saver to get better work or as a way to check off a box so that task is done?
Your Ikeas and Carrefours may use it for financials and modeling. But local shops in Lucca or Cannes? I think that’s years off, if at all.