AI's Long-Term Potential in Retail and CPG

AI's current impact and hype

Retail industry executives explored AI's role, with panelists Chris Walton of Omni Talk, Pierre-Yves Calloc'h from Pernod Ricard, Vipin Gupta of Starbucks India, and Sarah Kunst of Cleo Capital discussing its impact.

AI: Hype vs. Reality

Gupta argued AI is "highly overhyped," citing the gap between potential use cases and actual implementation and the need for organizations to build proper data, infrastructure, and change management foundations. Kunst suggested existing AI applications in areas like supply chain are "under-hyped," while generative AI may be "overhyped." Calloc'h shared Pernod Ricard's AI-powered application that streamlines product catalog management for distributors, emphasizing finding use cases with measurable business impact.

Diverse AI applications in retail and CPG

Computer Vision for operations

Gupta highlighted Starbucks India's use of computer vision to track customer behavior, measuring metrics like queue times. Calloc'h mentioned Pernod Ricard's application of computer vision for safety compliance in production facilities.

Content generation and brand identity

Kunst warned that AI-generated content can sometimes feel "flat." Calloc'h countered that AI tools are enhancing human creativity in marketing.

Optimizing marketing spend

Calloc'h shared how Pernod Ricard leverages AI for marketing mix modeling, enabling more precise budget allocation and improved marketing effectiveness.

Delivering personalized experiences

Gupta detailed Starbucks India's efforts to deliver personalized experiences through AI, including tailored app messages and product recommendations.

Streamlining back office tasks

Calloc'h emphasized AI's potential in streamlining back-office operations, particularly in data normalization and invoice processing, advising a measured implementation approach.

Strategic considerations for AI adoption

Build vs. Buy solutions

Kunst advocated for buying solutions in most cases. Gupta countered that building in-house can be more effective for companies like Starbucks. Calloc'h highlighted open-source solutions as a middle ground.

As AI evolves, retail and CPG companies face both opportunities and challenges. Success will depend on careful strategy, robust infrastructure, and a willingness to experiment and adapt.