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In tech news this week, retail is leading the way with generative AI…
The retail industry is poised to surpass other industries in adopting AI
According to Lucidworks' second annual Generative AI Global Benchmark Study, amid sluggish global investment in AI, the retail sector is bucking the trend with robust adoption and significant financial benefits, despite widespread challenges to successfully deploying AI across the industry.
The study was based on a survey of more than 2,500 business leaders across major industries. The goal of the study was to determine how far companies have come in adopting generative AI. The results were a bit disappointing.
“Despite initial hype, slow adoption and low success rates are the norm across most industries, with only 25% of planned projects being fully implemented,” the report authors wrote. But when it comes to retail, the industry “leads other industries in adoption of revenue and growth initiatives and is second in overall AI adoption among all industries,” the report said.
“Retailers are also seeing significant financial benefits from AI, with nearly half already reporting increased revenue and cost savings as a result of their initiatives,” Lucidworks said.
This finding is surprising given that prior to the pandemic, the retail sector tended to lag behind other industries in investing in new technologies like predictive analytics and machine learning.
“In 2023, nearly 50% of retailers have a positive view of AI, one of the highest percentages across industries surveyed. This initial wave of enthusiasm led to one of the most successful adoption rates in 2024,” said Mike Sinoway, CEO of Lucidworks.
Sinoway said retailers are “constantly under pressure to innovate and adopt new technologies to improve customer experience, often leading the way for other industries. Moving forward, it's important for retailers to strike the right balance between reaping the benefits of AI, managing costs and mitigating potential risks.”
The adoption of generative AI also comes with its own set of concerns. According to the report, concerns about AI “will surge across all industries in 2024, with security concerns increasing three-fold, accuracy concerns increasing five-fold, and transparency concerns increasing four-fold.” The researchers concluded that the biggest jump will be around implementation costs, which will jump from 3% in 2023 to 43% this year.
“Retailers are particularly concerned about the cost (63%), but are still rapidly adopting AI and with less delay than other industries,” the report states.
Other findings from the survey include a global investment slowdown: “Global AI spending plans have declined significantly, with only 63% planning to increase (up from 93% last year),” the report authors said, adding that U.S.-based companies “still outperform average, with 69% planning to increase their AI spending.”
In addition to slowing investments, this year's report also noted slow adoption and low success rates. Lucidworks noted that only 25% of planned projects have been fully implemented. “This delay is stalling expected ROI, with 42% of companies yet to realize significant benefits from their generative AI initiatives,” the report said.
Improving the success rate of cross-border e-commerce
As consumers continue to shop at overseas online sites, loyalty and repurchase patterns have become key indicators for retailers and brands. To better understand this and other cross-border e-commerce trends, DHgate Group partnered with the University of Hong Kong to release a white paper titled “The Repurchase Revolution in Cross-Border E-Commerce: Consumer Behavior Insights and Market Opportunities.”
The survey aims to suggest strategies to increase shopper loyalty and repeat purchase rates and “guide the sustainable development of the cross-border e-commerce industry,” the report authors said, adding that the data revealed several challenges to loyalty and repeat purchase behavior.
“These challenges include diversifying user needs, differentiating shopping experiences, and fostering brand loyalty, all of which have become urgent issues that cross-border e-commerce platforms need to address,” the report said.
In response, online wholesale market platform DHgate Group and university experts devised several strategies to increase repeat purchase rates and customer loyalty. The first is to increase site traffic. “The short-term goal is to optimize traffic attraction and distribution mechanisms to support sellers' branding activities and multi-platform sales channels and reduce operational risks,” the authors said, adding that it is also important to provide traffic support to sellers “to address the contradiction between product homogenization and buyers' personalized demand.”
It also proposed localizing warehousing and logistics. “The long-term goal is to encourage distributors to integrate their industrial chains, set up warehouses overseas, and develop their own logistics systems,” the report said. “The overseas warehousing model can improve the efficiency of logistics contract fulfillment, reduce operational costs, and improve overall fulfillment performance.”
The influencer marketing revolution
In a bold move to reshape the creator economy, Word on the Block emerges as a game changer in influencer marketing. Spearheaded by CEO Seth Girsky, the innovative platform is working to streamline the way brands and content creators collaborate on campaigns.
Originally a brick-and-mortar ad network serving local businesses in New York, the shift to remote work during the pandemic prompted Word on the Block to pivot to the digital sphere.
Inspired by the inefficiencies he saw while browsing YouTube during lockdown, Girsky envisioned a more streamlined process that would empower both creators and brands. Word on the Block now plays a central role in connecting brands with the best creators, without the hassle of manual search, negotiation, and campaign management.
This value proposition offers creators opportunity, transparent pricing, and faster payments, effectively turning passion projects into profitable careers.
“Operating in the creator economy reveals two extremes: larger creators are bombarded with ads while smaller creators, whose engagement is often more genuine, get overlooked,” Girsky said. This realization led to the development of platforms that cater to creators of all sizes and optimize their potential to make big money through partnerships with compatible brands.
For brands, managing creator programs and negotiating fair pricing can be a challenge. Word on the Block simplifies this challenge with free tools that allow them to preview pricing models, helping brands maximize their return on investment. “As we continue to refine and introduce more tools, our vision is that both brands and creators will not only earn more, but also be more efficient per dollar invested and more successful,” says Girsky.
Since its launch, Word on the Block has run hundreds of influencer campaigns across a variety of industries, including retail, health and wellness, reaping the rewards for clients such as Morgan & Morgan and BrandsMart.
Highlighting the impact of influencer marketing, Gursky praised brands such as Manscaped and Liquid Death. “These brands may sell simple products, but their creative and emotive approach is a perfect fit for social media,” Gursky said. “By allowing creators to authentically engage with their audiences, this is where the magic of influencer marketing happens.”
Word on the Block continues to enrich and streamline its influencer campaign process, making it a powerful force in the evolving digital marketing landscape.
