Generative AI: Using artificial intelligence to make human impact.

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Beyond Product Recommendations:
How Retailers Can Increase Profits
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 with Generative AI
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Our experts summarize the state of generative artificial
intelligence in retail in 2024, including use cases
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across customer experience, supply chain and back-
end e-commerce.
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   

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In this article:

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What is generative AI? Generative AI is a type of
artificial intelligence model that can be trained to create

Careers new content based on a sample data set. The most

advanced chat-based models, like ChatGPT’s GPT-4,
can effectively mimic human conversation.
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How can AI be used in retail? Retailers can integrate

generative AI to drive down costs in three main areas:

 customer experience, supply chain and back-end e- DBT GPT ™
commerce.

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Which retail brands are using generative AI? Retail
marketplaces like Walmart, Amazon and eBay have
What We Do
already implemented the technology for employee
efficiency, customer experience and business capability
How We Do It building.

What are the drawbacks? Early-stage adopters need to

Why We Do It
address the technology’s flaws, risks and limitations

through focused experimentation to avoid potential

DBT GPT ™ disillusionment and consumer backlash.

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How is AI going to change the retail industry? Data

strategy, a prerequisite for generative AI

Careers implementation, will become the greatest differentiator

for e-commerce players in the next decade.

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Generative artificial intelligence (AI) has the power to completely

 transform retail experiences, from the automated creation of online DBT GPT ™
storefronts to personalized customer shopping journeys. But is now the
time for retailers to embrace the nascent technology?
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That’s the question that the retail industry is grappling with after recent
What We Do advances in the area of generative AI or an artificial intelligence

approach that can generate new content such as images, videos,

audio, text and code that did not exist before.
How We Do It
Advanced generative AI systems could optimize any function within the

retail industry through conversational and creative abilities, including:

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- Customer service

DBT GPT ™ - E-commerce transactions

About Us - Marketing creative

- Website navigation

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- And much more

According to a global consumer survey, consumers are not only open

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to using generative AI tools themselves to improve their e-commerce

shopping experiences, but they’re excited about them.

 DBT GPT ™
Are Consumers Ready for Generative AI?

Contact Us Publicis Sapient conducted a survey of

consumers in seven countries to see how

What We Do they viewed generative AI, and how
brands can harness the new technology for

the best possible return on investment with

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customer experience.

Access the results

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87%

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of shoppers that have used a generative AI tool are excited about something generative AI will
bring to their shopping experience

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 of shoppers are excited about generative AI’s ability to improve real-time price comparison and
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deal alerts, as well as overall online search results

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What We Do 25%

of shoppers would use a virtual generative AI shopping assistant if it were available for online
shopping
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Why We Do It
40%

DBT GPT ™ of shoppers that have used a generative AI tool already say the same

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However, integrating conversational AI into workflows and customer

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journeys presents a steep learning curve for employees, customers and

brands alike. The flaws and risks of the emerging technology, including
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inherent biases, lack of consumer trust and factual inaccuracies, will

require time and effort from retailers to combat.

 DBT GPT ™

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“How can we use a technology like
What We Do this to catapult businesses into the
next area of growth and drive out
How We Do It inefficiencies and costs? And how can
we do this ethically?”
Why We Do It
Sudip Mazumder , SVP and Retail Industry Lead

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We asked Publicis Sapient retail and AI experts where retailers can

integrate the technology right now and what leaders need to know
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about its capabilities and limitations.

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What generative AI is—and what it isn’t
 Generative AI is a broad term used to describe artificial intelligence DBT GPT ™
models that can generate new data samples that are similar to training

data. Open source models like GPT-4 and Google’s Bard can write
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poetry or informational articles, create trip itineraries, give life advice,

take tests and answer any prompt or statement you throw at it, utilizing
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data sets as large as the entire internet as a source.

Despite the initial breakthrough of ChatGPT’s large language model,

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the power of generative AI goes far beyond chatbots. Advanced

generative AI models have the power to create infinite, contextualized

Why We Do It content of any format. Studies show that humans already can’t tell the

difference between text, code and images created by artificial

intelligence and content created by people.
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Generative AI uses probability, not human-like reasoning
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However, generative AI systems like GPT-4, the model used to create
the ChatGPT application, don’t generate text based on logical
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reasoning or human intelligence. They’re simply generating the most
likely “correct” responses based on the context defined by the
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available data set, i.e., the logical next step in the sequence.

For example, if a retailer used AI to create a series of personalized

advertisements across different customer demographics, without further
 programming, the generative language model would simply use a DBT GPT ™
probability distribution to predict what should come next based on the
prompt and generate a plausible-looking advertisement.
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 DBT GPT ™
While this content is a bit generic, generative AI’s advancing
conversational ability is creating new solutions for simple interactions.

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While these limitations prevent generative AI from running marketing
departments anytime soon, there are still several retail applications that
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are ripe for the most impressive aspect of the technology: thepower of

human-like prompt continuation.

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How retailers can take advantage of

Why We Do It
generative AI

DBT GPT ™ Conversational commerce: generative AI and the customer experience

About Us Generative AI is quickly changing the way customers interact with

retailers online.

Careers “The modality of online shopping interactions, and e-commerce

interfaces themselves, may soon change,” says Sara Alloy, head of

retail experience at Publicis Sapient. “You’re going to see a much
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better quality of search with more tailoring, customization and
 efficiency.” DBT GPT ™

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How We Do It Conversational product search

While most shoppers can use search bars to find the products they’re
Why We Do It looking for, conversational commerce (powered by generative AI)

accelerates the search process, potentially increasing conversion rates

and average basket sizes for retailers.
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Brands are implementing A/B tests of conversational product search
About Us bars to assist customers in finding specific products more efficiently, like

searching for all of the ingredients in one recipe through a question or

Careers asking about each item of clothing in a full outfit.

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 DBT GPT ™
Chatbot support

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Customer service chatbots powered by generative AI can reduce

staffing needs and support agents by providing complex and engaging

What We Do responses. While many chatbots currently have only 15 or 20 decision

trees, advanced generative models open the potential for chatbots with

infinite paths of conversation.

How We Do It
Retailers also have the opportunity to play around with conversational

styles that match their brand and personalize interactions for customers,
Why We Do It
changing the negative perception of automated chatbot features.

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Cross-selling and upselling

Contact Us Finally, generative AI can provide more intelligent shopping suggestions

based on search history and other customer demographic data. While

retailers currently use analytics and tags to monitor and enhance
 consumer experiences, generative AI could more automatically suggest DBT GPT ™
the next logical purchase or step in a customer journey, without manual
journey design.
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What We Do Automated content generation:

generative AI and back-end ecommerce
How We Do It Not only can generative AI improve the front-end customer experience,

but it can also automate workflow on the back end. While creative

Why We Do It work from generative AI models lacks complexity and nuance, new
systems can easily automate simple, consistent content tasks at a

human level.
DBT GPT ™
“Generative AI can speed up content creation for commerce,” says
About Us Rakesh Ravuri, CTO at Publicis Sapient. “Future iterations of these
models will hopefully provide more transparency and fewer errors, but
the information still needs to be reviewed and validated.”
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There are several scenarios within back-end e-commerce transactions

Contact Us where generative AI is already assisting with content creation:

 DBT GPT ™

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What We Do
Consistent product descriptions

How We Do It In the past, retailers invested in AI to automatically A/B test product

descriptions, finding the most engaging variation. However, recent

advancements in AI’s contextual ability allow retailers, specifically
Why We Do It retail marketplaces, to automatically standardize descriptions across a

variety of sellers.

DBT GPT ™ Often, third-party vendors upload wildly inconsistent product

descriptions. Rather than hiring associates to manually rewrite product

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descriptions, content writers can directly prompt generative AI with
specific instructions and constraints to create product descriptions that
Careers are standardized, grammatically correct and in line with brand tone.

In a similar manner, generative AI can be employed to collate and

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analyze product reviews, providing retailers with valuable insights into
customer sentiment and product performance. This allows for proactive

adjustments to product listings and marketing strategies, further

 enhancing the customer experience. DBT GPT ™

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How We Do It Personalized product images

Another formerly manual content creation process that can be improved

Why We Do It through generative AI is product images. High-quality product images
require photographers, graphic designers, models and creative staff for

DBT GPT ™ the shoot. Generative AI would allow retailers to generate

personalized product images for each customer based simply on text

About Us descriptions and historical image data.

For example, an athletic apparel retailer could automatically generate

Careers an image of a college student wearing a sports jersey on a college
campus backdrop for a 19-year-old customer. If customers are willing to

Contact Us provide more personal data or even their own prompts, generative AI
could show the customer each product in a variety of different contexts

of their choosing—even on a digital twin of their own body.

 DBT GPT ™

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Auto-fill transaction flows

How We Do It The same use case could also apply more generally to full web pages,
allowing retailers to guide their vendors and customers through the
purchase journey even faster. Right now, most e-commerce website
Why We Do It
flows are generic and fixed or based on simple inputs like time zone or
channel.

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Generative AI would allow retailers to provide abbreviated site
experiences for each customer and each vendor, automatically filling in
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product, store or customer information on the back end.

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Secondary decision-making: generative
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AI and supply chain optimization
What about use cases outside of the consumer interface? There are a
variety of human-to-human and human-to-machine interactions that
 could be enhanced and streamlined through the conversational ability DBT GPT ™
of large language models

Contact Us One use case that’s less explored in the retail space thus far is the
supply chain. Generative AI as a communication vehicle could reduce
What We Do costs and create more seamless experiences for supply chain leaders,
specifically through accelerating secondary decision-making.

How We Do It “We have supply chain control towers for visibility and tracking. We

also have proper prediction and forecasting algorithms that use AI,”
says Ravuri. “Generative AI could add a layer of decision-making
Why We Do It
support to existing technology for a variety of unique contexts.”

There are several scenarios where generative AI could add to current

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supply chain technologies:

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Where is my package?
 The biggest question in supply chain is always: “Where is the DBT GPT ™
package?” Currently, stakeholders have to reach out manually or use

limited tracking information to access package touchpoints across a

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variety of different databases.

What We Do Generative AI with conversational capabilities could answer this

question much faster without room for error or confusion. For example,
a customer or associate could ask a chatbot specifically, “When will
How We Do It
the package get to me?” or “Can the package be rerouted?” and
generative AI could resolve these simple questions interactively.
Why We Do It

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Packing configurations in transport

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Supply chain managers currently optimize packing configurations using

Contact Us AI-powered algorithms, but generative AI could provide a trouble-

shooting layer for unique contexts. For example, something may be

leaking from the floor, or managers may prefer a configuration with a
one-meter space for people to walk in. A manager could ask
 generative AI for a solution to a specific packing scenario using simple DBT GPT ™
language.

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Generative AI also has the power to quickly determine new
configurations for shipping labels. Introducing new elements to this
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critical real estate is often a complex decision-making process based on
unique variables with lots of room for error and inefficiency.

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A large language model could generate new label printing
combinations without violating any constraints to assist decision-makers
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in finding the best possible use of space.

Learn more about common pitfalls when implementing AI in the supply

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chain and how to ensure success.

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Top 5 Retail AI Use Cases in 2024
 Our industry experts reveal the top AI DBT GPT ™
opportunities for retailers across grocery,
industrial, wholesale and distribution, B2B,
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convenience and apparel sectors in our
2024 outlook.
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Access the report

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Which retailers are ahead of the
DBT GPT ™ generative AI curve?
While most retailers are still experimenting with generative AI or
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creating an AI strategy, some retailers have already rolled out
generative AI tools, policies and experiences.
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Here are some of our experts’ favorite real-time examples:

Contact Us Associate efficiency: Walmart's internal AI-powered personal assistant

for remote workers
 “While it began as an experimental generative AI “playground” for DBT GPT ™
remote workers, Walmart Canada’s generative AI tool “My Assistant”
has officially rolled out as a collaborative chatbot across the company.
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The technology is meant to help associates simplify tedious tasks, like
taking meeting notes or summarizing large documents. In the future, the
What We Do
retailer hopes to integrate My Assistant with the company’s intranet and
HR platforms as a self-service portal that can offer on-demand
How We Do It information to all employees.”

Sudip Mazumder, Senior Vice President and Retail Industry Lead

Why We Do It

Customer experience: Amazon’s AI-generated customer review

DBT GPT ™ summaries

About Us “Leveraging the power of customer feedback, Amazon has introduced

an AI-powered feature that generates concise summaries of product

reviews, enabling buyers to make informed decisions without sifting

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through a sea of text entries, star ratings and customer photos. This
feature distills the essence of customer reviews, highlighting key themes
Contact Us and extracting valuable insights from repeated phrases. With a few
clicks, customers can delve deeper into specific aspects of the product,

guided by the AI-generated summary. Amazon's vast collection of

 reviews has transformed it into a major resource for customers, DBT GPT ™
regardless of their purchase intention. This feature holds immense
influence on consumers, and reducing review fraud through technology
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will only amplify its impact.”

What We Do Jackie Walker, Senior Director of Retail Customer Experience

How We Do It Customer experience: eBay’s product description generator for third-

party sellers

Why We Do It “eBay is leveraging generative AI to streamline the product listing

process for third-party sellers. By analyzing product photos, AI can
automatically generate comprehensive descriptions, including titles,
DBT GPT ™
product details and release dates. This innovation significantly reduces

About Us the time and effort required for sellers to create product listings,

although the feature is still in the early stages.”

Careers Sara Alloy, Head of Retail Experience

Contact Us Capability building: Walmart’s commitment to use AI ethically and

responsibly
 “Walmart's Responsible AI Pledge outlines six key principles for ethical DBT GPT ™
AI development and deployment, aiming to ensure AI is used
responsibly and beneficially while safeguarding customer trust and
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privacy. Walmart is the first retailer to publicly release guardrails in this

manner, encouraging other retailers to adopt similar principles.”

What We Do
Kevin Drummond, Managing Director

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Why We Do It The drawbacks of generative AI for

retailers
DBT GPT ™ Despite the successful examples above, rolling out generative AI
processes and experiences in the early stages of the technology poses
About Us a number of risks and challenges that retailers should be aware of.

The creator of ChatGPT previously said it was a “mistake to be relying

Careers on it for anything important right now” due to its propensity to provide

strikingly believable yet nonfactual answers without the ability to vet or

Contact Us validate them—and it takes significant investment to code in this
capability.
 ChatGPT’s creator also noted that “regulation will be critical and will DBT GPT ™
take time to figure out.” Retailers looking to develop their own
generative AI models before industry regulation will need to
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systematically teach AI literacy and create ethical policies for their
associates to avoid consumer backlash from generative AI gone wrong.
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“Brands need to be very transparent with people about when they’re
communicating with AI and make those choices wisely,” says Alloy.
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“We’ve already seen public outrage over inappropriate usage of the

technology in sensitive situations.”

Why We Do It

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How generative AI will change the retail

Careers industry
While the initial hype surrounding generative AI may have subsided,
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this classic decline in fanfare around new innovations should not be
misconstrued as a lack of enduring value or relevance for the
technology.
 In fact, the opposite is true—in several years, generative AI could DBT GPT ™
become the cornerstone of e-commerce experiences.

Contact Us Retailers should be prepared for this future, whether they choose to
integrate generative AI into their own e-commerce stores and businesses
What We Do or not.

What’s next?
How We Do It
Data will equal dollars

Why We Do It The actionable takeaway for retailers should be investing in data

strategy. Generative AI models rely on large, unstructured data sets,

and the quality of this data has a direct impact on the ROI of the model
DBT GPT ™
itself. For retailers, much of this data will come from customers—across
channels, regions and brands. In order to collate this data, retailers
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need to:

Create and centralize customer data using a robust internal data

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strategy and governance
Invest in tech talent or upskilling associates to work with artificial
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intelligence tools, whether it’s to create efficiency with content
creation or build out proprietary large language models
 Rethink legacy technical architecture to accommodate generative AI, DBT GPT ™
including CMS systems, supply chain mechanisms and customer data

platforms
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Retailers that invest in their data inputs (customer data, data quality
What We Do control, data infrastructure, etc.) will quickly gain traction in the AI
space over retailers that jump to their data outputs.

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Getting started with generative AI
Why We Do It So, for retailers that are looking to test and learn with their first use
cases, what’s the best area of the business to start with?

DBT GPT ™ Most should begin with conversational commerce.

About Us “It’s the first inroad to test out this technology, before expanding it to
other areas of your ecosystem,” says Mazumder. “Beyond that, retailers
can prioritize new use cases by asking themselves the following
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questions.”

1. Where are sales associates spending most of their time?

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2. What are the biggest missed opportunities to upsell or cross-sell?
3. How can associates access critical internal knowledge more
efficiently?
 4. Where are customers and sales associates experiencing the most DBT GPT ™
frustration?
5. What are the most frequently asked customer questions?
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What We Do

How We Do It “Retailers should start experimenting

now because this technology has the
Why We Do It potential for a serious uptick in
customer engagement and revenue.”
DBT GPT ™ Sudip Mazumder , SVP and Retail Industry Lead

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Overall, generative AI in the retail space is a long-term value play—

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requiring deep technical expertise across many subject areas.
 DBT GPT ™
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industry leaders.

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 Sudip Mazumder DBT GPT ™

Senior Vice President

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Rakesh Ravuri
CTO, SVP Engineering
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Sara Alloy
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