JAKARTA - Ahead of Ramadan and Eid al-Fitr, a global study with the National Retail Federation (NRF) shows that although almost 72% still shop in physical stores, 45% are now using artificial intelligence (AI) to support their shopping journey.
This change reflects the evolving expectations of consumers, who are now increasingly integrated in utilizing physical and digital retail channels.
This research found that AI is most widely used to conduct product research (41%), interpret reviews (33%), and find the best deals (31%).
As AI changes the way consumers make decisions, IBM states that brands and retailers need to anticipate changes and design more relevant experiences for consumers.
First, brands need to identify the point where consumers use AI to conduct research, compare options, and seek value, and ensure that each moment is seamlessly connected to the purchase stage.
IBM also advises brands to utilize agents to place promo searches, interpret reviews, and support more personalized shopping.
"Making data readiness and testing a priority and highlighting the brand's strengths. Using AI to increase relevance and reduce barriers, while maintaining creativity and the authenticity of the brand's identity," wrote IBM.
Not forgetting to invest in AI capabilities and partnerships. As many as 51% of executives identify the limitations of AI expertise as a challenge, so strengthening internal competencies needs to be balanced with strategic partnerships to ensure effective and responsible AI implementation.
"For retailers today, the main focus is on how to strategically integrate AI to strengthen, not weaken, the brand's relationship with customers," the company added.
As concluded in the IBM study, the key to success lies not only in the use of AI, but in its proper integration into retail operations, without eliminating the cultural closeness and personal relationships that are the strength of retail in Indonesia.
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