Retail Revolution: Applying Artificial Intelligence
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Transcript of Retail Revolution: Applying Artificial Intelligence
THE OPPORTUNITY:DIGITAL HIERARCHY OF NEEDS
I want to…Feel & share
I want to…Learn, buy, know, go, do
Emotion & Action
Micro Moments
Basic Connectivity
AI AS A SUITE OF TECHNOLOGIES
MACHINE
LEARNING
LANGUAGE
PROCESSIN
G
VOICE
ACTIVATION
IMAGE
RECOGNITION
AUTONOMYROBOTICS ECOSYSTEMS
AITHREE AREAS OF AI APPLICATION
MARKETING
WITH PROGRAMMATIC
CS
INFLUENCER
ENGAGEMENT
AIMARKETING
OFSERVICE
EXPERIENCES
CAMPAIGNS
VOICE CAMPAIGNS
AIMARKETING
TOSEO
VOICE SEARCH
ECHO LOOK
THE RESEARCH/WHAT WE DIDOMD and the Goldsmiths research team at the University of London embarked on a dedicated research project
1- To understand consumer perceptions of, and behaviours with, artificial intelligence across different retail environments
2- To investigate the possibilities, potentials, and pitfalls of implementing bots in a retail environment
18Technologies
tested
13Markets
15,000+NAT REP
Respondents
6Subject Matter
Experts
1Hackathon
6Chatbots Created
WE ARE ALREADY USING IT
Consideration and use of AI
Q. Would you consider AI to be a part of your life?Source: OMD Snapshots, April 2017
Base: EMEA Total n=14960
12%7% 7% 4% 8%
14% 11% 11% 10% 13%21%
14%20%
25%
4% 8% 14%14%
12% 22%29% 32% 29%
33% 45%
47%
41%
61%61%
45%48%
58%50%
42%32%
42%26% 18%
19%
22%28% 25%
36%30%
16% 18% 18%26%
16% 19% 23%14%
Yes, I am already usingan AI device/app
Yes, I would like to getan AI device/app
No
I don't understand whatit is
22% OF EUROPEANS ARE ALREADY USING AI AND ANOTHER 41% WOULD LIKE TO GET AN AI DEVICE OR
APP
36%
23%
22%
20%
19%
18%
17%
15%
13%
9%
3%
TO UNLOCK THE FUTURE THERE ARE KEY BARRIERS TO OVERCOME
AI Barriers
I don't need AI
I don't trust the data collection of AI
It is easier to use my default option, such as manually searching on a web browser or calling a customer service desk
I don't understand the benefit of using AI
I don't think AI is safe
I need to be taught how to use it
I don't think the technology is developed enough
AI is too intrusive
I don't think the interactions are seamless or human enough
It's not accessible for me
Other reason
LACK OF PERCEIVED NEED & LOW UNDERSTANDING OF WHAT AI DOES ARE KEY BARRIERS FOR DOUBTERS
Q4a. Why would you not consider an AI capable device or app as being part of your life? Source: OMD Snapshots, April 2017
Base: Those that would not consider AI n=3779
AI TO DRIVE INTERSTING, NEW SERVICES & MORE CONVENIENT PURCHASES
Willingness To Share Data
Q8b How much would you be willing to give to have an AI Interaction? Source: OMD Snapshots, April 2017 Base: Total n=13,156 across those who understand AI
8%
21%
35%
36%
Ready to pay and share datafor a better service
Ready to pay, but not sharedata for a better service
Ready to share data, but notpay for a better service
Not ready to pay or sharedata for a better service
48%
43%
30%
28%
26%
I don’t trust how my data is being used
I don’t have enough control over the experience
It depends on the task
I don’t trust the platform (e.g. Facebook Messenger, Amazon Echo)
I don’t trust the brand providing the service
Reasons For Not Trusting AI
Q9. Thinking about AI interactions, please rate how important the following are to you on a scale from 1 to 10, where 1 is not at all important and 10 is extremely important.
Source: OMD Snapshots, April 2017
Base: All respondents understanding AI Total n=13,156
AFTER DATA CONCERNS, CONNECTION WITH A HUMAN IS ONE OF THE MOST STRONGLY VALUED ELEMENTS
-6%
-6%
-6%
-6%
-7%
-8%
-8%
-10%
-10%
-11%
-11%
-15%
-21%
-20%
-23%
-23%
72%
72%
72%
72%
70%
65%
65%
60%
58%
55%
54%
46%
42%
42%
39%
39%
Not important
Important
It allows me to choose what data it can access
It explains how it is using my data
You are informed that it is an AI interaction from the beginning
It tells me where my data is being stored
I am able to choose the language of the AI interaction
There is an opportunity to contact a human agent at any point during the interaction
It is able to adapt to the information I provide
It should be able to move seamlessly across different devices
There are buttons with pre-set options available so that it saves time communicating
It is able to identify what is in images
It is locally relevant
AI interactions should be humanised
It uses facial recognition to offer a better experience
It can detect emotions or sentiment and is able to adjust its tone
It is able to understand emojis and gifs
It uses images, emojis and gifs to express emotions and make interactions more fun
THE RIGHT COMBINATION OF AUTOMATION AND HUMAN INPUT - AUGMENTATION - DRIVES AI ADOPTION
Balance on where to place the human and where to let the AI take over
Virtual interactions allow the user to be part of the decision making and
experience for themselves, whilst saving time
Q. Looking at shopping categories, what types of AI assistance would you be open to?
Source: OMD Snapshots, April 2017
UK Total, Nat Rep across those who understand AI, N=1,000
DIFFERENT OPPORTUNITIES EXIST IN SPECIFIC SECTORS
22%17% 15% 14% 14% 13% 13% 13% 13% 13% 13% 12% 12% 12% 11% 10% 9% 9% 9%
Groceries(Food &Drink)
ConsumerElectronics
Health &Fitness
Restaurants Beauty &Personal
Care
Automotive Business &Finance
Fashion &Apparel
Books &Music
VideoGames
Medicine &Health Care
IT Software& Apps
Furniture &Decor
Luxury Events Toys &Games
Movies &TV
Travel Utilities
Assistance on making more informed decisions about my purchases (eg ethical products, nutritional info etc)
23% 21% 19%15%
10% 9% 9% 8% 7% 7% 7% 6% 5% 5% 5% 5% 5% 5% 3%
Beauty &Personal
Care
Fashion &Apparel
Health &Fitness
Medicine &Health Care
Groceries(Food &Drink)
ConsumerElectronics
Luxury Automotive Business &Finance
Restaurants VideoGames
Movies &TV
Toys &Games
Books &Music
IT Software& Apps
Events Furniture &Decor
Travel Utilities
Options based on my characteristics (i.e. skin tone, height, weight, etc.)
6%7%8%9%9%9%9%10%10%11%12%13%13%15%16%16%17%18%19%
Medicine &Health Care
UtilitiesAutomotiveToys &Games
Business &Finance
VideoGames
Furniture &Decor
Health &Fitness
IT Software& Apps
ConsumerElectronics
LuxuryFashion &Apparel
Movies &TV
Beauty &Personal
Care
EventsGroceries(Food &Drink)
Books &Music
RestaurantsTravel
Surprises me with new opportunities and discoveries
As we have the data, we
can train better AI to
understand different
environments and sense
contexts to have the
best interactions
possible.
FUTURE RETAIL EXPERIENCES WON’T BE ABOUT WHERE CONSUMERS DO THEIR SHOPPING BUT HOW THEY DO IT
THINK AUDIENCE FIRST
WHAT WHEN HOW FREQUENTLY
Easy payment method
Customer service
Quick delivery
User-friendly online shopping experience
In-store experience
Seamless returns
Personalisation
58%
56%
52%
49%
37%
28%
18%
COMMIT TO TRANSPARENCY AND SHARED POWERS
48%
43%
30%
28%
26%
33%
44%
23%Trust AI
Neutral
Do not trust AI
Q5a. How much do you trust AI interactions? Q5b. Why do you not trust AI interactions? Base: Total n=13156 - all understanding AI Source: OMD Snapshots, April 2017
I don’t trust how my data is being used
I don’t have enough control over the experience
It depends on the task
I don’t trust the platform (e.g. Facebook Messenger, Amazon Echo)
I don’t trust the brand providing the service