In this week’s technology news, retail is ahead of the curve with generative AI…
Retail Industry Surges Ahead in AI Deployment, Outperforming Other Sectors
While global investment in AI is seeing a downturn, the retail sector bucks the trend with robust adoption and significant financial gains, despite widespread challenges in successful AI implementation across industries, according to Lucidworks’ second annual Generative AI Global Benchmark Study.
The research is based on a survey of more than 2,500 business leaders across major industries. The aim of the study was to determine the progress companies are making in deploying generative AI. The results were a little disappointing.
“Despite the initial hype, slow deployment and low success rates are commonplace across most industries, with only 25 percent of planned projects fully implemented,” the report’s authors said. For retail, though, the industry leads others “in deployment in revenue and growth initiatives and is second in total AI deployments across all industries,” the report stated.
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“Retailers are also seeing strong financial benefits from AI, with nearly half already reporting increased revenue and cost savings as a result of their initiatives,” Lucidworks said.
The results are surprising given that pre-pandemic, the retail industry tended to be behind other industries in investing in new technologies — such as predictive analytics and machine learning.
“In 2023, nearly 50 percent of retailers had a positive view of AI, one of the highest percentages across the industries surveyed. That initial wave of enthusiasm translated into one of the most successful deployment rates in 2024,” said Mike Sinoway, chief executive officer of Lucidworks.
Sinoway said retailers are “constantly under pressure to innovate and adopt new technologies to enhance customer experiences, often setting the pace for other industries. The key for retailers moving forward is to strike the right balance between reaping the rewards of AI, managing costs, and mitigating potential risks.”
Deployment of generative AI also comes with a unique set of concerns. The report found that concerns around AI “spiked across all industries in 2024, including three times as many security concerns, five times as many accuracy concerns, and four times as many transparency concerns.” The researchers found that the largest spike was around the cost of implementation — jumping from 3 percent in 2023 to 43 percent this year.
“Retailers are particularly concerned about costs (63 percent), but they are still rapidly adopting AI and experiencing fewer delays than other industries,” the report stated.
Other findings from the survey include a global investment slowdown. “Global AI spending plans are down sharply, with only 63 percent planning increases (versus 93 percent last year),” the report’s authors said adding that U.S.-based businesses “remain above average with 69 percent planning to increase AI spend.”
The investment slowdown is also coupled with delayed deployment and low success rates in this year’s report. Lucidworks found that 25 percent of planned projects are fully implemented. “This lag is stalling anticipated ROI, with 42 percent of companies yet to see significant benefits from generative AI initiatives,” the report said.
Improving Cross-border E-commerce Success
As consumers continue to shop at overseas online sites, loyalty and repurchase patterns have become key indicators for retailers and brands. To gain a deeper understanding of this and other cross-border e-commerce trends, DHgate Group has teamed up with the University of Hong Kong to release a white paper, titled “The Cross-border E-commerce Repurchase Revolution: Consumer Behavior Insights and Market Opportunities.”
The research aims to offer strategies that enhance shopper loyalty and repurchase rates, “guiding the sustainable development of the cross-border e-commerce industry,” the report’s authors said, adding that the data revealed several challenges to loyalty and repurchase behavior.
“These challenges include the diversification of user needs, the differentiation of shopping experiences and the cultivation of brand loyalty — all of which have become pressing issues for cross-border e-commerce platforms to address,” the report noted.
In response, the experts at DHgate Group, the online wholesale marketplace platform, and the university have come up with several strategies to bolster repurchase rates and customer loyalty. The first is to boost site traffic. “The short-term goal is to optimize traffic attraction and distribution mechanisms to support sellers’ branding efforts and multiplatform sales channels, thereby reducing operational risks,” the authors said adding that it is also important to provide sellers with traffic support “to address the conflict between product homogenization and buyers’ personalized demands.”
They also suggested localizing warehousing and logistics. “The long-term goal is to encourage sellers to integrate their industrial chains, establish overseas warehouses and develop their own logistics systems,” the report stated. “The overseas warehouse model can improve logistics contract fulfillment efficiency, reduce operating costs and enhance overall fulfillment performance.”
Revolutionizing Influencer Marketing
In a bold move to reshape the creator economy, Word on the Block steps up as a game changer for influencer marketing. Spearheaded by CEO Seth Girsky, this innovative platform is on a crusade to streamline how brands and content creators collaborate on campaigns.
Initially a traditional ad network in New York serving local businesses, the shift to remote work during the pandemic spurred Word on the Block to pivot towards serving the digital sphere.
Girsky, inspired by the inefficiencies he observed while surfing YouTube during lockdown, envisioned a more streamlined process to empower creators and brands alike. Word on the Block now serves as a nexus for connecting brands with the best creators without the hassle of manual searching, negotiating and campaign management.
The value proposition offers opportunities for creators, transparent pricing and quicker payouts — effectively turning passion projects into lucrative careers.
“Operating within the creator economy exposed two extremes: big creators are bombarded with ads, while smaller creators, often more authentic in engagement, are overlooked,” Girsky said. This realization led to the development of a platform catering to diverse creator sizes, optimizing their potential to earn significantly through partnerships with compatible brands.
For brands, the challenge of managing creator programs and negotiating fair pricing can be daunting. Word on the Block simplifies this with a free tool that previews pricing models, ensuring brands maximize their return on investment. “As we refine and introduce more tools, our vision is that both brands and creators not only earn more but also achieve greater success with more efficiency per dollar invested,” Girsky said.
Since its evolution, Word on the Block has facilitated hundreds of influencer campaigns for varied industries such as retail, health, wellness, and more, with clients such as Morgan & Morgan and BrandsMart reaping the benefits.
Highlighting the impact of influencer marketing, Girsky praised brands such as Manscaped and Liquid Death. “These brands might sell simple products, but their creative and emotive approach fits perfectly on social media,” he said. “Allowing creators to engage genuinely with their audience is when we see the magic of influencer marketing unfold.”
As Word on the Block continues to enrich and streamline the influencer campaign process, it stands as a force in the evolving landscape of digital marketing.
