Artificial intelligence (AI) and generative AI (GenAI) are poised to shape the retail landscape in the Asia-Pacific region, according to an IDC report. Some 85 percent of Asia-based 2000 (A2000) retailers are expected to test or invest in GenAI to enhance product data, customer support and overall customer experience initiatives through 2027.
The integration of AI technologies signals a strategic shift within the retail sector towards leveraging technology to enhance operational efficiency, customer engagement, and data management.
In the IDC FutureScape: Worldwide Retail 2024 Predictions — Asia/Pacific (Excluding Japan) Implications report, the market research firm predicts several key trends that will redefine the retail industry in the coming years.
By 2028, half of A2000 retailers will offer AI-enabled contextualised recommendations to enhance customer engagement, leading to a 40 percent increase in real-time interactions and a 15 percent boost in overall conversion rates.
By 2027, more than half of A500 retailers are expected to utilise AI for contextual ad targeting, powering next-gen retail media networks and monetizing zero-party and first-party data business models.
Advancements in computer vision technology will streamline retail operations, with a quarter of A2000 retailers projected to use computer vision by 2027 to improve self-checkout efficiency and reduce wait times for services such as kerbside pickyp, and buy online, pick up in store (Bopis).
The IDC Global Retail Innovation Survey 2023 identifies GenAI-powered chatbots as a top emerging technology for customer service in the region’s retail industry. This signifies a future where hybrid customer service models combine GenAI chatbots for routine interactions and human associates for more complex needs, promising enhanced customer experiences and operational efficiency.
“Retailers in Asia/Pacific are steering towards a digital-first approach, with AI and GenAI at the helm of this transformation. These technologies are key to unlocking new levels of customer engagement and operational agility, setting the stage for a future where retail experiences are more personalized, efficient, and resilient,” said Vijay Sarathi Gollapalli, Research Manager of IDC Retail Insights Asia/Pacific.
Beyond AI and GenAI, the report highlights other crucial trends that retailers should embrace to stay competitive. These include adopting decentralised infrastructure, leveraging mobile and wearable technology for inventory management, deploying IoT for perishables tracking, implementing multi-level loyalty strategies, increasing security spending, and adopting product experience management platforms.
Entelechy Asia 