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Legacy tech giants Microsoft and SAP are entering the retail sector’s AI boom, hoping their new tools will assist retailers in coping with changing consumer behaviors and market volatility.
Just before the National Retail Federation’s main conference (Jan. 14-16), Microsoft and SAP revealed new AI-powered features designed to offer retailers better predictive analytics, automated operations, and improved customer experiences.
The push for generative AI in retail
SAP has introduced new additions to its supply-chain management and order orchestration services, enhanced with AI to create highly automated replenishment processes and provide detailed fulfillment updates for customers.
At the same time, Microsoft has integrated its Copilot AI into Dynamics 365 applications to help retailers generate customer insights and optimize marketing campaigns. It also launched retail-specific AI templates and data connectors to speed up AI adoption.
Retailers are seeking ways to quickly learn and scale with generative AI, according to Shelley Bransten, CVP of Global Retail, Consumer Goods, and Gaming industries at Microsoft.
Retail’s AI investment surge
Both SAP’s and Microsoft’s new AI-driven tools aim to turn complex data into business insights, streamline operations, and enhance customer experiences to boost efficiency and profitability.
As retailers face the challenges of digital transformation and shifts in consumer behaviors, Microsoft and SAP are positioning themselves as key partners in the retail sector’s AI transformation.
The motivation behind this retail AI push is clear. According to Microsoft-sponsored research, around 87% of retailers globally have already adopted some form of AI. Additionally, Fortune Business Insights predicts that artificial intelligence in retail will reach $31.2 billion by 2028.
The AI edge in retail
These announcements highlight the vital role AI is expected to play in the future of retail. As the sector becomes more digital and data-driven, SAP and Microsoft are setting a competitive standard with their latest AI tools, emphasizing the need for strategic technology investments to stay competitive.
Retailers facing digital transformation challenges are likely to see Microsoft and SAP’s new AI tools as crucial for achieving efficiency, customer satisfaction, and profitability.
The industry will be watching closely as these tools are implemented and start to shape the future of retail operations and customer experiences.