A new survey from UiPath “The Reaction Gap” analyses research from 500 UK retailers and finds retailers who will win this years’ Golden Quarter won’t be the ones with the most AI, instead, they’ll be the ones who connect their data, systems and decisions so they can act while it still matters.
One of the key findings is the way AI is used. Instead of using it pro-actively the majority seem to be using AI in a reactive way. With more than two-thirds (69%) spotting and reacting to problems only once they’ve already cost them in lost sales, eroded margin or missed stock. With stock visibility failures amongst the key (cited by 39.8%) issues, followed by operational bottlenecks (39%) and customer service breakdowns (28.2%) in second and third place.
As UiPath points out, by the time the issue surfaces, the chance to act on it has usually gone and it’s this time between finding the issue and using the technology that UiPath calls the “Reaction Gap”.
The survey found that with the retailers surveyed, AI adoption is all but universal, with 97% of retailers have implemented AI in some form. However, of those that have adopted and fully implemented AI, almost half (47%) are yet to see any measurable commercial impact, and just 26.8% are seeing it already delivering commercial impact.
Catherine Frame, Director of Retail Solutions at UiPath says. “With Black Friday and the Golden Quarter fast approaching, the retailers that perform best will be the ones with the visibility to spot issues early, the confidence to act quickly, and the orchestration to turn insight into action across pricing, inventory and operations. Too often, businesses blame supply chain disruption when the real problem is that they’re making decisions with incomplete or outdated information. AI-powered decision-making can make the difference between reacting to disruption and staying ahead of it”
In summing up the results, Frame warns that what’s needed is for retailers to turn from being re-active to pro-active with their AI use. Adding “The retailers that perform best will be the ones with the visibility to spot issues early, the confidence to act quickly, and the orchestration to turn insight into action.”
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