How Major Players Leveraged AI in Digital Grocery in 2022
At a Glance
- Artificial intelligence (AI) has emerged as a game-changer in the grocery industry
- 82% of grocery retailers believe that adopting AI will be necessary to compete in the future
- Major players in the grocery sector harnessed the power of AI to enhance their operations and deliver superior customer experiences
- Let's delve into the strategies and initiatives undertaken by these key players, shedding light on the remarkable ways in which AI reshaped the grocery industry in 2022
The digital revolution has significantly transformed how we shop for groceries, and artificial intelligence (AI) has emerged as a game-changer in the grocery industry. According to Grocery Doppio’s May 2023: State of Digital Grocery Performance Scorecard, 82% of grocery retailers believe that adopting AI will be necessary to compete in the future. Additionally, the report mentions that 13% of grocers will spend non-budgeted funds exploring AI solutions in 2023.
In 2022, major players in the grocery sector harnessed the power of AI to enhance their operations and deliver superior customer experiences. By leveraging AI technologies, these industry leaders revolutionized inventory management, personalized recommendations, supply chain optimization, and more, ultimately shaping the future of grocery shopping. AI-driven solutions have empowered grocery stores to streamline operations, improve efficiency, and gain a competitive edge.
By harnessing AI technologies, these significant players reshaped the digital grocery landscape, setting new standards. Let's delve into the strategies and initiatives undertaken by these key players, shedding light on the remarkable ways in which AI reshaped the grocery industry in 2022:
Kroger leverages AI to enhance various aspects of its operations and provide a superior shopping experience to its customers. In 2022, Kroger implemented an end-to-end fresh initiative, utilizing AI to improve inventory management, strengthen the supply chain, and enhance the freshness of its offerings. The company also emphasized its Our Brands portfolio, which uses AI-driven data science teams to personalize product recommendations and deliver personalized offers to customers, thereby increasing loyalty and engagement.
Kroger has formed strategic partnerships to further leverage AI and data analytics in its operations. One notable partnership is with Ocado. Through this collaboration, Kroger is utilizing Ocado's advanced robotics technology and AI-powered automation systems to enhance its e-commerce capabilities and customer fulfillment. As part of its partnership with Google Cloud and Deloitte Consulting LLP, Kroger is using cloud-based data analytics, artificial intelligence, and machine learning tools to empower associates and store leaders to make operational decisions in real time that will increase operating efficiencies.
In 2022, Walmart continued to leverage AI and technology to drive its strategic improvements and enhance the customer experience. The company harnesses the power of its capabilities in the Intelligent Retail Lab (IRL) to make shopping better for its customers now and in the future. The IRL showcases the company's vision for the future of retail by integrating AI and cutting-edge technologies into its physical stores. Through IRL, Walmart aims to create a seamless shopping experience that leverages AI-powered cameras, interactive displays, and real-time analytics to enhance operational efficiency and customer satisfaction. This innovative approach allows Walmart to gather data and insights to optimize various aspects of the shopping journey, from inventory management to personalized recommendations, while continuously experimenting with emerging technologies to drive the evolution of retail.
The company’s omnichannel approach combines people-led values with tech-powered innovations. Walmart made advancements in pickup and delivery, membership benefits, and expanded its e-commerce assortment. Notable initiatives included the implementation of Scan & Go at Sam's Club and the development of an in-house conversational AI platform used by millions of customers and associates. Additionally, Walmart partnered with Salesforce to expand its business model by scaling up local fulfillment and delivery capabilities on its e-commerce platform.
In 2022, Amazon made notable advancements in leveraging AI to transform the retail experience, mainly through its innovative "Just Walk Out" technology. The company deepened its integration of this technology in Amazon Fresh stores, aiming to redefine the convenience of grocery shopping. With "Just Walk Out," customers can simply enter the store, pick up the items they need, and leave without going through a traditional checkout process. The technology uses a combination of computer vision, sensor fusion, and deep learning algorithms to track the items customers take off the shelves and automatically adds the charges to their Amazon accounts upon exit.
By eliminating the need for traditional checkout lines, Amazon offered customers a seamless and frictionless shopping experience. “Our sensors and algorithms have evolved to detect a broad range of products and differences in shopping behavior in full-sized grocery stores, all while ensuring an effortless customer experience,” said Amazon’s Vice President of Physical Retail and Technology, Dilip Kumar. “We also increased the diversity of environments our algorithms have to account for as we deploy Just Walk Out technology to third-party retailers.”