GenAI to boost productivity in India by 35% to 37% in next 5 years: EY India

New Delhi [India], February 13 (ANI): Use of Generative Artificial Intelligence (GenAI) can boost retail productivity by 35 to 37 per cent within the next five years, according to EY India's latest report.

The report titled 'How much productivity can Generative AI (GenAI) unlock in India? The AIdea of India: 2025' adds that the GenAI will revolutionise insights-driven pricing, promotions, and customer experiences in India's burgeoning retail sector.

It further added that the integration of GenAI into key areas such as procurement, supply chain, and quality management will make the industry become more agile, efficient, and customer-focused.

Pointing out the increasing adoption of GenAI in India, it added that an increasing number of organisations in India are adopting it to meet diverse consumer demands, improve efficiency, and foster innovation, enabling growth and adaptability even with resource constraints.

Angshuman Bhattacharya, Partner and National Leader--Consumer Product and Retail Sector, EY-Parthenon, said, "The ongoing evolution of GenAI promises to dismantle technological barriers and pave the way for greater synergy. However, maintaining a balance between automation and human-centric experiences will remain essential for GenAI's long-term success."

About 48 per cent of survey respondents shared that they have already initiated proofs of concept (POCs) of using GenAI in their organisations. A significant number, 32 per cent, claimed that they are either about to invest in GenAI or have already allocated budgets towards this.

The report added that sales are the top function of the retail industry that is getting attention, with 52 per cent of organisations focused on enhancing the sales function using GenAI recommendation engines to enhance consumer shopping experiences.

Globally, industry leaders are also harnessing the potential of GenAI to redefine their operations. For instance, brands like H&M are enhancing sustainability initiatives, product development, and marketing; Coca-Cola is optimising delivery routes and stock management; and Amazon Go is enabling cashier-less checkout, the report highlighted.

As per the report, in the near future, GenAI is anticipated to enhance personalised marketing, product recommendation engines, and AI-driven market research and consumer insights.

In the long term, it is expected to complete the digital transformation of the supply chain, autonomies manufacturing and logistics, and integrate the use of augmented reality (AR) and virtual reality (VR) in customer experiences, potentially giving rise to new AI-enabled business models, the report highlights.
It further highlighted that the implementation of AI has been successful in organisational cost reduction according to 56 per cent of the respondents; for 44 per cent of the respondents, it has helped increase revenue and improve customer satisfaction. (ANI)