CEO speaks: AI-driven innovation reshaping retail and manufacturing
Imagine you own a clothing line. Your social media accounts are vital platforms for customer feedback. Using sentiment analysis, a natural language processing (NLP), you can dive into customer emotions, preferences, and purchasing motivations. Starbucks’ discovery of the Unicorn Frappuccino idea in 2017 is a prime example of the power of sentiment analysis.
Sentiment analysis, which involves understanding people’s opinions and feelings, has become hugely popular in the retail industry. By 2030, it’s expected to be a $46.9 billion market, growing at a rate of 12.8% annually.
Today, our shopping experiences have undergone a monumental transformation, thanks to Artificial Intelligence (AI). From personalised shopping recommendations to virtual fitting rooms and fraud detection, shopping is no longer the same. But before we discuss more about AI in retail and manufacturing, let’s travel back to the 1940s. Around 1946, the term ‘automation’ was coined in the automobile industry, primarily associated with manufacturing. Over time, its influence expanded beyond factory floors, finding importance in various systems. One such technology that emerged from automation is robotics. Today, robotics stands as a distinct and influential field, driving advancements in AI, machine learning (ML), and human-machine interaction.
Robotic Process Automation (RPA) and AI are powerful technologies on their own, but when combined, they become even more powerful. Companies are now integrating RPA with AI to create Intelligent Automation (IA), offering end-to-end solutions that revolutionise processes.
Capgemini’s estimate suggests the retail industry could save a whopping $340 billion annually through process automation. This includes tasks like managing returns and maintaining inventory records. Also, by integrating RPA with AI-powered chatbots, retailers can streamline customer service tasks such as product inquiries and returns, enhancing both efficiency and customer satisfaction.
In fact, AI has transformed shopping by giving personalised recommendations, using chatbots for help, allowing visual search, managing inventory better, adjusting prices, preventing fraud, and understanding customer behaviour. Imagine Olay customers receiving personalised skincare treatments even without visiting a dermatologist, courtesy AI. With Olay’s Skin Advisor app, a simple selfie allows AI to accurately assess skin age and health, providing tailored skincare recommendations for each user. Similarly, Nike’s use of AR technology addressed sizing issues by allowing customers to virtually try on shoes before purchase, ensuring a perfect fit and enhancing the online shopping experience.
AI algorithms have also transformed store planning and inventory management in manufacturing by leveraging advanced analytics to forecast demand accurately, optimise inventory levels, and adjust replenishment orders based on real-time sales data and supply chain variables. These algorithms help manufacturers to streamline assortment planning, maximise sales per square foot through optimised space planning, and predict equipment maintenance needs to minimise downtime.
As an educator, my concern is, of course, the students. It’s important to face the reality that many traditional engineering jobs will be taken over by AI in the next decade. Ignoring this fact would be like living in a fool’s paradise. With AI’s rapid pace, engineers will no longer just need technical skills—they’ll also need to think deeply and creatively.
This is where the role of engineering colleges comes into play. They, too, need to evolve to keep pace with the changing landscape shaped by AI. Till now, education emphasised understanding the mechanics of ‘how’ things work, but with AI taking over the world by storm, we need to shift focus towards understanding the ‘why’ and ‘what’ behind engineering innovations. To achieve this, students must develop deep critical thinking skills, which will enable them to explore complex concepts and analyse underlying principles. This approach not only prepares students to thrive in a rapidly evolving technological landscape but also fosters a deeper understanding of the societal implications of engineering solutions.
To prepare for this shift, engineering colleges must update their curriculum. Instead of focusing solely on technical know-how, they should emphasise critical thinking, collaboration, and communication. Students will need to study a broader range of subjects, including finance, art, and ethics. By welcoming these changes, and that, too, with open arms, engineering education can better prepare students for the future where AI will definitely be the game-changer.
The author is the Group CEO of Techno India Group, a visionary and an educator. Beyond his corporate role, he is also a mentor who guides students towards resilience and self-discovery
