What Artificial Intelligence can do in retail - and what it cannot

The use of Artificial Intelligence in retail logistics offers enormous potential, but it is not a miracle cure. This is the conclusion of Prof. Dr. Stefan Rock, Professor of International Retail Management and Retail Logistics at THI Business School, in an article published in the current issue of the “Lebensmittelzeitung”.

Prof. Rock cites procurement as an example of the potential applications of Artificial Intelligence. For instance, the structure of inventories at large retail companies often does not correspond to demand. Case studies show that when company, customer, demand and supplier data are available, Artificial Intelligence can help to avoid incorrect planning. This would create enormous savings potential for retail companies.

Generally speaking, processes that were already suboptimal will not be improved by the use of Artificial Intelligence. However, the quality of the data needed to make these processes more efficient will. If AI were used along the entire value chain, everyone could benefit in the end: the company, but also suppliers, customers and even the environment, Rock explains.