Artificial Intelligence (AI) is rapidly transforming retail and driving significant changes. In an era of rapid technological advancements, AI has become a key factor for fostering innovation and efficiency—something retailers are now investing in to stay competitive.
Many retailers want to use AI to boost sales, improve their online revenue, and make deliveries more efficient. However, despite the interest, few are actually using AI, and even fewer have a clear plan for how to implement it.
"Many companies are riding the AI wave and investing heavily in AI solutions based on promises of business value. But the benefits are few and often only anecdotal," says project leader and researcher Alexander Flaig.
Investing in AI technology and digital infrastructure, however, is not enough. Companies struggle to leverage AI because they don’t know how to integrate it into their strategies and business models effectively.
"The problem is that no one really knows what value AI, especially generative AI, actually creates. What lies beyond efficiency gains, and what is the actual value AI generates?" says Alexander Flaig, lecturer in Business Administration at LInköping University in Sweden.
To address this issue, a new project is being launched to help companies better understand how AI can create value. The project runs from 1 September, 2024, to 31 August, 2025, and is funded by the Hakon Swenson Foundation.
The goal is to provide retailers with the knowledge they need to fully harness AI's potential, thereby creating long-term business value.
