Brands Can’t Afford to Underestimate the Power of Artificial Intelligence, OMD’s Retail Revolution

LONDON, August 29, 2017 /PRNewswire/ —

If brands are not thinking about the coming AI revolution they are already falling behind, according the latest OMD’s Retail Revolution study. This is significant for brands that are challenged to keep up with customers’ rapidly developing expectations.

Shoppers are increasingly demanding VIP treatment from brands that will respect their time, their individuality and can inspire them in unique, personal ways. Interactive technologies have fuelled these increasing demands, the only way for companies to deliver the high-quality personalised experiences customers now expect – at scale – is through the next stage of those technologies: artificial intelligence.

OMD’s Retail Revolution study, in partnership with Goldsmiths, University of London, surveyed over 15,000 consumers across 13 European countries to understand their perceptions of, and behaviours with, AI in retail:

  • Almost twice as many European consumers surveyed say they are as familiar with AI as unfamiliar, with nearly a quarter already using an AI device or app and a further 41 percent wanting to get one
  • Only 17% of consumers would reject help from AI across retail sectors. Strikingly, there was a small difference with those who said they’d reject any kind of assistance (15%)
  • However, 47% of consumers claimed they would act less patiently if they knew they were interacting with AI

The question for brands is how best to employ AI to create the shopping experiences of the future. However, the risk, as with so many earlier technologies, is that companies will focus on what the machines are capable of rather than what customers want.

Jean-Paul Edwards, Director of Strategy and Product Development, OMD EMEA, said: “As an industry, we need to turn the bundle of technologies described as AI into services that people can care about, such as their insurance app or their cinema chatbot. It needs to be an upgrade to apps, ecommerce, and so on.”

According to OMD’s research, the key things brands need to think about are where to put AI in the communication process, where humans have to take over, and making the whole process as seamless as possible. They should think about training the machines to work with the consumer to deliver value, as that will encourage consumers to use them further. Brands should also think about matching different interfaces to different demographics.

Two distinct groups of consumers emerged from the survey as reluctant to engage with AI: young people who don’t think they need it and older ones who don’t understand it. Over a third (39%) of 18-35 year olds who said they wouldn’t consider having an AI-enabled device as part of their lifestyle said it was because they didn’t need AI. Another quarter said it was easier to use their existing default option.

As a result, retailers will need to manage customers’ expectations, at the same time as inspiring them about the benefits the technology can deliver to them right now.

Edwards commented that, “People find it hard to imagine this stuff. Brands should inspire them, but inspire them around their everyday needs. Brands need to talk about the benefits, not the features.”

The over-riding drivers for brands, according to the research, will be delivering value for customers, winning their trust by being transparent about who’s collecting their data and how it’s being used, as well as making them feel like they’re in control of their interactions.

To access a summary of the study, please visit:

To watch the introductory video, please visit:

To watch the Retail AI Hackathon sizzle reel, please visit:

About the Retail Revolution
OMD, in partnership with Goldsmiths, University of London, embarked on a dedicated research project investigating the possibilities, potentials, and pitfalls of implementing bots in a retail environment. Through qualitative explorative techniques, expert interviews, a retail focused hackathon and a quantitative online survey across 13 European countries with over 15,000 nationally representative respondents, the Retail Revolution gives insight into how consumers accept, understand and trust AI, exposing how brands can implement AI services that deliver meaningful human impact.

European countries covered to date include: United Kingdom, Germany, Italy, Spain, France, Poland, Russia, Romania, Netherlands, Finland, Sweden, Norway and Denmark.

OMD EMEA, part of OMD Worldwide, is the largest and most awarded marketing performance company in the world.

Recognised for its global footprint, strategic integration and creative innovation, OMD EMEA provides a range of services globally including communications strategy, media planning and buying, digital execution, content creation, entertainment marketing, sponsorship and brand analytics.

Investing over $19bn across 80+ offices in 63 markets, OMD EMEA works with world-class companies including: Renault, PepsiCo, Liberty Global and The Walt Disney Company.

OMD EMEA has won several Agency of the Year accolades, including Cannes Lions 2017 Media Network of the Year and coming top of the Gunn Report for Media eleven years in a row, which measures marketing innovation and winning Agency Network of the Year at the Festival of Media Global Awards 2015 & 2016.

OMD EMEA is a unit of Omnicom Media Group, the media services division of Omnicom Group Inc. (NYSE@ OMC).

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