Legacy tech giants Microsoft and SAP are making their way into the retail industry, leveraging artificial intelligence to address the industry’s need for advanced tools. With the retail sector experiencing rapid changes in consumer behavior and market volatility, Microsoft and SAP aim to provide retailers with predictive analytics, automated operations, and enhanced customer experiences through their new AI-powered capabilities.
SAP’s AI-Powered Offerings for Retailers
SAP has introduced several additions to its supply-chain management and order orchestration offerings, infused with AI. These updates enable retailers to automate replenishment processes and provide customers with detailed fulfillment updates. By incorporating AI into their systems, SAP empowers retailers to create highly automated workflows and enhance their operational efficiency.
Microsoft’s AI Integration into Dynamics 365 Applications
Microsoft, on the other hand, has integrated its Copilot AI into Dynamics 365 applications to help retailers generate customer insights and optimize marketing campaigns. Additionally, Microsoft has developed retail-specific AI templates and data connectors to accelerate AI adoption within the industry. Retailers can leverage these tools to gain valuable insights into their customer base and improve their marketing strategies.
“Retailers are looking for ways to begin working with generative AI that will allow them to learn quickly and scale effectively,” said Shelley Bransten, CVP of Global Retail, Consumer Goods, and Gaming industries at Microsoft.
Both SAP and Microsoft aim to translate complex data into actionable business insights, streamline operations, and enhance customer experiences. By utilizing AI, retailers can increase their efficiency and profitability in the face of digital transformation and changing consumer behaviors.
According to Microsoft-sponsored research, approximately 87% of retailers worldwide have already implemented AI in some capacity. The expanding market for AI in the retail sector is projected to reach $31.2 billion by 2028, emphasizing the significance of AI in shaping the future of retail.
As the retail industry evolves in an increasingly digital and data-driven landscape, Microsoft and SAP position themselves as crucial partners in the AI revolution. Retailers seeking to overcome digital transformation challenges can leverage these AI-driven tools to improve operational efficiency, enhance customer satisfaction, and ultimately drive profitability.
The industry will closely monitor the implementation of these AI-powered tools as they shape the future of retail operations and customer experiences.
