CEO Today Global Awards 2024 - COUNTRY - - 24 - the only way true personalization becomes economically viable for businesses. This is where Firework’s AVA product, along with ChatGPT and more nuanced innovations from technology titans like Google/YouTube, Bytedance/TikTok, Microsoft, and others will drive huge investments from institutional investors and competitive advantage as well. Smaller, more nimble startups (albeit growing rapidly) will also change the connected commerce landscape, as firms like OpenAI, Anthropic, Mistral AI and their exponentially enlarging competitor list will also thrive, but only one or two will ultimately dominate their markets. Just last week, Elon Musk’s generative AI startup, xAI, announced a $6 billion round valuing the company at $24 billion post money, which included several of Silicon Valley’s most prominent Venture Capital and Private Equity firms. Deployed prudently among fiscally responsible leadership who understand their fiduciary duty back to those investors, the combination of the right blend of entrepreneurs, creators, operators, and strategic partnership leaders within these businesses could put them on a trajectory to becoming the next trillion-dollar club market cap member. That’s how influential AI will be across a combined B2C and B2B TAM that’s infinite. The future of video commerce in modern retail is shaping up to be a transformative force as well, integrating advancing technologies like augmented reality (AR) and virtual reality (VR), but it’s been this market’s investments in AI to enhance and personalize the shopping experience that will accelerate it most. Below are a few key insights into what I think we can expect: E-Commerce Integration: Retailers will continue to integrate video commerce as a core element of their strategy, focusing on creating a seamless customer experience both online and in physical stores, understanding that AI’s contribution to video commerce can drive efficiency across content creation, data-led consumer market knowledge, personalized targeting, and segmentation. Unified commerce software, logistics, supply chain, last mile delivery, media buying, and L&D will also be enriched by these advancements, as well as every other partnership channel they rely on as part of influencing their JBPs. That’s why selecting strategic partners with access to significant capital, top engineering talent, and iterative product portfolios will become even more crucial for enterprise retailers and brands. Omnichannel Shopping & Retail Media: The concept of ‘Phygital’ shopping, which blends physical and digital experiences, is expected to become the norm. This means a connected retail environment where the boundaries between online and offline shopping are blurred. GenAI merging personalized content with RFID for geo-location purposes will play a pivotal role in bringing all touchpoints of a customer’s path to purchase to life more efficiently. As retailers leverage these communication means, the channels through which brands can target them across the retailer’s consumer touchpoints with personalized media expands as well. This will drive the growth and investment in retail media exponentially. Personalization at Scale: Stores of the future will likely offer highly personalized experiences, with AI-created 1:1 digital sales associates embedded within the retailer’s app knowing customer preferences as well as a close friend or personal stylist might. This will include personalized product recommendations and shopping experiences tailored to individual needs at a scale never previously obtainable. Live Commerce: The rise of live commerce, combining e-commerce, live video streaming and AI, will become a must-have within the MMM and KPI measurement to meet the consumer’s desire for an immersive shopping experience and drive loyalty. It allows retailers to showcase their products and interact with customers in real-time. A catalyst will be historically slower adopting markets, potentially similar to the UK and US, shifting budget allocation previously earmarked for high-cost, inefficient, PGC often endorsed by a celebrity for more authentic means of UGC, unlocking content created at scale by leveraging that which can be created and rewarded to loyal customers, in-store sales associates, those with the highest brand affinity, and product or service expertise. Investment in Technology: Significant investments and acquisitions will shift from opening new brick-and-mortar stores to enhancing technology that supports video commerce and other digital shopping experiences, many of which will contain a blended AI functionality. These investments will span markets, including those made by
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