The content supply chain's AI awakening: Retail insights

AI is increasingly part of a retail organization’s DNA, with budgets dedicated to AI overall expected to rise by 19%.

But budgets are not just increasing, they’re diversifying. We’re seeing a 51% surge in AI budgets outside of traditional IT functions, signaling a trend toward embedding AI across operations. Not only that, retail industry executives project that AI’s contribution to revenue growth will increase 135% from 2023 to 2027.

Retailers, always focused on sales and customer experience, recognize the power of compelling content. For example, product showcases and personalized experiences can be enhanced by gen AI’s ability to create and refine content at scale. Gen AI is poised to revolutionize content supply chains (CSCs).
 

The overwhelming enthusiasm, with 95% of retail executives believing gen AI is a game-changer overall and 68% more excited than just one year ago about its CSC impact, speaks volumes. 

Retailers need gen AI-powered CSCs to transform their content landscape. It’s not just about efficiency; it’s about crafting richer, more engaging customer journeys.

If you haven’t already, buckle up and get started!
 

Gen AI and CSCs: The winning formula for intuitive content

Fundamentally, retailers aim to maximize sales and cultivate a seamless customer journey.

This aligns well with the CSC focus on effective product presentation, informative content, and persuasive messaging, with an emphasis on curating appealing product selections and fostering engaging shopping environments. The integration of gen AI into these CSCs is yielding notable outcomes. Our research reveals improvements in return on ad spend, increased generation of sales and marketing qualified leads, and amplified social media interaction.
 

Retail entities are finding the confluence of gen AI and CSCs particularly potent, and they’re experiencing greater impact compared to other sectors. 

This suggests a unique synergy stemming from the retail industry’s inherent customer-centricity and gen AI’s capabilities. It’s a powerful combination driving tangible results.
 

Retailers and gen AI: Optimizing toward hyper-personalized content

Retailers’ budget allocation to the creation and delivery of content is expected to grow 42% from 2023 to 2026, and this speaks volumes. It’s a strategic shift, not just a casual uptick.

Beyond the increased spending, retail organizations are already realizing a solid ROI of 23% from their existing CSCs, demonstrating the effectiveness of well-structured content strategies.
 

Now let’s dream: think of the potential when gen AI is integrated into these already successful systems. AI’s capacity to automate, hyper-personalize, and optimize content could amplify returns significantly.

This performance boost could drive substantial returns. AI’s capabilities, particularly in automation, personalization, and content optimization, suggest we can expect even greater efficiency going forward. It’s a clear indication that leveraging generative AI to optimize CSC investments can drive the future of retail content.
 

Download the report to learn more about how gen-AI-fueled CSCs can help retail organizations drive competitive advantage—and receive targeted actions. 
 

Interested in content supply chains beyond the retail industry?

To learn more about our content supply chain findings across industries, visit our global report page. To learn more about content supply chains in the consumer products industry, visit here.