THE RETAIL REVOLUTION

THE OPPORTUNITY:DIGITAL HIERARCHY OF NEEDS

I want to…Feel & share

I want to…Learn, buy, know, go, do

Emotion & Action

Micro Moments

Basic Connectivity

ELECTRICITY TOOK AWAY MANUAL LABOUR

AI IS TAKING AWAY COGNITIVE LABOUR

AI AS A SUITE OF TECHNOLOGIES

MACHINE

LEARNING

LANGUAGE

PROCESSIN

G

VOICE

ACTIVATION

IMAGE

RECOGNITION

AUTONOMYROBOTICS ECOSYSTEMS

AITHREE AREAS OF AI APPLICATION

MARKETING

WITH PROGRAMMATIC

CS

INFLUENCER

ENGAGEMENT

AIMARKETING

OFSERVICE

EXPERIENCES

CAMPAIGNS

VOICE CAMPAIGNS

AIMARKETING

TOSEO

VOICE SEARCH

ECHO LOOK

MARKETING OF AI:FROM NEWS TO ECOMMERCE

THE CHALLENGE –CREATING COMPELLING AI EXPERIENCES

THE RESEARCH/WHAT WE DIDOMD and the Goldsmiths research team at the University of London embarked on a dedicated research project

1- To understand consumer perceptions of, and behaviours with, artificial intelligence across different retail environments

2- To investigate the possibilities, potentials, and pitfalls of implementing bots in a retail environment

18Technologies

tested

13Markets

15,000+NAT REP

Respondents

6Subject Matter

Experts

1Hackathon

6Chatbots Created

WE ARE ALREADY USING IT

Consideration and use of AI

Q. Would you consider AI to be a part of your life?Source: OMD Snapshots, April 2017

Base: EMEA Total n=14960

12%7% 7% 4% 8%

14% 11% 11% 10% 13%21%

14%20%

25%

4% 8% 14%14%

12% 22%29% 32% 29%

33% 45%

47%

41%

61%61%

45%48%

58%50%

42%32%

42%26% 18%

19%

22%28% 25%

36%30%

16% 18% 18%26%

16% 19% 23%14%

Yes, I am already usingan AI device/app

Yes, I would like to getan AI device/app

No

I don't understand whatit is

22% OF EUROPEANS ARE ALREADY USING AI AND ANOTHER 41% WOULD LIKE TO GET AN AI DEVICE OR

APP

36%

23%

22%

20%

19%

18%

17%

15%

13%

9%

3%

TO UNLOCK THE FUTURE THERE ARE KEY BARRIERS TO OVERCOME

AI Barriers

I don't need AI

I don't trust the data collection of AI

It is easier to use my default option, such as manually searching on a web browser or calling a customer service desk

I don't understand the benefit of using AI

I don't think AI is safe

I need to be taught how to use it

I don't think the technology is developed enough

AI is too intrusive

I don't think the interactions are seamless or human enough

It's not accessible for me

Other reason

LACK OF PERCEIVED NEED & LOW UNDERSTANDING OF WHAT AI DOES ARE KEY BARRIERS FOR DOUBTERS

Q4a. Why would you not consider an AI capable device or app as being part of your life? Source: OMD Snapshots, April 2017

Base: Those that would not consider AI n=3779

AI TO DRIVE INTERSTING, NEW SERVICES & MORE CONVENIENT PURCHASES

Willingness To Share Data

Q8b How much would you be willing to give to have an AI Interaction? Source: OMD Snapshots, April 2017 Base: Total n=13,156 across those who understand AI

8%

21%

35%

36%

Ready to pay and share datafor a better service

Ready to pay, but not sharedata for a better service

Ready to share data, but notpay for a better service

Not ready to pay or sharedata for a better service

48%

43%

30%

28%

26%

I don’t trust how my data is being used

I don’t have enough control over the experience

It depends on the task

I don’t trust the platform (e.g. Facebook Messenger, Amazon Echo)

I don’t trust the brand providing the service

Reasons For Not Trusting AI

Q9. Thinking about AI interactions, please rate how important the following are to you on a scale from 1 to 10, where 1 is not at all important and 10 is extremely important.

Source: OMD Snapshots, April 2017

Base: All respondents understanding AI Total n=13,156

AFTER DATA CONCERNS, CONNECTION WITH A HUMAN IS ONE OF THE MOST STRONGLY VALUED ELEMENTS

-6%

-6%

-6%

-6%

-7%

-8%

-8%

-10%

-10%

-11%

-11%

-15%

-21%

-20%

-23%

-23%

72%

72%

72%

72%

70%

65%

65%

60%

58%

55%

54%

46%

42%

42%

39%

39%

Not important

Important

It allows me to choose what data it can access

It explains how it is using my data

You are informed that it is an AI interaction from the beginning

It tells me where my data is being stored

I am able to choose the language of the AI interaction

There is an opportunity to contact a human agent at any point during the interaction

It is able to adapt to the information I provide

It should be able to move seamlessly across different devices

There are buttons with pre-set options available so that it saves time communicating

It is able to identify what is in images

It is locally relevant

AI interactions should be humanised

It uses facial recognition to offer a better experience

It can detect emotions or sentiment and is able to adjust its tone

It is able to understand emojis and gifs

It uses images, emojis and gifs to express emotions and make interactions more fun

THE RIGHT COMBINATION OF AUTOMATION AND HUMAN INPUT - AUGMENTATION - DRIVES AI ADOPTION

Balance on where to place the human and where to let the AI take over

Virtual interactions allow the user to be part of the decision making and

experience for themselves, whilst saving time

Q. Looking at shopping categories, what types of AI assistance would you be open to?

Source: OMD Snapshots, April 2017

UK Total, Nat Rep across those who understand AI, N=1,000

DIFFERENT OPPORTUNITIES EXIST IN SPECIFIC SECTORS

22%17% 15% 14% 14% 13% 13% 13% 13% 13% 13% 12% 12% 12% 11% 10% 9% 9% 9%

Groceries(Food &Drink)

ConsumerElectronics

Health &Fitness

Restaurants Beauty &Personal

Care

Automotive Business &Finance

Fashion &Apparel

Books &Music

VideoGames

Medicine &Health Care

IT Software& Apps

Furniture &Decor

Luxury Events Toys &Games

Movies &TV

Travel Utilities

Assistance on making more informed decisions about my purchases (eg ethical products, nutritional info etc)

23% 21% 19%15%

10% 9% 9% 8% 7% 7% 7% 6% 5% 5% 5% 5% 5% 5% 3%

Beauty &Personal

Care

Fashion &Apparel

Health &Fitness

Medicine &Health Care

Groceries(Food &Drink)

ConsumerElectronics

Luxury Automotive Business &Finance

Restaurants VideoGames

Movies &TV

Toys &Games

Books &Music

IT Software& Apps

Events Furniture &Decor

Travel Utilities

Options based on my characteristics (i.e. skin tone, height, weight, etc.)

6%7%8%9%9%9%9%10%10%11%12%13%13%15%16%16%17%18%19%

Medicine &Health Care

UtilitiesAutomotiveToys &Games

Business &Finance

VideoGames

Furniture &Decor

Health &Fitness

IT Software& Apps

ConsumerElectronics

LuxuryFashion &Apparel

Movies &TV

Beauty &Personal

Care

EventsGroceries(Food &Drink)

Books &Music

RestaurantsTravel

Surprises me with new opportunities and discoveries

As we have the data, we

can train better AI to

understand different

environments and sense

contexts to have the

best interactions

possible.

FUTURE RETAIL EXPERIENCES WON’T BE ABOUT WHERE CONSUMERS DO THEIR SHOPPING BUT HOW THEY DO IT

THE APPLICATION –WHAT WE’VE LEARNT SO FAR

THINK AUDIENCE FIRST

WHAT WHEN HOW FREQUENTLY

Easy payment method

Customer service

Quick delivery

User-friendly online shopping experience

In-store experience

Seamless returns

Personalisation

58%

56%

52%

49%

37%

28%

18%

COMMIT TO TRANSPARENCY AND SHARED POWERS

48%

43%

30%

28%

26%

33%

44%

23%Trust AI

Neutral

Do not trust AI

Q5a. How much do you trust AI interactions? Q5b. Why do you not trust AI interactions? Base: Total n=13156 - all understanding AI Source: OMD Snapshots, April 2017

I don’t trust how my data is being used

I don’t have enough control over the experience

It depends on the task

I don’t trust the platform (e.g. Facebook Messenger, Amazon Echo)

I don’t trust the brand providing the service

POSITION YOURSELF TO ALLOW FOR FLEXIBILITY

TECH AGNOSTIC CLOSE TO THE BIG PLAYERS

BRING THE RIGHT SKILLS TO THE TABLE

AI TEAM

MKTG

SERVICEPRODUCT

CRM

PLAN LONG TERM

LAUNCH

SPRINT 1

SPRINT 2

SPRINT 3

MONTH 1 MONTH 3 MONTH 6 YEAR 2YEAR 1

IT’S HARD TO THINK OF A SINGLE TECHNOLOGY THAT WILL SHAPE OUR WORLD MORE IN THE NEXT 50 YEARS THAN ARTIFICIAL INTELLIGENCE

WIRED 2016