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From concept to consumer: Generative AI for retail

Unlocking GenAI value in retail and consumer products

In the retail and consumer products (RCP) sectors, Generative AI (GenAI) isn’t a future disrupter. It’s a present-day differentiator. Deloitte AI Institute™ survey results from GenAI leaders across these sectors reveal a clear imperative: Organizations that move with speed, intent, and structure will gain the edge.

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Key takeaways

  1. Most organizations are early in their adoption stages, signaling vast potential and the importance of building foundational capabilities now.
  2. Generative AI for retail is directed in functions relying on creativity, interpretation, and contextual decision-making, such as marketing and branding, AI customer service, e-commerce, and research and development.
  3. Some organizations are seeing early success, reporting tangible benefits in efficiency, personalization, and speed to market. This proving that even modest beginnings can unlock Generative AI value.
  4. GenAI is emerging as a true team sport across the organization, but meaningful transformation requires an executive leader as a team captain.
  5. Many organizations don’t understand what GenAI can do, where to apply it, and how to operationalize it. Achieving full potential will require capability building, education, and cross-functional alignment across the enterprise.

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The journey to Generative AI value

Our analysis outlines where RCP organizations are on the GenAI journey, along with expectations and risks surrounding adoption. Across the board, RCP leaders anticipate tangible benefits in both revenue growth and cost savings.

≥42% 

of respondents are in the initial stages of GenAI integration.

2.7x

expected mean ROI increase from GenAI investments.

50%

anticipate growing their GenAI budgets by 10% or more.

Quick wins for GenAI use cases

What are organizations already doing in terms of AI customer service, intelligent marketing, and beyond? Explore quick wins below and learn about fast followers in the full report.

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Hyper-personalized shopping assistants and targeted promotions

Recommendations and bundles tailored to the customer’s shopping history, preferences, and context, with dynamic descriptions and visuals.

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In-store clienteling for more informed and engaging interactions

GenAI assistants provide quick access to customer profiles, sales performance, inventory levels, store policies, and task prioritization.

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Audience segmentation, brand monitoring, and sentiment analysis

Streamlining routine tasks and automating segmentation, targeting, brand monitoring, and sentiment analysis to boost agility.

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Real-time responses and automated ticket triaging

Faster, more precise customer responses, with more efficient categorization and routing of requests to accelerate issue resolution.

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Data analysis to accelerate R&D and innovation

Synthesizing vast amounts of structured and unstructured data into polished, actionable analytics to speed innovation and experimentation.

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A preview of emerging use cases as fast followers

Beyond these quick wins, emerging applications of GenAI include sourcing, warehouse automation, forecasting, and more.

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Realizing the potential of Generative AI for retail and consumer products

For RCP companies to realize GenAI’s full potential, they should first put a well-thought-out AI strategy in place, enabled by four strategic pillars.

Realizing GenAI’s potential starts with a clear North Star strategy that defines where and how value will be created. GenAI should be deployed where it drives real business value, not just where it’s possible. RCP leaders should articulate the ambition, prioritize business outcomes, and establish measurable value metrics that tie GenAI efforts to enterprise objectives.

A focused, results-driven strategy ensures GenAI moves beyond the experimentation phase and becomes a sustainable source of competitive advantage for an organization.

To scale GenAI effectively, RCP organizations should establish a disciplined and value-oriented intake process. High-priority use cases support core value drivers such as revenue growth, operational efficiency, employee productivity, and customer experience enhancement. Prioritize with a use-case evaluation framework that addresses key questions about value, feasibility, and risk:

  • Does the use case align with strategic business goals?
  • Does it generate tangible, measurable ROI?
  • How can we optimize investments and avoid duplication across functions?

Use-case value should align growth, profitability, and experience. See sample metrics for each in the full report.

RCP organizations should pursue holistic capabilities of the AI spectrum to achieve value from their efforts, investing in key areas to turn strategy into sustained execution:

  • Talent: Workforce training in AI fluency to ensure employees can use, trust, and benefit from GenAI.
  • Partnerships: A robust partner ecosystem to address gaps in vendor capabilities and enterprise requirements.
  • Capabilities: A well-oiled delivery engine to make GenAI a sustained, enterprisewide capability rather than a series of disconnected experiments.

Beyond that, delivery should not be about deploying technology; it should be about empowering people.

Governance is a foundational enabler, not a constraint. It is required to ensure trustworthy, reliable, and compliant GenAI applications without stifling innovation. Effective governance should go beyond traditional oversight, with a multidisciplinary model to address the unique risks and obligations of GenAI.

  • Legal
  • Compliance
  • Risk
  • Tax
  • Cybersecurity
  • Leadership

Organizations should elevate governance as a strategic differentiator that enables trust, protects brand equity, and supports long-term value creation. When clear policies, controls, review processes, and accountability structures are in place upstream in the GenAI life cycle, teams can adopt Generative AI for retail and consumer products with confidence and clarity.
 

The time is now

Generative AI for retail and consumer products is a powerful catalyst transforming the space

To fully harness its potential, RCP organizations should approach implementation with a clear strategy, targeted use cases, scalable delivery infrastructure, and robust governance. Those that do will likely not only unlock meaningful business impact and operational efficiency today but also position their enterprises for sustained leadership in an increasingly AI-enabled world.

 

The Deloitte AI Institute

We collaborate with academic groups, startups, entrepreneurs, innovators, mature AI product leaders, and visionaries to explore AI risks, policies, ethics, and use cases. Access our full body of work and join our live events for more.

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Get in touch

Kevin Byrne

Kevin Byrne

Principal | US RCP AI Leader | Deloitte Consulting LLP
+1 617 314 4386
Saurabh Vijayvergia

Saurabh Vijayvergia

Managing Director
+1 312 536 4169
Brian McCarthy

Brian McCarthy

Principal | Retail strategy and business transformation | Deloitte Consulting LLP
+1 212 313 1894
Ed Johnson

Ed Johnson

Principal | Deloitte Consulting LLP
+1 305 372 3104
Ian Thompson

Ian Thompson

Principal | Deloitte Consulting LLP
+1 617 585 5960

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Acknowledgements: We would like to thank our team of professionals who brought this report to life, including Apurva Limaye, Vignesh Ramdas, Nick Martindale, and Rigzin Lhatoo.