The AI Revolution in Retail: Opportunities and Risks

PYMNTS.com December 8, 2023

The rise of large language models (LLMs) like ChatGPT has thrust generative artificial intelligence (AI) into the driver’s seat of retail technologies, prompting brands across industry subsegments to reassess their strategies. This development follows retailers’ years-long efforts to leverage AI’s earlier iterations to support novel customer experience initiatives. However, the latest applications of the technology come with some significant caveats.

Generative AI can foster fraud, for example, not infrequently in the form of customer impersonations or fake websites, highlighting the need for greater consumer and retailer vigilance in the age of AI. As the technology improves the precision of retail marketing and sales initiatives, stakeholders should embrace its transformative power with caution. Likewise, regulators should refine their responses to its...

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