Friday, March 17, 2023

Grocery Stores Welcoming ChatGPT are You


Do you have junior high school children or high school kids?  If not, you may not know what ChatGPT is.  According to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®, ChatGPT is a ChatGPT is a “natural language processing tool driven by AI technology that allows you to have human-like conversations and much more with a chatbot. The language model can answer questions, and assist you with tasks such as composing emails, essays, and code.” Simply put your kids can ask it a question using their own voice and it gives them the answer.

While junior high, high school, and college students are using ChatGPT to write papers, get answers to test questions, the rest of us are trying to figure a way to leverage this technology to help customers while saving our companies money. 

A new survey indicates that grocers are jumping on the AI trend and ChatGPT. A new survey of grocery retailers indicates that grocers are ready and willing to experiment with ChatGPT, the chatbot AI technology being rapidly adopted across many industries and companies.

So, the survey, is from grocery data company Grocery Doppio, insights firm Incisiv, and digital commerce and fulfillment solutions Wynshop, polled grocery industry executives, shoppers, and additionally pulled in shopping data. 

In addition to asking about AI in grocery, the survey further touched on digital basket size increase and decline of third-party share of sales.

Key findings from February’s “State of Digital Grocery Performance Scorecard” include:

·         67% of grocers say they have discussed ChatGPT at senior level meetings

·         82% of grocers consider AI a necessity to remain competitive in the future

·         59% of grocers will test an AI solution in 2023, while 13% will spend non-budgeted funds to do so

Grocers believe that AI will have the greatest impact on inventory forecasting, supply chain management, and pricing/promotions, while ChatGPT/large language models will affect customer service, product discovery, and store associate tools. 

Yes, there is more, additional highlights include: 

Digital basket size grew, even as digital’s share of market slipped 

·         Compared to February 2022, digital basket size grew 47.2%, representing an average of 5 items more

·         Digital sales saw 2.1% growth from $9.6 to $9.8 billion between February 2022 and February 2023, but digital’s share of the total grocery market slipped from November 2022’s high of 17.1% to just 13.8% in February

Third-party providers continue to lose market share

·         Grocery sales through third parties fell to $1.8 billion in February 2023, down from $2.7 billion in February 2022 and $1.9 billion in January 2023

·         The balance of digital grocery sales were taken by grocers’ apps (5.9%), and grocers' websites (75.8%)

Share of grocery pickup sales continues to rise

·         Curbside/pickup sales grew by 8.3% from February 2022 to February 2023, rising from $4.8 billion to 5.2 billion, YOY

Gaurav Pant, chief insights officer of both Incisiv and Grocery Doppio, stated, “ChatGPT has taken the world by storm, and grocers are no exception,” ... “Grocers acknowledge they need advanced analytics and AI and are willing to experiment and invest in building those capabilities. Those that focus on high-impact use cases like inventory optimization or can figure out a better search and recommendation experience using LLMs have a chance to leapfrog their peers.”

For international corporate presentations, regional chain presentations, educational forums, or keynotes contact: Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions.  His extensive experience as a multi-unit restaurant operator, consultant, brand / product positioning expert, and public speaking will leave success clues for all. For more information visit, FoodserviceSolutions.US or call 1-253-759-7869

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