Latest news with #MichelleGrant
Tahawul Tech
15-04-2025
- Business
- Tahawul Tech
75% of retailers say AI Agents will be essential to compete
Retailers are feeling pressure as costs mount, customer expectations rise, and technology gets increasingly complex, according to a new report from Salesforce, but AI agents offer a path forward. In fact, three out of four retailers globally believe AI agents, a type of artificial intelligence (AI) that can autonomously take action across business systems, will be vital for beating the competition within a year. Retailers face pressure from all sides Rising customer acquisition costs and mounting returns are squeezing retailers' margins as they also navigate inflation, competition, and consumers' evolving behaviours and preferences. To efficiently serve customers across vast and expanding touchpoints, retailers' top two strategies are AI and unified commerce, a concept Salesforce champions as a way to drive revenue without adding operational costs. 'When retailers connect their sales channels, customer data, and operations in one platform, they create seamless shopping experiences both online and in-store', said Michelle Grant, Director of Retail Strategy and Insights at Salesforce. 'This unified approach boosts productivity and drives growth throughout the business'. Meanwhile, the shopper journey gets increasingly complex Consumers' shifting behaviours lead to increasingly complex shopping journeys. While physical stores remain vital, their purchase share is declining — from 45% in 2024 to a projected 41% by 2026. Digital spending is fragmenting across a constellation of marketplaces, retailer websites, brand sites, and delivery apps, rather than consolidating into a single channel. Retailers see AI agents as a way forward Retailers are deepening their commitment to AI, with 76% saying they're increasing investment over the next year. As adoption continues, customer service emerges as retail's top agent use case. Here, agents automatically respond to inquiries, track orders, and manage returns any time, day or night, so human reps can focus on higher-value interactions. Velia Carboni, CIO of Salesforce customer SharkNinja, described Agentforce, the agentic layer of the Salesforce Platform, as 'key to helping us build a community that keeps consumers coming back'. Beyond customer service, retailers anticipate agents to extend across many other tasks and departments — from optimising websites and marketing campaigns to training store associates and managing inventory. 'AI agents represent the next wave of retail AI innovation — digital labour that promises to reshape how retailers scale their workforces, serve and market to customers, and streamline operations', said Grant. AI has huge potential in the Middle East's booming retail sector, led by the UAE and Saudi Arabia. The UAE retail market is expected to reach a value of $61.89 billion by 2030, up from $44.38 billion in 2024[i], while retail sales in Saudi Arabia are predicted to reach $161.4 billion by 2028[ii]. 'AI, and particularly agentic AI, is set to play an increasingly important role in the region's dynamic and fast-growing retail sector', said Mohammed Alkhotani, Senior Vice President and General Manager, Salesforce Middle East. 'With customers becoming ever-more demanding across multiple touch points, it's vital that retailers can refine and utilise their data while also having a full view of their customers across all interactions, and the ability to communicate with them seamlessly. I'm optimistic that agentic AI will empower retailers in the Middle East to compete and thrive while also ensuring the retail sector grows to its full potential in line with national strategies'. Unified commerce boosts AI capabilities AI agents need access to data across retail systems to work effectively. With better, more unified data, agents can provide more personalized and real-time responses. But many retailers' systems together are disconnected, creating challenges for employees and shoppers alike. 81% of retailers say inefficient processes and technology drain store associate productivity. Meanwhile, 49% of shoppers have abandoned purchases due to friction in the ordering process. Fortunately, 86% of retailers have unified commerce initiatives underway. By connecting cross-channel and cross-departmental operations on a single platform, unified commerce improves efficiency and shopper experience — and helps power AI. Shoppers show readiness for the AI era The retail transformation isn't one-sided. Consumers are already exploring AI in their shopping journeys, with 39% of shoppers — and 54% of Gen Z — using AI for product discovery. Gen Z shoppers are 10x more likely than baby boomers to say they frequently use AI this way. For AI agents specifically, shoppers show strong interest in optimising loyalty points, managing returns, and more. Shoppers' #2 agent use case — customer service — aligns with retailers' own priorities. Younger generations are more open to agents taking initiative: 63% of Gen Z shoppers are interested in agents purchasing items on their behalf. For shoppers to embrace AI agents making decisions on their behalf, trust is essential. When asked what would increase their trust in agents, shoppers ranked these factors highest: Data privacy and security protections Ability to easily turn it off/on Require approval before any purchase Transparency over how data is used Available human customer service backup 'The data is clear: retailers and shoppers are both moving toward an AI agent future', said Grant. 'But success depends on addressing both sides of the equation — building the connected technology foundation retailers need while delivering the trust and transparency shoppers demand'. More information: Read the full Connected Shoppers Report Learn more about Salesforce Retail Cloud Image Credit: Salesforce
Tahawul Tech
04-04-2025
- Business
- Tahawul Tech
New data: Gen Z embraces AI for social media spending
Gen Z is fuelling a social shopping explosion, with 39% now having purchased and 76% having discovered products on social media platforms, according to Salesforce's latest Connected Shoppers Report. Why it matters: The future of retail hinges on capturing the market for Gen Z, a demographic group born between the mid-to-late 1990s and early 2010s that is expected to command up to $9 trillion in global spending power by 2034 – more than any other generation. Social media shopping — a fragmented landscape comprised of dozens or even hundreds of platforms like TikTok, Instagram, and YouTube — is a key battleground. Retailers need a deeply unified commerce platform that combines AI capabilities, a centralised data foundation, and seamless application interoperability to manage these increasingly complex shopping journeys. Driving the news: 53% of all shoppers now discover products through social platforms, up from 46% in 2023. Gen Z is leading the charge, with 76% using social media to find products. While YouTube dominates overall, TikTok is a Gen Z hotspot, attracting 40% of younger shoppers compared to just 4% of Baby Boomers, a demographic group born between 1946 and 1964. What they're saying: 'Social commerce is the latest channel for digital spending that is fragmenting across a constellation of marketplaces, retailer websites, brand sites, and delivery apps, rather than consolidating into a single channel', said Michelle Grant, Director of Retail Strategy and Insights at Salesforce. 'Brands that fully embrace its potential will be in prime position to capture their share of the growing Gen Z market'. The AI effect: Gen Z is also adopting AI to find and evaluate products at a much higher rate. More than half (54%) of Gen Zers have used generative AI to discover and evaluate a product, versus 39% for the total population. Gen Z shoppers are also 10x more likely than baby boomers to frequently use AI to discover new products and 2.7x as likely to want product recommendations from AI agents (63% vs 23%). Between the lines: The Salesforce Platform provides a comprehensive suite of solutions to manage social shopping in the era of agentic AI. It integrates Salesforce's trusted digital labour platform, Agentforce, the Data Cloud hyperscale data platform, and applications like Commerce Cloud into a cohesive solution that is context-aware and scalable. This enables retailers like Saks to target specific demographics, optimise marketing campaigns, and deliver seamless customer journeys across all social channels with digital labour. 'The deeply unified Salesforce Platform empowers businesses to engage customers across every touchpoint, from TikTok to YouTube, maximising reach and driving sales. And with 24/7 digital labour enabled by the Platform's agentic layer, Agentforce, companies can manage these omni-channel journeys at scale – without adding significant headcount,' Grant said. More information: Read the full Connected Shoppers Report Learn about Salesforce Retail Cloud Image Credit: Salesforce
Arabian Business
03-04-2025
- Business
- Arabian Business
Gen Z drives social commerce boom as spending power set to reach $9tn: Report
Social media platforms have become the new shopping centres for Gen Z, with 39 per cent having made purchases and 76 per cent discovering products through these channels, according to Salesforce's latest Connected Shoppers Report. The findings highlight the growing importance of social commerce in capturing the Gen Z market—individuals born between the mid-to-late 1990s and early 2010s—who are projected to command up to $9 trillion in global spending power by 2034, surpassing all other generations. 'Social commerce is the latest channel for digital spending that is fragmenting across a constellation of marketplaces, retailer websites, brand sites, and delivery apps, rather than consolidating into a single channel,' Michelle Grant, Director of Retail Strategy and Insights at Salesforce said, adding 'brands that fully embrace its potential will be in prime position to capture their share of the growing Gen Z market.' Gen Z 10 times more likely than boomers to use AI for shopping The report reveals that 53 per cent of all shoppers now discover products through social platforms, up from 46 per cent in 2023. While YouTube remains the dominant platform overall, TikTok has emerged as a particular favourite among Gen Z, attracting 40 per cent of younger shoppers compared to just 4 per cent of Baby Boomers. This shift towards social commerce presents challenges for retailers, who must now navigate a fragmented landscape comprising dozens or even hundreds of platforms including TikTok, Instagram, and YouTube. Gen Z is also adopting artificial intelligence at a higher rate to find and evaluate products. The report found that 54 per cent of Gen Zers have used generative AI for product discovery and evaluation, versus 39 per cent for the total population. Additionally, Gen Z shoppers are 10 times more likely than Baby Boomers to frequently use AI to discover new products and 2.7 times as likely to want product recommendations from AI agents (63 per cent versus 23 per cent). Salesforce suggests that retailers need a unified commerce platform that combines AI capabilities, a centralised data foundation, and seamless application interoperability to manage these increasingly complex shopping journeys. The company's platform integrates its digital labour platform Agentforce, the Data Cloud hyperscale data platform, and applications like Commerce Cloud to create a cohesive solution that retailers such as Saks can use to target specific demographics and optimise marketing campaigns. 'The deeply unified Salesforce Platform empowers businesses to engage customers across every touchpoint, from TikTok to YouTube, maximising reach and driving sales. And with 24/7 digital labor enabled by the Platform's agentic layer, Agentforce, companies can manage these omni-channel journeys at scale – without adding significant headcount,' Grant said.
Yahoo
26-03-2025
- Business
- Yahoo
Three in Four Retailers Say AI Agents Will Be Necessary For Competitive Edge by Next Year
Salesforce's annual Connected Shoppers Report showed that as 2025 chugs on, retailers have their eye on continuous progress with artificial intelligence initiatives. That technology will likely change and influence legacy processes, like customer service, loyalty and marketing, which retailers hope will entice and excite their shoppers. Still, the industry has work to do before it declares victory on its emerging technology prowess, even as consumers warm up to the idea of AI becoming a more integral piece of their shopping experiences. More from Sourcing Journal NYFTL Names 2025 Cohort Shaping Fashion's Future Byte-Sized AI: Walmart Announces Gen AI Merchant Tool; Oxford Industries Partners With Exotec What Makes Generative AI for Design Difficult to Conquer at Scale? Three-quarters of retailers said they believe AI agents—systems that can autonomously handle what are, today, human-led tasks—will be necessary to compete by 2026. Still, just over half of retailers are currently piloting the technology, while 43 percent of retailers are actively evaluating use cases for agentic AI and 4 percent of retailers lack any plans to integrate agents into their technology stacks. Michelle Grant, director of retail strategy and insights at Salesforce, said, despite the fact that most retailers haven't yet reached maturity with agents, their development and deployment is likely to proliferate quickly after pilot tests begin proving out results. 'Right now, we're seeing a lot of deployments, but [on] a smaller scale. As people test and learn, and once those tests come back, it's going to be scaled very quickly, and it'll differ by function. So, it's not necessarily [that] the whole company will be agentic first in the next two years, but certain functions [will],' Grant told Sourcing Journal. The stakes are high—six in 10 retailers said they feel excited about the promise of autonomous AI, and 67 percent of retailers said it would bring opportunities to their business. They project that customer service skills, merchant skills and marketing skills will be the top three retail-oriented use cases for the technology. That could extend to tasks like handling low-value customer returns, optimizing sales based on historical data or drafting consumer-facing marketing emails. And as that transformation continues, retailers have placed a solid amount of faith in AI-based technology. Ninety-four percent of retail customer service employees indicated that AI saves them time, and 93 percent of employees in that same group indicated their belief that AI will help organizations reduce customer service-related have indicated their excitement about agents, too. Seven in 10 consumers noted they have at least some interest in using AI agents to optimize their loyalty points, and 71 percent of consumers said the same about customer service questions. Those basic functions show the early promise of AI agents, but more advanced processes like buying products on behalf of consumers are also top of mind for some. Sixty-six percent of consumers said they would be interested in an agent purchasing items when they reach a target price or in purchasing high-demand items, like exclusive sneakers, before they sell out. Grant said that interest likely comes from consumers' distaste for consistently monitoring items. 'I already know what I want. I know the price. Just take that friction out for me,' she said. Despite the excitement around AI, barriers exist to fully implementing it. One of the usual suspects—cost of integration—is still high on the list as a hurdle. Grant said despite the financial and efficiency gains AI can offer organizations, persuading leadership to spend major dollars on such initiatives can still prove trying. 'The retail industry, in general, is facing so many different obstacles, from rising customer acquisition costs, [to] rising return costs, [to] dealing with what could be a more stringent tariff regime. To convince the board of directors that we need to embark on a years-long program to realize [AI's] benefits, it can be really tough given the short-term issues that need attention,' she said. 'Funding and implementing it takes time, takes money, takes human capital for a return on investment that may not be seen for another four or five years.' Part of the struggle over effectively implementing AI systems comes from disjointed data and existing technology systems. Salesforce's data shows that while nearly nine in 10 retailers have what's known as unified commerce initiatives—in essence, marrying the systems and data on the frontend, with the information and processes on the backend—only 15 percent have actually realized unified commerce's value. But Grant noted that figure will need to increase for solid AI implementation in many organizations. About three-quarters of organizations indicated that, in 2025, they will increase their AI-related investments and their data management investments. Grant said that, while those dollars should work in tandem, prioritizing data will help produce better AI outcomes. 'Data management has to come first. AI works on data, and if you have poor quality data, or you or you don't have enough of it, or you don't have the right amount of it, then the AI isn't going to give you results that are accurate or super meaningful or actionable. So it's really important to really have that data cleaned up, ready to go, accessible,' she said. As retailers adjust their strategies to further include AI, strong, convenient customer service will continue to be paramount to the retail experiences, particularly as consumer sentiment dives and shoppers remain price conscious in the face of economic uncertainties. Salesforce data shows that about three-quarters of shoppers switched brands within the past year. The top two reasons for their switches were high prices and poor customer service, with 66 percent and 43 percent of shoppers citing those hurdles, respectively. Grant said loyalty programs may become more important than ever in the coming months, as retailers work to keep their core customer bases engaged. 'With this kind of storm of issues—high customer acquisition costs, really low brand loyalty because of the cost of living crisis where people are switching retailers and brands and buying private labels to save money, plus more bottom-line pressure with the tariffs—loyalty programs are a really good strategy,' she agree. Among shoppers that belong to at least one loyalty program, 84 percent said those programs make them more likely to make another purchase from the same brand or retailer. The specific incentives that are most likely to draw consumers into a loyalty program include points at a retailer or brand, points at the brand or retailer's partner or sister companies, free shipping and more. But problems with loyalty programs remain. Even though 67 percent of retailers already offer a loyalty program, with 29 percent of retailers without one planning to bring one to the fore within the next two years, consumers still feel that existing programs take too long to accumulate points or that the rewards aren't worth the spending they have to do to receive them. Grant said as retailers begin evaluating their loyalty programs on a more frequent basis, those will be considerations they'll need to address to keep control of consumers' devotion. 'Retailers used to look at their loyalty programs and update them maybe every three years. But now, because they're so strategically important for first party data, for actual loyalty—and now fueling retail media networks—they're evaluating them every year based off of their own financial goals and customer feedback,' she said. Sign in to access your portfolio
