When Joseph Weizenbaum designed the first generative AI model in 1966, no one could have predicted its impact. Fast forward, 60 or so years, and the technology has quickly been adopted by enterprises eager to increase efficiency.
And the retail sector is no exception as generative AI has massively impacted everything from supplier negotiations to the consumer shopping experience.
To understand how Fortune 500 retailers maximize the ROI of generative AI, we caught up with Brad Thompson, the Senior Vice President of Data Sciences at Target on the Data Humanized Podcast. Here are the key takeaways from his discussion with Data Humanized Host, Mark Palmer.
The retail industry sits on vast amounts of data, which makes the use of generative AI and data science models particularly exciting.
With so many data points to analyze, from web search queries to customer support chats, generative AI:
Generative AI integration at Target didn't just happen miraculously. During the initial adoption, many employees at Target didn't quite fully understand how to leverage generative AI in their role, so this workforce skills gap was addressed with training.
Even though most of the Target employees Brad works with have a technical background, generative AI is still a relatively new concept. It’s a technology that has a learning curve and requires a mindset shift from even the most technical teams.
Initially, some of Target's engineers struggled to use generative AI because they treated it like a search engine. If an engineer had a question on how to perform a task, they might ask the generative AI tool to provide a step-by-step solution instead of asking it to accomplish the task itself.
Brad’s experience at Target highlights why:
To keep generative AI adoption and integration moving forward, it’s important to nurture generative AI early adopters and evangelists. An internal community of experts is beneficial as it helps:
Brad notes the emphasis that Target places on mentorship for its technical talent:
With workforce disengagement at an 11-year low, it’s unlikely that employees are proactively looking for innovative solutions to organizational challenges. However, that can change if you prompt the workforce.
Take Target's 50 days of learning for example. The initiative allows employees to spend up to 50 days a year investing in their learning and development. On the podcast, Brad elaborated on Target's 50 days of learning program by explaining:
Generative AI has already reshaped retail operations, unlocking new efficiencies and innovation across the value chain. From supply chain management to supplier negotiations, the future of retail will be dominated by those who embrace generative AI.
As Brad Thompson shared, the key to maximizing generative AI’s ROI lies not just in adopting the tools but in equipping the workforce with the skills to leverage them effectively. With ongoing training, mentorship, and a culture of learning, you can increase your competitive advantage and stay ahead of other retailers.
Increase your AI readiness with the How to get started with generative AI toolkit.