Chatbots support retail employees

Retailers must perform tasks with increasing efficiency. To meet this demand, management teams are equipping their employees with tools that support them in their work. Artificial intelligence (AI) has emerged as a key technology in this regard. Since the introduction of ChatGPT by OpenAI at the end of 2022, the use of conversational generative AI, in particular, has experienced a remarkable upswing in the labor market.

Large retail chains, online retail platforms and brands such as dm, REWE, Walmart, JD.com and L'Oréal are increasingly using advanced language AI models, known as large language models. They are often designed to improve customer service by answering frequently asked questions or providing initial information at any time.

dm-drogerie markt introduced dmGPT, an advanced AI system based on the GPT models, in summer 2023. This system gives employees access to a comprehensive knowledge database that speeds up the response to customer inquiries and internal process questions.

So far, dm staff have used dmGPT to edit texts, provide programming support or create social media posts, for example. Despite all the enthusiasm about the possibilities of the AI tools, the skills of the employees are irreplaceable, according to Roman Melcher, dm Managing Director and responsible for the IT/dmTECH department: "At dmGPT, we follow the 'human in the loop' principle, so that human decisions regarding publications, reuse, checks and approval of results are retained."

The fashion discounter Takko Fashion uses a company chatbot at its headquarters in a similar way. Bastian King, CIO of Takko Fashion, is hoping for growing efficiency in internal work processes: "In future, we will continue to develop our chatbot in-house and enrich it with company-specific data and functions in order to be able to exploit further decisive potential of generative AI."

REWE digital has launched an innovative project with "goRobert", a hyper-realistic avatar of management member Robert Zores. This "knowledge avatar" supports new employees during onboarding by simulating lifelike interactions in a holographic box and providing answers to industry-specific questions.

The aim of the project is to create an AI assistant for employees that is available at all times and not only provides knowledge and takes on tasks, but also enables natural communication. The AI assistant complements the mentoring offer during the induction phase. Robert Zores, Chief Digital Innovation Officer at REWE digital, reports positive feedback from users: "They particularly like the fact that the avatar can be asked various questions anonymously and without judgment, which may not always find a place in a large group during onboarding: These questions include, for example, personal concerns such as information on childcare, further training opportunities or mental health programs."

Many companies are also using customized AI models for creative tasks that were previously reserved for human employees. In May 2024, cosmetics manufacturer L'Oréal announced the deployment of its "CREAITECH GenAI Beauty Content Lab". Here, generative AI assistants help the creative teams to create visual beauty content for the L'Oréal brands - in compliance with the respective brand and corporate design specifications.

Walmart introduced the generative AI tool "My Assistant" for campus employees in the USA in 2023. Donna Morris and Cheryl Ainoa (Executive Vice Presidents at Walmart), who report on this on LinkedIn, have observed that employees feel more motivated and more involved in the innovation process through the use of AI. This increases employee loyalty and satisfaction.

The rapid development of AI models is leading to fears that human staff could be replaced. Walmart's EVPs disagree: “GenAI can help us work faster and more efficiently, but it also has limitations: it lacks judgment, has a limited understanding of context and is only as good as the data it’s trained on.” People are still needed for truly innovative approaches.

The ongoing integration of AI in the retail sector offers immense opportunities to increase efficiency and improve the employee and customer experience. There are few tasks in the day-to-day work of a retail company that AI models cannot take over, learn or at least support. And yet the development of these technologies is only just beginning. In the future, AI will play an even greater role in the strategic orientation of retail companies in order to gain a competitive edge. AI applications can also be helpful in overcoming the shortage of labor and skilled workers. It is important to involve staff successfully in these processes at all levels.

Sources: Press release dm März 2024 und Press release dm August 2023, Press release REWE Group, Press release Takko Fashion, Press release L’Oréal, LinkedIn article by Donna Morris from Walmart