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‘AI is really about Augmented Intelligence’

By Retail4Growth Team | December 19, 2024

From being a creative ally, a personal assistant and a business enabler to being something that threatens to make us redundant, AI has come to mean many things to us today. What is its scope in the space of retail design and experience?  Retail industry expert Surender Gnanaolivu shares some interesting insights on this, and in the process sheds light on how retail designers can elevate their role in the whole scheme of things.  

Some terms gain so much currency in their abbreviated form that they lose half their allure in their expanded form! It’ funny and illogical, but true. And it possibly has everything to do with how the human mind processes and perceives these terms based on common usage. AI for instance is almost a buzzword today – many products or services are positioned as ‘AI driven’ for better market acceptability and the term has come to connote something that’s integral to many functions across businesses. But although we all know what AI stands for, we are not as yet ready to embrace the idea that ‘artificial intelligence’ is the basis or will be the basis for most business functions.

In fact, the question that’s generating much debate today is whether artificial intelligence can complement or replace human intelligence, at least for certain functions? In the context of retail design - an area primarily driven by human imagination, consumer behaviour and social metrics - all immeasurable aspects to a large extent – will AI really make a difference? Well, as most retail designers agree, what’s really relevant currently in the context of retail design and other creative areas, is the use and application of Generative AI tool.

Speaking about this, retail industry expert Surender Gnanaolivu, who is also the Chief of Strategy and Development at 4Dimensions Retail Design, says in his characteristically incisive way, while giving a new perspective to the expansion of AI, “AI should really be about ‘augmented intelligence’. In the context of retail design, I would say that in its current form, gen-AI tool is a great augmentation tool. But it’s not a replacement for the human mind, as it cannot ideate.”

As Surender points out, most Gen AI tools don’t have the capability as yet to understand commonly used terms in the design ethos, such as ‘Classic’, ‘Contemporary’, etc. Instead, these tools require specific descriptive inputs to generate possible visual options.

Augmented Tool for Visualisation

Elaborating on how to best augment AI as a visualisation tool, Surender adds, “If you use it right with the right prompts, then it can significantly improve efficiency. What takes you a full week can possibly be done in 45 minutes, because of the ease with which it can throw up visual options for different design concepts. But for this, one needs to have a mature understanding of design, and how it operates. Most importantly, we have to visualise it right in our mind. Gen AI tool can give variations of our own idea and also suggest new ones, but we have to use our own discretion finally.”

As Surender points out, the process of balancing AI-driven concepts with a close understanding of the context is particularly critical and complex in the retail space, given the multiple parts involved – the brand, the merchandise, the retailer and the consumer. “To be aligned with these needs while working on a physical store design is a role for the human mind, and is something Gen AI cannot do on its own. It’s just a tool that can process ideas and provide feedback adequately, provided we give the right prompts.”

Retail Designers as Visualisers of Customer Journey

Interestingly, the emergence of AI tools is also closely linked with how corporate brands are approaching their retail spaces, which in turn has a bearing on the retail design industry itself. With some big corporate brands choosing to go in-house for their retail design function by leveraging Gen AI tools, the role of retail design agencies and the question of creative authenticity attains significance. As Surender points out, this means understanding cultural/social context and visualizing the customer journey. “Visualising the customer’s in-store journey and accordingly strategizing the experience and design is where retail designers can really make a difference, which no Gen AI tool can do as yet.”

But this is the time, as he points out, for retail designers to be adaptable and open to working around clients’ growing need for value and cost optimization, while wanting to offer a unique and premium experience to their customers.

AI for Efficient Data Analytics

Beyond being a visualisation tool, AI also offers data-backed insights that can lead to efficient management of store operations, including solutions like fit-outs and lighting. Surendar says in this context, “In the past, store managers and project heads would have to manually monitor and keep track of their SKUs, fixtures, etc., but today by using AI and RFID based units, they can easily access data that can lead to better utilisation of these assets. For VMs too, AI backed data analysis helps in effective planning of their VM strategies.”

So, while AI at best is a visualisation aid for design and aesthetics, it can be a business enabler in terms of boosting in-store efficiency. Meanwhile, as Surender points out, there is a larger and more important aspect with respect to using AI, which has ethical and legal ramifications. And that is about creative ownership of design concepts and the question of copyrights. But even as we continue to explore these aspects and gain more clarity on them, it’s possibly time we started augmenting AI as an ally that frees us up to do what we can do best - imagine and create memorable experiences.

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