Generative artificial intelligence has the potential to transform businesses in two key ways: automating operations and increasing revenue.
While much of the focus in 2024 will still be on operational improvements, next-generation AI tools are expected to improve revenue and open up new revenue opportunities.
Automate operations
In 2023, McKinsey & Company willThe economic potential of generative AIthe company estimates that “generative AI could create between $2.6 trillion and $4.4 trillion worth of annual value globally across 63 use cases.”
In the retail industry, the expected “value,” or cost savings, could ultimately reach $240 billion to $390 billion annually.
The economic potential of generative AI
Generative AI’s workflow and automation capabilities can streamline processes within your organization. For example, retailers are currently using generative AI to Product Descriptionmarketing materials, interactive chatbots, and even product search functionality.
Generative AI tools can convert long video Convert it into short videos for YouTube, Reels, TikTok, and X, or reuse it for text-based blogs and social media posts.
“Current generative AI and other technologies have the potential to automate work activities that take up 60 to 70 percent of today’s employees’ time,” the authors of the McKinsey report wrote.
The result is employee promotion. productivityallowing artificial intelligence to focus on relatively important or complex tasks that it cannot or should not manage.
However, automating operations is only the first step.
increase in revenue
Generative AI can also increase revenue. The McKinsey report provides an example.
- Improves search engine optimization. Gen AI helps marketers achieve higher conversions. organic search Through good page titles, image tags, and URLs.
- Increase the probability of selling Create comprehensive consumer profiles from structured and unstructured data and suggest actions to improve engagement based on customer preferences.
- Improve lead development Sync product information with customer profiles and create discussion scripts to drive sales conversations, follow-up, and lead nurturing.
- Strengthening data utilization Interpret multiple sources such as customer feedback and behavior to inform marketing strategies.
- enhanced design By selecting and using better materials and optimizing manufacturing, aesthetics and design for market appeal.
- Product testing and quality has improved. Generative AI shortens testing periods, accelerates trial phases, and accelerates product time to market.
In short, generative AI promises to bring instant operational efficiencies to businesses and improve revenue. Distributors who optimize both areas can reduce costs, enable sales growth, and gain an advantage in a rapidly changing market.
