Artificial intelligence (AI) has become a prominent topic, sparking debates about its potential impact on society. A recent report delves into the use of AI to forecast a bleak future for the UK high street. Although some physical stores have shown signs of recovery after the pandemic, the long-term outlook for brick-and-mortar retail remains uncertain. The report suggests that large e-commerce-based physical stores are poised to dominate the UK high street within the next five to 10 years.
In an effort to predict the future of the British high street, money-saving website Savoo employed AI to simulate various scenarios. The results indicate that more than 11,000 chain stores could vanish by 2030, with London alone losing nearly 2,400 of them. This raises the possibility that online retailers like ASOS, Etsy, and Amazon, utilizing automated technology, could potentially step in to replace some of these stores. However, it is important to note that early experiments in this area, such as Amazon’s 4-Star shop chain, have not seen overwhelming success.
One of the major concerns lies not only in the evolution of retail itself, but also in the potential consequences for employees. According to a study by KPMG and IT services provider Harvey Nash, AI has the potential to replace 20% of retail jobs by 2024. The Office for National Statistics estimates that over 65% of retail cashiers and nearly 72% of shelf fillers are at risk of being replaced by automation.
Ed Fleming, the managing director at Savoo, emphasizes the need for businesses to quickly adapt in order to survive in the face of changing consumer habits. The rise of online shopping and the convenience it offers has already resulted in the downfall of several high-street giants. It is clear that the retail industry must embrace AI and other digital technologies to maintain competitiveness in this evolving landscape.
As predictions of a digital future for the UK high street become more prevalent, retailers must explore innovative ways to integrate physical and online shopping experiences. By seamlessly bringing together the advantages of both realms, retailers can develop an omnichannel strategy that caters to the evolving needs of consumers. Moreover, investing in AI-powered technologies can enhance customer personalization, automate inventory management, and optimize supply chains.
The potential benefits of AI in the retail sector go beyond simply replacing jobs. AI can help retailers analyze large volumes of consumer data, predict trends, and optimize pricing strategies. Additionally, AI has the capacity to improve operational efficiency, streamline processes, and provide customers with a more seamless shopping experience.
Although the future of the UK high street may be uncertain, it is crucial to view AI as a tool that can facilitate growth and transformation. Retailers must take a proactive approach in embracing technological advancements and adapting their business models to secure a place in the digital era. With the right strategies in place, the AI-driven future of the UK high street may not be as bleak as initially predicted.
Useful links:
1. Further: Transforming the UK High Street with Artificial Intelligence
2. Retail Gazette: How AI Powered by Human Touch Will Make Retail Great Again
