Accompanied by a combination of enthusiasm, hyperbole, doomsaying and questions over its perceived usefulness and efficacy, there’s no denying that generative AI is making its presence felt, for better or worse.
With so much discussion around the topic it can be difficult to cut through the noise and work out what’s actually important – and what is likely to remain relevant for businesses in the years ahead. Amid the rapid acceleration of AI tech over the last couple of years, at GDR we’ve been paying close attention to developments in this space, focusing on the tangible opportunities it presents while filtering out the hype.
Last week, I appeared at the NRF Nexus event in Los Angeles, California, where I spoke about the rise of empathic AI agents and the real business opportunities that these tools are unlocking. It’s one of my favourite events of the year, perfect for upskilling and networking, held at the glorious Terranea Resort in Palos Verdes, with amazing food and proper cocktails in a beautiful oceanfront setting.
AI fatigue and the true state of play
Despite being the hottest topic of the moment – or maybe because of that – I perceived widespread fatigue around gen AI among delegates at the conference, at least partly due to concern over where it’s going and the dangers involved, both for society and from a corporate regulatory and compliance perspective.
However, after my presentation, ‘Looking toward a post-app future: how empathic AI agents will take real-world action on consumers’ behalf’, many delegates I spoke to were excited to experiment with some of the empathic personal AI agents I’d demonstrated, waxing lyrical on the business opportunities they represent. Many delegates expressed surprise at how far things have already developed – far beyond their expectations.
While there is undoubtedly a lot of hype to contend with, the latest consumer-facing gen AI tools have developed sufficiently to the point that they can save businesses considerable time and resources, as long as they are deployed correctly.
Trust as a differentiating factor
AI was not the only topic of discussion, of course. There was general agreement among many of the client-side panellists at the conference that trust is going to be the key differentiating factor for brands when it comes to retaining loyalty in the future. This is not at all surprising in our post-truth era.
As we outlined in our Transformational Trends for 2024, as consumers contend with spiralling levels of misinformation and mistrust, brands must look to win back the narrative and reclaim trust by connecting customers with real communities and reliable content. AI can play a role here by providing more personalised experiences.
The dominance of e-commerce marketplaces
It was interesting to note the dominance of marketplaces as the most profitable e-commerce success stories, with China’s Temu and Shein being the clear trailblazers in terms of popularity for US customers. While personally I’m concerned at the environmental and human rights implications of these particular companies setting the bar for everyone else, their model is the one to beat.
Interested in hiring Kate to present to your team or at an event? Please contact rachel@gdruk.com to get a quote.
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