The Dawn of a Smarter, More Agile Future for Retail
For retailers, success in today’s market isn't about the ability to grow and scale, but rather the ability to be innovative and agile. Doing so requires precision: that means anticipating customer needs, responding quickly, and creating a personal experience for every shopper.
So, how can retailers achieve this level of agility and accuracy in today’s shifting retail landscape? You guessed it: artificial intelligence.
However, not just any use of AI. Specifically, the next phase in the progression of AI: reasoning-based AI and autonomous agents that can enhance intelligent, real-time decision-making that transforms business decisions for the better.
From Data Overload to Actionable Insights
Retailers have always relied on data, but traditional customer and inventory analytics aren't enough to keep pace in today’s environment. Today's customer journey consists of a complex web of physical stores, websites, apps, and social media, all of which generate a vast amount of multimodal data.
To effectively harness this complexity, reasoning-based AI, or an AI mechanism that uses available information to generate predictions, is needed to provide solutions.
This technology can be useful for interpreting data, connecting various insights, and delivering actionable recommendations. For example, in assortment planning, reasoning-based AI can enable retailers to move beyond generalized regional strategies to instead create hyperlocalized assortments that reflect local trends.
When paired with real-time decision-making, this allows retailers to adjust promotions hourly, rather than weekly or daily, in response to changing demand, weather conditions, or local events.
In TCS’ recent work with a large grocery retailer, we analyzed extensive datasets, which covered sales, inventory, and customer preferences, to optimize its product assortment and pricing. The outcome? A clear path towards reduced waste and increased sales. This showcases the real potential of data-driven reasoning via AI tools.
Automation to Empower Retail Teams
The promise of AI's future isn't simply limited to cutting costs through automated processes; AI can also enhance customer experiences and empower employees.
Specifically, autonomous agents can take on mundane everyday tasks, freeing up their human counterparts to focus on strategy and complex decision-making. By assigning routine tasks to autonomous agents, such as inventory checks, basic customer inquiries, or replenishment orders, it frees up human talent. Imagine store associates no longer burdened by repetitive tasks.
This would allow them to focus on what they do best: building relationships, providing personalized service, and creatively enhancing the customer experience. An AI-powered operation amplifies human creativity and empathy rather than replacing it.
The large grocery retailer experienced this firsthand; by automating stock management and order processing, its teams could prioritize customer engagement, leading to higher satisfaction and a more engaged workforce.
A Future With More Consumer-Retailer Trust
As retailers adopt new tools designed to empower employees and enhance customer processes, such as reasoning-based AI, consumers will increasingly become aware of how their data may be used.
Here, it's key that retailers introduce these technologies with a customer-first perspective by being transparent about how their data is safely being used to improve the shopping experience. AI can only work if it’s a trusted tool that benefits businesses and consumers alike.
We're entering a smarter, more agile future for retail. Companies that embrace technology like reasoning-based AI and autonomous agents can provide precision at scale, resulting in more personalized experiences, efficient operations, and empowered employees. Those who hesitate risk being left behind in a marketplace that values speed, intelligence and trust above all.
Retail’s next big leap will likely be defined by industry players’ capability to make better decisions at a more rapid pace. For those prepared to take this leap, the industry’s future is bright.
Krishnan Ramanujam is president, Consumer Business Group, Tata Consultancy Services, a global IT services and consulting firm.
Krishnan Ramanujam, President, Consumer Business Group, TCS
Krishnan Ramanujam is the President of Tata Consultancy Services’ Consumer Business Group. He is responsible for driving the vision and strategy for the unit, which works with the world’s leading companies across retail, consumer goods, distribution, travel, and logistics.
Krishnan focuses on making technology work for enterprises in pursuit of their biggest opportunities. He helps organizations gain a tech-powered competitive advantage—from offering a delightful customer experience to building agile supply chains to reimagining business models. Krishnan and his team combine their deep industry experience, technology expertise, and understanding of client organizations to guide complex technology-led transformations that improve efficiencies and drive growth.
Over the three decades of his TCS career, Krishnan has held many senior leadership roles that spanned across technology service lines, consulting practices, enterprise application solutions, and more. In his previous role, he led and grew TCS’ horizontal organization across services, including cloud, artificial intelligence, cybersecurity, IoT, and data analytics.
Krishnan has a BS and an MS in engineering and lives in Mumbai, India. He was the 2023 Chairperson of Nasscom, the premier trade association and chamber of commerce for India’s technology industry. He is passionate about promoting education in rural communities in India. Outside of work, he enjoys spending time with his family, learning Japanese, and reading non-fiction books.
