Yohann Gunatilleke

The future of shopping: Exploring GenAI's influence on retail

gen ai x retail

<div>
  <p>
    With GenAI taking the world by storm, retailers are now scrambling to use this transformative technology in the most useful way. 
  </p>
  <p>
    In this Insight, we provide a closer look at those use cases, how they are different from already known AI/ML applications in retail, and what the industry can expect in the near future. 
  </p>
</div>


<div>
  <ul>
    <li>
      <p>
        Individualization and personalization are becoming increasingly significant demands for consumers in 2023. Consequently, in order to keep up and stand out, retailers are being pushed to adopt emerging tech to improve customer experience and internal processes across various business functions. 
      </p>
    </li>
    <li>
      <p>
        With GenAI expected to contribute between USD 400 billion and 660 billion in additional value to the retail and consumer packaged goods (CPG) industry, retailers in particular are now scrambling to use this transformative technology in the most useful way.
      </p>
    </li>
    <li>
      <p>
        Furthermore, GenAI can act as a natural complement to many of the retail processes that use traditional AI, such as customer service, inventory management, data analysis, and predictive forecasting.
      </p>
    </li>
    <li>
      <p>
        From personalized shopping experiences via virtual assistants and virtual try-ons, to better employee training and optimized supply chains, GenAI is changing the way retailers do business and engage with customers.
      </p>
    </li>
  </ul>
  <p>
  </p>
</div>


<div>
  <ul>
    <li>
      <p>
        Adoption of GenAI in healthcare continues to grow, Big Tech competition heats up as Amazon makes major moves. 
      </p>
    </li>
    <li>
      <p>
        Alphabet continued to lead healthcare activity. 
      </p>
    </li>
    <li>
      <p>
        No major acquisitions during the quarter, but reports suggest a multi-billion dollar move by Walmart is on the cards. 
      </p>
    </li>
  </ul>
  <p>
  </p>
</div>


<div>
  <ul>
    <li>
      <p>
        <b>Adoption of GenAI in healthcare continues to grow, Big Tech competition heats up as Amazon makes major moves.</b>
         While Alphabet and Microsoft continue to make steady progress in the healthcare GenAI space through their product offerings, Amazon&rsquo;s consolidation through the launch of AWS HealthScribe (a HIPAA-compliant service that enables healthcare software vendors to build clinical applications that automatically generate clinical notes by analyzing patient-clinician conversations) and its strategic investment in 
        <a href="https://sp-edge.com/companies/1398144">
          Anthropic
        </a>
         demonstrate intensifying competition in this space.
      </p>
    </li>
  </ul>
  <p>
  </p>
  <ul>
    <li>
      <p>
        <a href="https://sp-edge.com/companies/314571">
          <b>Alphabet</b>
        </a>
        <b> continued to lead healthcare activity. </b>
        The tech giant accounted for ~32% of all Big Tech activity and nearly a quarter of all healthcare activity. Primary care remained the focus, with nearly 80% of its activities concentrated in the area. However, within primary care, Alphabet broadened its focus to improve preventive healthcare, hospital management and interoperability, AI drug discovery, and clinical decision support.
      </p>
    </li>
  </ul>
  <p>
  </p>
  <ul>
    <li>
      <p>
        <b>Overall activity of retailers slowed in Q3 2023, </b>
        accounting for 15% (down from 32% during Q2 2023). Walgreens continued its commitment to value-based care. Following a landmark investment in 
        <a href="https://sp-edge.com/companies/324761">
          VillageMD
        </a>
        , Walgreens announced its latest strategic partnership with 
        <a href="https://sp-edge.com/companies/1622932">
          Pearl Health
        </a>
         to bring value-based primary care to communities across the country.
      </p>
    </li>
  </ul>
  <p>
  </p>
</div>


Tech & retail giants in healthcare (Q3 2023): Big Tech pushing GenAI aggressively

<div>
  <ul>
    <li>
      <p>
        The retail industry plays a pivotal role in the US economy and has been evolving with new technologies.
      </p>
    </li>
  </ul>
  <p>
  </p>
  <ul>
    <li>
      <p>
        To maintain a competitive edge in this field, retailers actively pursue strategic partnerships, investments, and M&amp;As primarily in the transportation and logistics, retail technology, and health and wellness sectors.
      </p>
    </li>
  </ul>
  <p>
  </p>
</div>


The retail industry in the US is an important part of the economy and is constantly changing due to new technologies. To stay ahead, retailers are seeking strategic partnerships, investments, and mergers and acquisitions in areas like transportation and logistics, retail technology, and health and wellness. These initiatives help retailers stay competitive and adapt to the evolving needs of consumers.

Beyond the shelves: A deep dive into retailers' innovations

<div>
  <ul>
    <li>
      <p>
        The US digital health sector closed with 
        <b>USD 3.6 billion</b>
         across 
        <b>289 rounds</b>
         in Q1, up 5% QoQ
      </p>
    </li>
    <li>
      <p>
        <b>Generative AI</b>
         emerged as a common theme among 
        <b>big tech incumbents</b>
        , highlighted by AWS partnering with 3M and Philips to offer the Amazon Bedrock foundation model 
      </p>
    </li>
    <li>
      <p>
        The quarter also witnessed the entry of the 
        <b>first AI-discovered drug</b>
        &mdash;developed by Insilico Medicine&mdash;into 
        <b>Phase II clinical trials</b>
      </p>
    </li>
  </ul>
  <p>
  </p>
</div>


Digital Health (Q2 2023): Funding flow steady; first AI-drug enters Phase II clinical trials

<div>
  <ul>
    <li>
      <p>
        Alphabet continues momentum from last quarter; neck-and-neck with Oracle for most healthcare activity in Q2 2023
      </p>
    </li>
    <li>
      <p>
        No M&amp;A activity in Q2, a significant shift from the aggressive moves of the recent past
      </p>
    </li>
    <li>
      <p>
        Generative AI in healthcare emerges as a common theme in Big Tech partnerships
      </p>
    </li>
  </ul>
  <p>
  </p>
</div>


Tech & retail giants in healthcare (Q2 2023): CVS hits pause on M&A; Big Techs enabling generative AI

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  <p>
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</div>


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<div>
  <p>
    This report highlights the transition from traditional surveillance systems to smart surveillance powered by artificial intelligence (AI)
  </p>
</div>


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<div>
  <ul>
    <li>
      <p>
        Alphabet has emerged as the undisputed leader, accounting for 33% of total healthcare activity
      </p>
    </li>
    <li>
      <p>
        The primary care industry was abuzz in Q1 2023, with 65% of all healthcare industry activity
      </p>
    </li>
    <li>
      <p>
        CVS is betting big on primary care with its second multibillion-dollar purchase in just seven months
      </p>
    </li>
  </ul>
  <p>
  </p>
</div>


Q1 2023 tech and retail giants in healthcare: Alphabet dominates; CVS continues purchasing frenzy

<div>
  <ul>
    <li>
      <p>
        Microsoft, Amazon, and Google competed for control in the healthcare cloud market
      </p>
    </li>
    <li>
      <p>
        Apple&rsquo;s Watch and Google's Fitbit stepped up their wearable tech for medical use and Alphabet focused on its AI expertise to drive precision medicine 
      </p>
    </li>
    <li>
      <p>
        CVS, Walmart, Walgreens, and Amazon doubled down on their primary care and omnichannel care delivery
      </p>
    </li>
  </ul>
  <p>
  </p>
</div>


Tech and retail giants: Everyone wants a piece of the healthcare pie

From fast food to fine dining, everything but the kitchen sink is suddenly just a tap away.

Online Food Delivery

<div>
  <ul>
    <li>
      <p>
        Online grocery delivery booms during Pandemic
      </p>
    </li>
    <li>
      <p>
        Crowded marketplace paves room for consolidation
      </p>
    </li>
    <li>
      <p>
        Top-line growth may not trickle down to profits
      </p>
    </li>
  </ul>
  <p>
  </p>
</div>


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