Artificial Intelligence: Empowering Firms Like Never Before—Global Grocery Sector (Part 3 of 5)

In this commentary we review how companies in the Grocery Sector are leveraging artificial intelligence (AI) to improve operations and customer experience, and the associated impact on their long term credit profiles.

Key highlights include:
-- Grocery firms are applying AI innovations to better address existing challenges, boost customer loyalty, and improve operations.
-- Grocers are well placed to collect retail and operational data. Increased harnessing of this growing data pool is essential to train and continuously improve AI models.
-- Failure to invest in AI techniques could impact the competitive positioning of the Grocers and may be detrimental to their credit risk profiles over the long term.

“Grocers are increasingly turning to AI powered solutions to better manage operations and improve their value proposition for the customers. We expect them to increase investment in AI in a bid to accrue long term benefits. However those Grocers who underinvest in AI are potentially jeopardizing their market positions and could reflect some credit weakening over the long term.” said Vineet Khattar, Vice President, Diversified Industries.

For more on artificial intelligence, please see DBRS Morningstar’s commentaries in the series:

Part 1 of 5: Artificial Intelligence: Empowering Firms Like Never Before

Part 2 of 5: Artificial Intelligence: Empowering Firms Like Never Before—Global Airlines Sector

Part 4 of 5: Artificial Intelligence: Empowering Firms Like Never Before—Global Auto Sector

Part 5 of 5: Artificial Intelligence: Empowering Firms Like Never Before—Global Telecom Sector