{"id":692506,"date":"2025-07-11T12:30:37","date_gmt":"2025-07-11T12:30:37","guid":{"rendered":"https:\/\/www.capgemini.com\/gb-en\/?p=692506"},"modified":"2026-01-22T07:44:10","modified_gmt":"2026-01-22T07:44:10","slug":"master-data-ai-next-gen-retail","status":"publish","type":"post","link":"https:\/\/www.capgemini.com\/gb-en\/insights\/expert-perspectives\/master-data-ai-next-gen-retail\/","title":{"rendered":"How to master data &amp; AI to power the next generation of retail"},"content":{"rendered":"\n<header class=\"wp-block-cg-blocks-hero-blogs header-hero-blogs\"><div class=\"container\"><div class=\"hero-blogs\"><div class=\"hero-blogs-content-wrapper\"><div class=\"row\"><div class=\"col-12\"><div class=\"header-title\"><h1>How to master data &amp; AI to power the next generation of retail<\/h1><\/div><\/div><\/div><\/div><div class=\"hero-blogs-bottom\"><div class=\"header-author\"><div class=\"author-img\"><img decoding=\"async\" src=\"https:\/\/www.capgemini.com\/gb-en\/wp-content\/uploads\/sites\/5\/2023\/03\/Conor-McGovern-image-1.jpg?w=200&amp;quality=10\" alt=\"\" loading=\"lazy\"\/><\/div><div class=\"author-name-date\"><h5 class=\"author-name\">Conor McGovern<\/h5><h5 class=\"blog-date\">Jul 11, 2025<\/h5><\/div><\/div><div class=\"brand-image\"> <\/div><\/div><\/div><\/div><\/header>\n\n\n\n<section class=\"wp-block-cg-blocks-group undefined section section--article-content\"><div class=\"article-main-content\"><div class=\"container\"><div class=\"row\"><div class=\"col-12 col-md-1\"><nav class=\"article-social\"><ul class=\"social-nav\"><li class=\"ip-order-fb\"><a href=\"https:\/\/www.facebook.com\/sharer\/sharer.php?u=https:\/\/www.capgemini.com\/gb-en\/?p=692506\" target=\"_blank\" rel=\"noopener noreferrer\" title=\"opens in a new window\"><i aria-hidden=\"true\" class=\"icon-fb\"><\/i><span class=\"sr-only\">Facebook<\/span><\/a><\/li><li class=\"ip-order-li\"><a href=\"https:\/\/www.linkedin.com\/sharing\/share-offsite\/?url=https:\/\/www.capgemini.com\/gb-en\/?p=692506\" target=\"_blank\" rel=\"noopener noreferrer\" title=\"opens in a new window\"><i aria-hidden=\"true\" class=\"icon-li\"><\/i><span class=\"sr-only\">Linkedin<\/span><\/a><\/li><\/ul><\/nav><\/div><div class=\"col-12 col-md-11 col-lg-10\"><div class=\"article-text article-quote-text\">\n<p>In today\u2019s fast-evolving retail landscape, data and AI are no longer optional \u2013 they&#8217;re existential. In our recent POV, &#8216;Five tried and tested operational principles for retail resilience&#8217; we briefly highlighted how AI can enable dynamic decision-making at scale and act as a co-pilot to commercial, supply chain, and store operations teams. AI is not the silver bullet, but it goes beyond traditional analytics by explaining, recommending, and acting in a way that maximises product profitability.<\/p>\n\n\n\n<p>The most forward-thinking retailers are already years ahead, leveraging these technologies to drive efficiency, profitability, and customer satisfaction. They\u2019ve made conscious decisions to master all things data &amp; AI to remain competitive.<\/p>\n\n\n\n<p>But for those whose data &amp; AI strategies aren&#8217;t quite as mature, how can they catch up?<\/p>\n\n\n\n<p>Let&#8217;s unpack the top use cases for data &amp; AI in retail and learn how to put in place the critical foundations to get there.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-top-use-cases-for-data-amp-ai-in-retail\">Top use cases for data &amp; AI in retail<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>AI-powered recommendation engines <\/strong>\u2013 Generative AI (Gen AI) can power commercial recommendation engines that automate millions of micro-decisions. These systems optimise product suggestions, pricing, and promotions in real time \u2013 boosting conversion rates and customer satisfaction.<\/li>\n\n\n\n<li><strong>Demand forecasting &amp; inventory optimisation <\/strong>\u2013 AI models can predict demand with high accuracy, helping retailers reduce overstock and stockouts. This leads to better inventory turnover, lower costs, and improved customer experience.<\/li>\n\n\n\n<li><strong>Dynamic pricing <\/strong>\u2013 AI can be used to adjust prices dynamically based on demand, competition, and customer behaviour. This ensures competitiveness while protecting margins.<\/li>\n\n\n\n<li><strong>Customer segmentation &amp; personalisation \u2013 <\/strong>Advanced analytics enable hyper-personalized marketing by segmenting customers based on behaviour, preferences, and lifetime value.<\/li>\n\n\n\n<li><strong>Supply chain optimisation \u2013 <\/strong>AI helps streamline logistics, predict disruptions, and optimise delivery routes \u2013 making supply chains more resilient and cost-effective.<\/li>\n<\/ul>\n\n\n\n<p>To get to these levels of sophisticated granularity and speed of response, you need highly automated data, analytics, and execution capabilities.<\/p>\n\n\n\n<p><strong>This means:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Solid, near real-time data foundations<\/li>\n\n\n\n<li>As automated as possible data &amp; AI sitting on top of those foundations<\/li>\n\n\n\n<li>Considerations for where you might use agentic AI for decision-making and execution \u2013 for example, solving complex sales and customer service queries or deciding real-time pricing decisions in an online environment \u2013 with the right guardrails and human oversight<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-that-s-the-end-goal-so-how-do-we-get-there\">That\u2019s the end goal. So, how do we get there?<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Improving data literacy and culture across the organisation<\/strong><\/li>\n<\/ul>\n\n\n\n<p>First, success in data and AI starts with a top-down belief in its existential importance. Data transformation isn\u2019t just technical \u2013 it\u2019s cultural.<\/p>\n\n\n\n<p>Many organisations choose to move in the data foundations direction first before trying to advance their culture and literacy. But one of the characteristics right alongside data foundations is concerted efforts to raise the level of data literacy and confidence and belief in the data.<\/p>\n\n\n\n<p>In our <a href=\"https:\/\/www.capgemini.com\/gb-en\/insights\/research-library\/data-powered-enterprises-2024\/\">\u2018Data-powered enterprises&#8217;<\/a> research, we found 80% of surveyed data executives in our \u2018data masters\u2019 category had defined a strategy to become a data-powered organisation, compared with 61% of others. Also, 81% of data executives in the \u2018data masters\u2019 category stated that all business areas in their organisation had a defined data\/analytics strategy and roadmap, compared with 64% of others. For example, for a large grocery retailer currently undergoing a data transformation programme, a significant pillar is a dedicated central organisation with 100+ people dedicated to driving data literacy and culture, and data &amp; AI enablement.<\/p>\n\n\n\n<p>Of course, getting to this point requires building trust in data \u2013 closing the gulf that often exists between IT and business execs with a combination of data foundations and data literacy and culture. There\u2019s no point spending time and money cleaning your data, building models and tools, then putting them into the hands of end-users and decision-makers who choose not to use them.<\/p>\n\n\n\n<p>Overall, organisations that focus more on behaviours (culture, change management, leadership) and foundations together reap the most benefits.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Strong end-to-end data &amp; AI strategy framework<\/strong><\/li>\n<\/ul>\n\n\n\n<p>Without strong data foundations, AI cannot deliver value at scale, reliably or repeatedly. This strategy framework should include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Clean, governed, and secure data<\/li>\n\n\n\n<li>Fit-for-purpose data architecture<\/li>\n\n\n\n<li>Scalable data platforms<\/li>\n\n\n\n<li>Real-time data pipelines<\/li>\n<\/ul>\n\n\n\n<p>Protecting your data as an asset is crucial. This covers all elements of your data foundations; protecting and securing data with your standards and governance, sufficiently good data quality and master data management processes. It&#8217;s implementing the right operating model, establishing structured approaches to data management and making sure that you&#8217;ve got modern fit for purpose, data architecture, and technology.<\/p>\n\n\n\n<p>This is a key pillar in any data transformation. We see many of our clients getting stuck in the proof-of-concept (PoC) trap \u2013 spending vast amounts of money on ideas that they simply can\u2019t scale. In fact, 75% of data executives surveyed by the <a href=\"https:\/\/www.capgemini.com\/gb-en\/insights\/research-library\/data-powered-enterprises-2024\/\">Capgemini Research Institute<\/a> cited large-scale deployment of generative AI PoCs as a major challenge.<\/p>\n\n\n\n<p>Instead, we always recommend a proof-of-value (PoV) to demonstrate&nbsp; that a solution not only works but also delivers measurable business benefits, such as increased efficiency, cost savings, or improved customer outcomes. Broader than a PoC, this will often include real data, user testing, and performance metrics.<\/p>\n\n\n\n<p>Having good, consistent standard quality data foundations means you&#8217;re much more likely to be able to repeatedly and reliably scale more advanced analytics and AI applications that you build on top.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Building AI models that operate with independence<\/strong><\/li>\n<\/ul>\n\n\n\n<p>As customer expectations shift toward seamless, real-time digital experiences, retailers are under increasing pressure to deliver instant, personalised interactions \u2013 especially in areas like pricing and promotions. This evolution demands not only robust real-time data infrastructure but also advanced analytics and AI systems capable of making autonomous decisions at scale. After all, when rolling out dynamic pricing for millions of customers, keeping a human in the loop becomes impractical. Impossible, even.<\/p>\n\n\n\n<p>Therefore, you need to design AI models that can operate with a high degree of independence. This requires a carefully architected operating model where automation is governed by clearly defined rules, ethical boundaries, and oversight mechanisms. Strong governance frameworks are essential to ensure that these autonomous systems make decisions that are not only fast and scalable but also aligned with business values and regulatory standards.<\/p>\n\n\n\n<p><strong>Partnering for the AI-powered future of retail<\/strong><\/p>\n\n\n\n<p>Mastering data and AI is no longer a competitive advantage, it\u2019s a necessity. But getting there requires more than just technology. It demands a cultural shift towards data-centricity, robust data foundations, and the ability to scale transformation across the enterprise. It pays to bring partners<a> <\/a>on board to help you navigate these complexities.<\/p>\n\n\n\n<p>As your business and technology transformation partner, Capgemini\u2019s team of data &amp; AI and retail experts can bring:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Deep retail industry expertise<\/strong> \u2013 With decades of experience working with global retailers, we understand the nuances of your business and the evolving expectations of your customers.<\/li>\n\n\n\n<li><strong>Leading data &amp; AI capabilities<\/strong> \u2013 From real-time data platforms to advanced AI models and Gen AI applications, we help you unlock value at every stage of your data journey.<\/li>\n\n\n\n<li><strong>Scaled transformation delivery<\/strong> \u2013 We don\u2019t just design strategies \u2013 we implement them at scale, embedding change across people, processes, and platforms.<\/li>\n<\/ul>\n\n\n\n<p>Whether you&#8217;re just starting your data journey or looking to scale AI across your enterprise, Capgemini can help you build the foundations, culture, and capabilities to thrive in the AI-powered future of retail.<\/p>\n\n\n\n<p>Get in touch to start that transformation today.<\/p>\n<\/div><\/div><\/div><\/div><\/div><\/section>\n\n\n\n<section class=\"wp-block-cg-blocks-wrapper-people-slider section section--expert-slider wrapper-people-slider undefined\"><div class=\"container\"><div class=\"content-title\"><h2 data-maxlength=\"34\" class=\"people-heading-title\">Meet our author<\/h2><\/div><\/div><div class=\"slider slider-boxed\"><div class=\"container\"><div class=\"slider-window\"><div class=\"slider-list\">\t\t<div class=\"slide\">\n\t\t\t<div class=\"box\">\n\t\t\t\t<div class=\"row\">\n\t\t\t\t\t<div class=\"col-md-6 col-lg-4 box-img-wrapper\">\n\t\t\t\t\t\t<img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/www.capgemini.com\/gb-en\/wp-content\/uploads\/sites\/5\/2023\/03\/Conor-McGovern-image-1.jpg\" alt=\"Conor McGovern\"\/>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<div class=\"col-md-6 col-lg-8 box-inner\">\n\t\t\t\t\t\t<div class=\"row title-social-media-header\">\n\t\t\t\t\t\t\t<div class=\"col-md-12 col-lg-6 mbl-social-icon\">\n\t\t\t\t\t\t\t\t<ul class=\"social-nav\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<li><a aria-label=\"Linkedin\" target=\"_blank\" title=\"Opens in a new window\" href=\"http:\/\/www.linkedin.com\/in\/conormcgovern\/\"><i aria-hidden=\"true\" class=\"icon-li\"><\/i><\/a><\/li>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/ul>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<div class=\"col-md-12 col-lg-6 box-container\">\n\t\t\t\t\t\t\t\t<div class=\"box-title\">\n\t\t\t\t\t\t\t\t\t<h3 class=\"people-profile-title\">Conor McGovern<\/h3>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span>VP Analytics and Artificial Intelligence (A&amp;AI) | Capgemini Invent<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<div class=\"col-md-12 col-lg-6 social-box-container dkt-social-icon\">\n\t\t\t\t\t\t\t\t<ul class=\"social-nav\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<li><a aria-label=\"Linkedin\" target=\"_blank\" title=\"Opens in a new window\" href=\"http:\/\/www.linkedin.com\/in\/conormcgovern\/\"><i aria-hidden=\"true\" class=\"icon-li\"><\/i><\/a><\/li>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/ul>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"people-info\">Conor McGovern leads the Analytics and Artificial Intelligence (A&#038;AI) practice in Capgemini Invent UK and Invent\u2019s global Enterprise Data &#038; Analytics practice. Conor and his team use data, analytics and AI to tackle the toughest business challenges for clients. They help drive strategic, real-time decision-making, eliminate repetitive tasks and enable new levels of efficiency.<\/div>\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div><\/div><\/div><div class=\"slider-nav\"><button class=\"slider-prev inactive\" aria-label=\"Slider-previous\" tabindex=\"-1\"><\/button><ul class=\"slider-paginator\"><\/ul><button class=\"slider-next\" aria-label=\"Slider-next\"><\/button><\/div><\/div><\/section>\n\n\n\n\t\t<section\n\t\t\tclass=\"section section--lifeatcap-learning section--event-slider-careerInvent \">\n\n\t\t\t<div class=\"container\">\n\t\t\t\t<div class='career-invent-header'>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\n\t\t\t<div class=\"slider slider-fader af38be40-4ecc-49e8-a3b9-291b24816503\">\n\t\t\t\t\t\t\t\t<div\n\t\t\t\t\tclass=\"slider-list \">\n\t\t\t\t\t\t\t\t\t\t\t<div\n\t\t\t\t\t\t\tclass=\"slide active \">\n\t\t\t\t\t\t\t<div\n\t\t\t\t\t\t\t\tclass=\"slide-bg-wrapper wp-block-cg-blocks-career-invent \">\n\t\t\t\t\t\t\t\t<div class=\"bgImagesection\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"bgColor\"><\/div>\n\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t<div class=\"container slide-info-wrapper\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"row\">\n\t\t\t\t\t\t\t\t\t\t\t<div\n\t\t\t\t\t\t\t\t\t\t\t\tclass=\"col-md-6 col-sm-12 box-inner \">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"bgColor\"><\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<div\n\t\t\t\t\t\t\t\t\t\t\t\t\t\tclass=\"content-title \">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<h3 class=\"explore-header\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tdata-maxlength=\"68\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\ttitle=\"Enhance profitability with end-to-end thinking\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tEnhance profitability with end-to-end thinking\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/h3>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<div\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tclass=\"box-title \">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<h4 data-maxlength=\"144\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\ttitle=\"To remain profitable in today\u2019s challenging market, retailers must adopt a mindset that protects customer value, is sustainable for employees, a\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tstyle=\"white-space: pre-wrap;\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tTo remain profitable in today\u2019s challenging market, retailers must adopt a mindset that protects customer value, is sustainable for employees, a\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/h4>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<div 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class=\"box-img\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\tsrc=\"https:\/\/www.capgemini.com\/gb-en\/wp-content\/uploads\/sites\/5\/2025\/05\/web_banner_PP.jpg\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\tstyle=\"object-position: 14% 52%; object-fit: cover;\" alt=\"\" \/>\n\n\t\t\t\t\t\t\t\t\t\t\t\t<\/picture>\n\t\t\t\t\t\t\t\t\t\t\t\t<!-- <img decoding=\"async\" class=\"box-img\" src=\"\"\n\t\t\t\t\t\t\t\t\t\t\tstyle=\"\" alt=\"\"\n\t\t\t\t\t\t\t\t\t\t\/> -->\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<div class=\"\">\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<div class=\"slide-reveal\"><\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\n\t\t\t\t<\/div>\n\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t<\/section>\n\n\t\t","protected":false},"excerpt":{"rendered":"<p>The most forward-thinking retailers are already years ahead, leveraging these technologies to drive efficiency, profitability, and customer satisfaction. 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