By 2027, 50% of Asia/Pacific Retailers Will Use GenAI for Product Content, Boosting Conversions and Cutting Costs by 30% - IDC Predicts.

According to IDC FutureScape: Worldwide Retail Predictions 2025 by 2027 50% of Asia/Pacific retailers will leverage GenAI-enabled content creation and delivery for dynamic product content, boosting conversion rates, and cutting content management costs by 30%. Generative AI is expected to drive efficiency, personalization and business growth.

Vijay Sarathi Gollapalli, Research Manager, Retail Technology Strategies Research Program, IDC Asia/Pacific.

As retailers integrate GenAI into their content strategies, key considerations include ensuring data accuracy, seamless system integration, and adherence to brand identity and local market nuances. With AI-driven content creation becoming a strategic advantage, Asia/Pacific retailers are poised to set new benchmarks in digital engagement and operational efficiency.

The Asia/Pacific retail market is transforming significantly, driven by economic recovery, shifting consumer behaviors, and rapid digitalization. IDC’s 2024 Global Retail Survey data highlights growing retailer optimism, fueling technology investments to enhance employee experience, streamline operations, and improve data utilization. These efforts aim to improve agility and resilience, enabling organizations to navigate market changes and disruptions.

AI and GenAI are transforming the retail industry, reshaping customer engagement, operations, and supply chains. IDC highlights other AI-driven predictions set to redefine the retail landscape, offering unprecedented opportunities for personalization, efficiency, and growth:

Flexible, cross-compatible models: By 2026, 90% of retail tools will embed AI algorithms. Over 30% of these algorithms will use standalone AI or modular, agnostic AI models that can be swapped out for suitable retail-specific models.

Intelligent rewards systems: By 2027, 50% of APeJ retailers will implement AI-driven loyalty applications, improving contextualized offers by 40%, and boosting customer engagement to drive up to a 25% increase in customer retention rates.

Streamlined labor costs: By 2026, 40% of APeJ retailers will have reduced workforce costs by 2% with embedded GenAI in fundamental business processes and tasks across business operations at corporate and in stores

As Asia/Pacific retail continues to evolve, the integration of AI is set to reshape the industry significantly. GenAI is unlocking new opportunities by automating content generation, reducing operational costs, and delivering more relevant product information across digital and physical channels. This report also reveals that retail tools across the region will increasingly embed AI algorithms, with one-third of these utilizing standalone or modular, agnostic AI models. This flexibility allows retailers to swap out generic models for specific retail applications, enhancing interoperability across diverse systems without necessitating deep integration.

"As we navigate the digital transformation of retail in Asia/Pacific, it is clear that AI will be at the forefront of this evolution," said Vijay Sarathi Gollapalli, research manager, Retail Technology Strategies Research Program, IDC Asia/Pacific. "The ability to adapt AI tools for specific retail needs while optimizing costs will be essential for retailers aiming to thrive in this competitive landscape."

To learn more, visit: www.idc.com