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A majority of grocers plan to test a ChatGPT solution in 2023

A new survey indicates that grocers are jumping on the AI trend

A new survey indicates that grocers are ready and willing to experiment with ChatGPT, the chatbot AI technology being rapidly adopted across many industries and companies (Instacart being one of the latest). 

The survey, from grocery data company Grocery Doppio, insights firm Incisiv, and digital commerce and fulfillment solutions Wynshop, polled grocery industry executives, shoppers, and additionally pulled in shopping data. 

In addition to asking about AI in grocery, the survey further touched on digital basket size increase and decline of third-party share of sales.

Key findings from February’s “State of Digital Grocery Performance Scorecard” include:

  • 67% of grocers say they have discussed ChatGPT at senior level meetings
  • 82% of grocers consider AI a necessity to remain competitive in the future
  • 59% of grocers will test an AI solution in 2023, while 13% will spend non-budgeted funds to do so

Grocers believe that AI will have the greatest impact on inventory forecasting, supply chain management, and pricing/promotions, while ChatGPT/large language models will affect customer service, product discovery, and store associate tools. 

Additional highlights include: 

Digital basket size grew, even as digital’s share of market slipped 

  • Compared to February 2022, digital basket size grew 47.2%, representing an average of 5 items more
  • Digital sales saw 2.1% growth from $9.6 to $9.8 billion between February 2022 and February 2023, but digital’s share of the total grocery market slipped from November 2022’s high of 17.1% to just 13.8% in February

Third-party providers continue to lose market share

  • Grocery sales through third parties fell to $1.8 billion in February 2023, down from $2.7 billion in February 2022 and $1.9 billion in January 2023
  • The balance of digital grocery sales were taken by grocers’ apps (5.9%), and grocers' websites (75.8%)

Share of grocery pickup sales continues to rise

  • Curbside/pickup sales grew by 8.3% from February 2022 to February 2023, rising from $4.8 billion to 5.2 billion, YOY

“ChatGPT has taken the world by storm, and grocers are no exception,” said Gaurav Pant, chief insights officer of both Incisiv and Grocery Doppio. “Grocers acknowledge they need advanced analytics and AI and are willing to experiment and invest in building those capabilities. Those that focus on high-impact use cases like inventory optimization or can figure out a better search and recommendation experience using LLMs have a chance to leapfrog their peers.”

Will you be turning to AI any time in the near future? Let us know in the comments below or email SN Executive Editor Chloe Riley at [email protected].

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