Gartner Research

Use-Case Prism:
Generative AI
for Retail
Robert Hetu

19 July 2023
Use-Case Prism: Generative AI for Retail
Published 19 July 2023 - ID G00797408 - 24 min read
By Analyst(s): Robert Hetu
Initiatives: Unified Retail Commerce for Digital Business Execution

This Prism plots 20 of the most prominent use cases for

generative AI in retail against value and feasibility. Retail CIOs can
use this to start a strategic conversation that guides investment
decisions in this technology.

Overview
Generative AI is an enabler of specific use cases for retail. This Use-Case Prism plots
these use cases against value and feasibility axes, inviting strategic conversations and
driving investment decisions (see Figure 1).

Generative AI (GenAI) will progress rapidly in both scientific discovery and technology
commercialization. Likely successful retail use cases include enhanced search and
upselling, social media customer sentiment, supply chain optimization, and
conversational chat interfaces. GenAI will also facilitate the development of accurate and
actionable customer behavior models and the ability to improve the efficiency and
accuracy of unified retail commerce operations.

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Figure 1: GenAI Use-Case Prism for Retail

How to Use
Review the GenAI-enabled use cases plotted on the Prism, comparing them with the
maturity and requirements of your own retail organization. To assist with this task, we
have a presentation summary of this research and a Toolkit.

Presentation

Download a summary presentation of this research here:

Toolkit
A companion Toolkit allows you to tailor the Use-Case Prism for your organization’s
needs. Navigate to the Toolkit and download the Excel file to customize the use cases,
value and feasibility dimensions, relative weightings, and use-case scores.

Scoring Breakdown
Figure 2 shows how each use case was scored against each value and feasibility
dimension. See Table 1, below the scoring in Figure 2, for explanations of each
dimension.

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Figure 2: GenAI Use-Case Scorecard for Retail

Gartner evaluated use cases based on analysts’ aggregate analysis of the industry
segment and their regular interactions with technology leaders from that industry. We
evaluated “value” realization within three to five years and “feasibility” of implementation
in the next 18 months.

While these ratings can accelerate overall appraisal of the market, the positioning for an
individual organization will vary, in some cases, dramatically, based on region, technical
maturity or position in the market.

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Table 1: Use-Case Dimension Explanations
(Enlarged table in Appendix)

Scoring Breakdown by Category

Figure 3 shows the Prism overlaid with the four categories we’ve split the use cases into.
The sections that follow summarize the rationale for each use-case score.

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Figure 3: Use-Case Prism Categories

Use-Case Prism Categories

Each use case is placed into one of four categories based on its position on the Prism.
Click on the category name to jump to a section summarizing the rationale for each
use-case score in that category:

■ Likely Wins: Use cases at the top of the Prism combine high feasibility and high
value, making them wins in most circumstances.

■ Calculated Risks: Use cases on the left side of the Prism offer high value but low
feasibility, meaning they represent riskier options.

■ Marginal Gains: Use cases on the right side of the Prism are highly feasible but
offer low value, making them low-risk but for marginal gains.

■ Selective Exceptions: Use cases at the bottom of the Prism offer low value and
low feasibility, making them lower-priority except in select circumstances.

Likely Wins

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Use cases at the top of the Prism combine high feasibility and high value, making them
wins in most circumstances.

Table 2: Scoring Breakdown: High-Value, High-Feasibility Use Cases

(Enlarged table in Appendix)

Calculated Risks

Use cases on the left side of the Prism offer high value but low feasibility, meaning
they represent riskier options.

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Table 3: Scoring Breakdown: High-Value, Low-Feasibility Use Cases
(Enlarged table in Appendix)

Marginal Gains

Use cases on the right side of the Prism are highly feasible but offer low value, making
them low-risk but for marginal gains.

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Table 4: Scoring Breakdown: Low-Value, High-Feasibility Use Cases
(Enlarged table in Appendix)

Selective Exceptions

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Use cases at the bottom of the Prism offer low value and low feasibility, making them
lower-priority except in select circumstances.

Table 5: Scoring Breakdown: Low-Value, Low-Feasibility Use Cases

(Enlarged table in Appendix)

Evidence
These use cases have been selected, positioned and averaged out based on an
assessment by Gartner analysts and customer feedback. Their applicability may vary
across organizations and industries. For detailed customization, use Gartner’s Prism
Toolkit.

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Reference
1
Retail Revolution: NewData Reveals NextGeneration of Shoppers Ready for AI, AR and
Robots! Klarna.

Note 1: Definitions of the Scoring Scale

Table 6: Definitions of the Value Ratings

Rating Definition

N/A Not applicable. The use case is not intended

to create value in any way.

0 Negligible. It offers promise for value in the

market, but it is doubtful that enterprises
gain any real value.

1 Low. It offers a slight process improvement.

It is difficult to translate into increased
revenue or cost savings.

2 Moderate. It offers incremental, but

significant, improvements to existing
processes. These improvements will result in
increased revenue or cost savings for an
enterprise.

3 High. It enables new ways of performing

horizontal or vertical applications, resulting
in significantly increased revenue or cost
savings for an enterprise.

4 Transformational. It enables new ways of

doing business within and across industries.
This will result in major shifts in industry
dynamics.

Source: Gartner (July 2023)

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Table 7: Definitions of the Feasibility Ratings

Rating Definition

0 Impossible. There is a very low chance of

enterprises feasibly implementing the use
case.

1 Challenging. It is possible to implement the

use case, but enterprises must overcome
barriers with significant efforts.

2 Complicated. Enterprises can implement the

use case, but will face moderate obstacles.

3 Doable. Enterprises can implement the use

case with minor obstacles.

4 Easy. The use case is within the capabilities

of most enterprises to adapt.

Source: Gartner (July 2023)

Recommended by the Author

Some documents may not be available as part of your current Gartner subscription.
Toolkit: Discover and Prioritize Your Best AI Use Cases With a Gartner Prism
Retailers Must Drive Customer-Centric Merchandising With an AI Core
Quick Answer: What Should Retailers Know About ChatGPT?
Infographic: Artificial Intelligence Use-Case Prism for Long Life Cycle Retail
Infographic: Artificial Intelligence Use-Case Prism for Short Life Cycle Retail
Emerging Technologies and Trends Impact Radar: Artificial Intelligence in Retail
Uncovering Artificial Intelligence Business Opportunities in Over 20 Industries and
Business Domains
Understanding Use Case Prisms for Prioritizing Artificial Intelligence Investments

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© 2023 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of
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research may not be used as input into or for the training or development of generative artificial
intelligence, machine learning, algorithms, software, or related technologies.

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Table 1: Use-Case Dimension Explanations

Dimension Explanation

Value

Increased revenue The ability of the use case to effectively deliver additional funding to the
organization through sales of products and services, government allocations,
or grant funding that will result in top-line growth.

Increased efficiency The ability of the use case to meet or exceed performance goals with equal or
fewer resources, resulting in reduced costs.

Managed risk The ability of the use case to remove uncertainty from the future
performance of the organization by reducing potential reputational, security
or operational risks or creating agility to respond to future market
disruptions.

Nonfinancial value The ability of the use case to assist the organization in meeting its
nonfinancial or mission-related goals. These goals can include the
nonfinancial value of innovation; diversity, equity and inclusion; sustainability;
or community development.

Feasibility

Technical feasibility The organization’s ability to meet the technical requirements of a use case.
Considerations include the core capabilities of the GenAI technology itself,
the availability of vendor support, the current state of the organization’s
technology infrastructure, and the technical talent required by the use case.

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Dimension Explanation

Internal readiness The organization’s ability and openness to use and incorporate the use case.
This includes the willingness of internal stakeholders to understand, trust and
effectively execute the use case.

External readiness The extent to which the environment outside of the organization is conducive
to successful execution of the use case. This includes consideration of the
legal and regulatory environment; public opinion of the use case; and the
digital access, literacy and engagement required by the use case.

Source: Gartner (July 2023)

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Table 2: Scoring Breakdown: High-Value, High-Feasibility Use Cases

Use Case Value Feasibility

1. Enhanced Search and Upselling Increased revenue (4): It helps customers and Technical feasibility (3): AI in retail has been
Prompts and interactions during search improve associates find the right products, based on the progressing over the past five years. Now, there is
customers’ abilities to find what they are looking customer’s natural language and contextual greater ability to identify product attributes, as well
for during a shopping process. Upselling is a sales inferences. as to leverage chat interfaces to improve use of
technique where AI can be leveraged to encourage Increased efficiency (4): It eliminates errors from natural language.
more-expensive purchases or add-ons. Cross- current categorizations and filtering. Internal readiness (3): Digital commerce has
selling is selling a different product or service to an Managed risk (4): Good execution should improve improved the focus on master data management
existing customer. retention. It is possible that the retailer may have for products and customers.
to admit to the customer that it does not have External readiness (3): Customers want better
exactly what the customer is looking for. search options.
Nonfinancial value (4): It helps consumers achieve
their highest levels of personal satisfaction
through validation and availability.

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Use Case Value Feasibility

2. Social Media Customer Sentiment Increased revenue (3): Customer sentiment Technical feasibility (3): Predictive elements from
Content discovery analysis is leveraged to quickly changes quickly, and if the retailer is more in line GenAI will make it easier to prevent possible errors.
monitor customer and influencer social media with customer sentiments, revenue will increase. Internal readiness (4): Retailers are struggling with
content, spot trends and sentiments, and predict Increased efficiency (4): This is a difficult process current tools to keep abreast of the speed of
outcomes and inform future decisions. to continually update today. change in social sentiment.
Managed risk (4): This is a way to catch early risks External readiness (3): Consumers, governments
from shifting social media impacts seen in many and organizations are holding retailers more
retail and consumer goods companies. accountable for what they are saying and doing.
Nonfinancial value (4): It helps with
environmental, social and governance (ESG).

3. Supply Chain Optimization Increased revenue (3): Execution of the basics, Technical feasibility (3): Supply chains have
GenAI content discovery in a globalized, data-driven including in-stock availability, is a primary core available information and signals that can be
business world enables efficient and sustainable competency and the foundation of sales. leveraged to improve performance.
flow of goods, components and materials. This Increased efficiency (4): New models are required Internal readiness (4): Retailers are hungry for
improves predictions for sourcing and to ensure efficiency is achieved in the complex optimization of supply chains.
procurement, logistics, transportation, and marketplace. External readiness (3): Global uncertainty and
collaboration with suppliers. Managed risk (3): Derisking the global supply chain legislative reactions across North America,
is a significant risk avoidance tactic. European Union and Asia/Pacific are lingering.
Nonfinancial value (3): It enables better customer
perception through inventory availability.

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Use Case Value Feasibility

5. Conversational Chat Interface Increased revenue (4): There are some early Technical feasibility (3): GenAI will help these
Conversational AI and virtual assistant interfaces examples (Zappos), and customers are hungry for solutions evolve to greater accuracy and flexibility
interact with customers and associates, which may more accuracy from chat. to respond to more-complex chats.
include facilitating a transaction. A key aspect is Increased efficiency (4): Well-developed and well- Internal readiness (2): There should be no major
the enablement of human customers to converse controlled solutions that are trained on the impact, but human associates must be prepared
in their platform of choice — whether that is the retailer’s specific operations and products will for customers who ask about previous chat
messaging platform, SMS, advanced virtual create efficiency. interactions.
assistants (VPAs), social media or voice. Managed risk (1): This exposes the retailer to risk External readiness (3): Customers are ready for
and must be closely monitored in the early stages. better chat options.
Nonfinancial value (4): It builds stronger perceived
relationships with the customers.

6. Associate Hiring, Onboarding Increased revenue (4): Well-trained associates in- Technical feasibility (3): There are active use
It leverages content creation and discovery, large store are a major contributing factor to sales cases, including Walmart. But presently, this may
language models (LLMs), and natural language success. be out of reach for many retailers.
technologies to enhance associate recruiting and Increased efficiency (3): Onboarding in the retail Internal readiness (3): Associates will quickly
training through interactive experiences for store is challenging, haphazard and time- adopt this approach.
individual associates. consuming. Turnover is high, and lack of training External readiness (3): New associates expect
exacerbates the turnover issues. more from employers.
Managed risk (3): Knowledgeable associates
operate at a significantly higher standard and will
do a greater job of protecting assets.
Nonfinancial value (2): It can improve retention
and associate satisfaction.

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Use Case Value Feasibility

7. Automated Text Creation Increased revenue (3): More-frequent and more- Technical feasibility (4): LLMs and interfaces like
GenAI language models create content for digital accurate communications improve the customer ChatGPT make this highly feasible in the near
and physical marketing and merchandising response to offers and communications outreach. future.
activities, such as ad copy, product descriptions, Increased efficiency (4): Retailers should expect Internal readiness (2): There is potential for
product attribute identification and management of significant impact from automation on the significant disruption in process and workforce
product information. workforce, as human effort plunges and volume of that retailers must prepare for to make this a
content rises. successful transition.
Managed risk (1): This may increase risk in certain External readiness (3): Customers are ready to
ways — for example, using copywritten material or receive these communications.
accidentally making a mistake that will have an
impact on the consumer.
Nonfinancial value (1): This enables formation of
stronger relationships, based on values and
alignment with key customer groups.

8. Social Commerce Increased revenue (3): Revenue from social media Technical feasibility (3): Interfaces like ChatGPT
Conversational commerce speeds up and improves channels is increasing. have already shown better predictive capabilities
success rates of social engagement in generating Increased efficiency (3): More tools result in for chat.
purchases as a result of a consumer-to-brand greater productivity. Internal readiness (3): Retailers are hungry to
interaction on social media platforms. Managed risk (1): It increases risk exposure. grow social commerce.
Nonfinancial value (4): It improves relevance to External readiness (4): Consumers are adopting
customer lifestyles. social commerce at an accelerated rate,
particularly in fashion, beauty and apparel
categories.

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Use Case Value Feasibility

10. Personalization for Customers Increased revenue (3): Benefit will vary Technical feasibility (3): ChatGPT and similar
It improves the accuracy of the personalization significantly across industry segments, as well as interfaces have already presented ways to
process by leveraging content discovery and digital selling versus physical selling. accomplish this.
creation and helping LLMs and interfaces create Increased efficiency (3): GenAI will make Internal readiness (3): Retailers already employ
relevant, individualized interactions between a personalization more possible by enabling personalization techniques with limited success.
company and its audiences to enhance the translation, natural language and context. There will be challenges with obtaining and
recipient’s experience. It uses insight based on Managed risk (1): This may increase risk. For consolidating accurate customer data from many
unique recipient behavioral data. example, the level of personalization may feel sources. Retailers will also have to adhere to data
inappropriate for some customers, and it will be security and privacy regulations and legislation.
very difficult to predetermine what may offend any External readiness (4): Customers want
one person. personalized offers.
Nonfinancial value (3): It helps meet higher-level
customer needs of loving, belonging and esteem.

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Use Case Value Feasibility

11. Best-Fit Apparel Technology Increased revenue (4): Apparel returns are a major Technical feasibility (3): There are vendors today,
GenAI image search and generation models further drain on profits. Customers appreciate the ability and GenAI technology should improve the ability to
improve the customer’s decision-making capability to see how things will look on their body types. customize models.
to select accurate products, based on shape, drape, Increased efficiency (3): The large return rates are Internal readiness (3): It’s not difficult from an
fit and size, that enable satisfaction and reduce a productivity issue in the store and warehouse. internal perspective.
return rates. Inventory is shifted around to locations that it may External readiness (2): There are many concerns
not have been intended for and often isn’t placed from customers who are reluctant to share
back on sale. pictures of themselves in undergarments or other
Managed risk (3): It varies from a risk perspective. forms of personal information. GenAI should help
If not successful, it could cause customer to alleviate some concerns.
dissatisfaction.
Nonfinancial value (2): Customers can feel more
empowered and connected with the retailer.

Use cases are scored on a 0 to 4 scale for each dimension, with 0 being the lowest and 4 being the highest. See Tables 6 and 7 for definitions of the scoring
scale.

Source: Gartner (July 2023)

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Table 3: Scoring Breakdown: High-Value, Low-Feasibility Use Cases

Use Case Value Feasibility

9. Customer-Centric Merchandising Increased revenue (4): Aligning merchandise Technical feasibility (2): Many solutions attempt
Content discovery and virtual assistants aid assortments to customers through planning to do this today. There is a disconnect between
merchandising associates in determining products, across channels and locations is, first and business process and technology, as most retailers
services and experiences to be offered to foremost, the preeminent way to improve inventory still use Microsoft Excel to manage planning and
customers, including substitutions and deletions at productivity, sales and profits. analysis within the category hierarchy.
touchpoint, to maximize sales, margin, inventory Increased efficiency (4): Merchandising and Internal readiness (2): Extensive process
and customer satisfaction. planning staff members typically require nearly the reengineering is required, as well as new skills,
entire workweek to identify problems and tools and so on.
opportunities, yet often only a small portion of External readiness (3): Customers are ready for
those opportunities are addressed through some more-curated assortment planning that meets
type of execution. their needs.
Managed risk (3): Merchandising based on
customer behavior models lowers the risk of
inaccurate planning.
Nonfinancial value (2): There is better alignment
with customer behaviors.

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Use Case Value Feasibility

12. Product Development, Selection Increased revenue (4): All retailers select products Technical feasibility (2): Retailers have already
GenAI is applied to simulation, discovery and to include in their assortment, while some develop been accelerating the use of digital product life
content generation for selecting and developing products internally or with suppliers. Improving cycle management (PLM) software and are
products for sale that align with customer needs success rates for new products has direct sales seeking to improve performance in this area.
and organizational sustainability goals. It includes and profitability implications. Internal readiness (2): There may be resistance
processes such as digital prototyping, attributing Increased efficiency (3): Speed is a top priority. from creative resources. Retailers will need to
and testing for products, and life cycle Reduction of costs with digital prototypes can be a improve collaboration with suppliers.
development. major time and money saver. External readiness (3): There is generally accepted
Managed risk (4): Improved success rates for new opportunity across the supply chain.
products reduce risk.
Nonfinancial value (3): Improved success for
product development, less sampling and
transportation, and greater production accuracy
are all part of sustainability.

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Use Case Value Feasibility

13. Automated Image Creation Increased revenue (3): Conversion rates typically Technical feasibility (3): DALL-E and others are
Image and video content creation is used for improve significantly when images are more making this increasingly possible.
improved digital and physical marketing and realistic representations of products in various Internal readiness (2): This will impact the process.
merchandising activities, such as product situations. But it’s not overwhelmingly disruptive, as it’s more
development, display, messaging, signage and Increased efficiency (4): Traditional means of about extending existing image management.
management of product information. image creation are very expensive and time- External readiness (2): Customers are ready for
consuming. Leveraging this ability will save this.
production costs and labor.
Managed risk (1): There is a low-level risk of
copyright violation, but it is not significantly
increased over traditional means of image capture.
Nonfinancial value (3): Speed and flexibility of
product and service offerings are greater.

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Use Case Value Feasibility

14. Skills Management for Associates Increased revenue (3): Retail requires a skilled Technical feasibility (2): There are several uses in
GenAI techniques evaluate and predict associate workforce to effectively execute most required the market today.
performance and track skills data. When applied to operational tasks. Labor is one of the largest Internal readiness (2): Retailers require process
workforce management (WFM), it is used to expense areas for retailers, but an effective change and face some legacy lack of trust.
automate skills-based workforce scheduling and workforce is also one of the greatest drivers of External readiness (2): It will feel natural for
generating operational and personalized training revenue. associates. Some labor law changes may be
programs. Increased efficiency (4): By considering a worker’s coming that impact how this use case is applied.
complete skill set, organizations can align talent to
work, while considering how the work will be
completed, improving effectiveness and ensuring
the right employee is doing the right task at the
right time. This approach will enable workforce
planning, inform worker skills development, and
help to navigate talent shortages and changes to
the nature of work.
Managed risk (2): There are risks of training bias
and potential litigation if it is not carefully
administered.
Nonfinancial value (4): It directly contributes to
associates’ work-life balance and feeling of
control.

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Use Case Value Feasibility

15. Customer Behavior Modeling Increased revenue (4): Customer behavior models Technical feasibility (2): Data availability is still an
It deploys content discovery and knowledge are pivotal for the future of retailing and, therefore, issue and will be for quite some time.
management to improve predictive models about will provide tremendous business value when Internal readiness (1): Back-office processes
customers from internal and external data sources, applied across many business use cases. today are not designed to be customer-centric, so
for marketing, merchandising, digital commerce, Increased efficiency (3): Deployment of inventory, much work will be required to achieve benefits.
supply chain and customer service. Behavior associates and other assets can be more highly External readiness (2): Laws and regulations are
models provide a view of customers’ browsing and targeted, leading to less waste. shifting continually, and use of customers’
purchase activities, taking advantage of natural Managed risk (4): The accurate understanding of identifiable data is an ongoing question.
language prompts used by customers and customer behavior improves sales and efficiency
associates. and will reduce business risk through early warning
and ability to shift focus more quickly.
Nonfinancial value (4): Loyalty has an indirect but
vital impact on business value, and can be
enhanced through better understanding and use.

Use cases are scored on a 0 to 4 scale for each dimension, with 0 being the lowest and 4 being the highest. See Tables 6 and 7 for definitions of the scoring
scale.

Source: Gartner (July 2023)

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Table 4: Scoring Breakdown: Low-Value, High-Feasibility Use Cases

Use Case Value Feasibility

4. Customer Order Substitution Increased revenue (2): Substitution should never Technical feasibility (4): It is highly possible and is
It uses content discovery and knowledge be relied on as an operational mode. But when the already implemented in some retailers, but GenAI
management, as well as simulation and prediction, requested item is not available, a likely substitution will help make it more successful through better
to improve substitution satisfaction for customers may save the sale, retaining revenue. prediction.
when the desired or requested item is unavailable at Increased efficiency (3): Accurate and Internal readiness (4): It is not difficult to
the time of order fulfillment. Predicting and predetermined substitutions speed the fulfillment implement.
selecting the next best alternative items will satisfy process. External readiness (4): As long as required rates of
customer expectations and save the sale. Managed risk (2): Customers have less substitution remain relatively low, customers prefer
dissatisfaction and less dissonance with what is to have an alternative rather than nothing.
substituted or with the lack of any alternative
presented. When better managed, a substitution
can change from a negative event to a positive
event for the customer.
Nonfinancial value (2): It leads to better customer
satisfaction and a feeling of well-being.

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Use Case Value Feasibility

16. Customer Subscription Services Increased revenue (2): Subscription models tend to Technical feasibility (3): Mobile apps, new chat
Simulations and digital twins develop in-depth lock the customer into transactions over longer interfaces and localized fulfillment all facilitate this
behavior and style profiles for individual consumers periods of time. use case.
as part of a paid subscription model that offers Increased efficiency (3): Predictability is higher for Internal readiness (2): It is easily implemented to
enhanced services. For long-life-cycle retailers, this demand signals. augment existing processes.
is largely a paid membership that offers services Managed risk (2): Retailers have more difficulty in External readiness (3): Subscription models are
(for example, Walmart+ and Amazon Prime). determining the value of customers when common in media.
considering the costs of services and products.
Nonfinancial value (3): Customer satisfaction and
trust increase.

Use cases are scored on a 0 to 4 scale for each dimension, with 0 being the lowest and 4 being the highest. See Tables 6 and 7 for definitions of the scoring
scale.

Source: Gartner (July 2023)

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Table 5: Scoring Breakdown: Low-Value, Low-Feasibility Use Cases

Use Case Value Feasibility

17. Dynamic Pricing of Products Increased revenue (2): Only a portion of items Technical feasibility (2): In-store execution is a
Content discovery, knowledge management, offered by most retailers will be priced dynamically. problem due to in-flux customer interactions,
simulation and prediction for experiences and Increased efficiency (2): By leveraging inventory in signage and shelf edge label requirements.
related products identify the optimal price, based the pricing decisions, it will make elimination of Internal readiness (2): Presently, this is not part of
on real-time supply and demand, promotional undesired inventory more possible. But present the regular business process for most retailers.
cadence, competitors’ pricing, and customers’ processes make this very inefficient. External readiness (2): There are many varied
behavioral profiles. Pricing for services, Managed risk (3): It reduces excess inventory. jurisdictional legal requirements around pricing.
experiences and related products is dynamic, as it Nonfinancial value (2): It offers a faster response
leverages inventory availability in the calculation. to the marketplace.

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Use Case Value Feasibility

18. Immersive Retail Experiences Increased revenue (2): The impact varies Technical feasibility (2): It is improving, but still
GenAI creates immersive shopping for customers substantially by industry segment. Home has some way to go.
in physical, virtual or combined environments. It furnishings and improvement are major categories Internal readiness (1): Process change, associate
includes the physical store and digital touchpoints today. Its application in food or consumables is readiness and skills are in question.
or emerging virtual realms. less clear. Significant changes in revenue are External readiness (3): Recent research from
unlikely in the next few years. Klarna indicates that 81% of Gen Z and millennial
Increased efficiency (1): Immersive experiences consumers believe augmented reality (AR) will
are likely a drain on efficiency at least in the short enhance the physical shopping experience. 1
run.
Managed risk (2): As a new channel, it represents
significant potential risk.
Nonfinancial value (2): It moves retailers toward
co-creation, which provides the customer with
greater ability to self-actualize.

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Use Case Value Feasibility

19. Real-Time Pricing Increased revenue (3): Customers expect pricing Technical feasibility (1): It will require more in-
GenAI simulation and digital twins will enhance consistency across channels, but changing store use of the customer’s mobile device during
retailers’ abilities to manage and adjust item physical store prices at the same frequency as check-out.
pricing, personalized for customers in real time, digital prices is impractical and creates a dilemma. Internal readiness (1): More pricing changes have
across all channels, leveraging the customer’s Increased efficiency (2): At least initially, this may implications on business processes and
mobile device. seem more difficult. But by removing manual price profitability.
overrides, it is more efficient. Some customers are External readiness (1): There are some legal
still having issues with use of mobile devices in compliance issues that vary by jurisdiction. Some
stores (for example, Kroger struggling with mobile- customers are comfortable using mobile devices in
only offers). the store for coupons and transactions, but many
Managed risk (2): This has to be carefully are still not ready.
managed, as profitability can be negatively
impacted. Policies must be revised.
Nonfinancial value (2): It improves customer trust.

20. Co-creation of Products Increased revenue (2): Custom products can Technical feasibility (2): GenAI is required to make
Content creation, simulation and design usually enable retailers to demand a premium this a real possibility.
alternatives enable customers to share personal price. There is an opportunity to create new sales Internal readiness (1): Retailers generally
preferences through co-creation of products, touchpoints for digital immersive experiences and approach customers as a mass opportunity, and
services and experiences in physical and digital non-fungible tokens (NFTs). Significant revenue this will be difficult to absorb in the current
realms, including the metaverse. opportunities are limited for the next several years. business processes.
Increased efficiency (1): It is very difficult for the External readiness (1): Klarna recently reported
retailer to execute at any scale. that 43% of Gen Z customers believe that virtual
Managed risk (3): There is a risk to brand integrity. shopping will surpass physical shopping in the
Nonfinancial value (3): It helps meet customers’ next two decades. Ownership of intellectual
needs for self-actualization through co-creation. property is an issue. 1

Gartner, Inc. | G00797408 Page 18A of 21A

Use Case Value Feasibility

Use cases are scored on a 0 to 4 scale for each dimension, with 0 being the lowest and 4 being the highest. See Tables 6 and 7 for definitions of the scoring
scale.

Source: Gartner (July 2023)

Gartner, Inc. | G00797408 Page 19A of 21A

Table 6: Definitions of the Value Ratings

Rating Definition

N/A Not applicable. The use case is not intended to create value in any way.

0 Negligible. It offers promise for value in the market, but it is doubtful that
enterprises gain any real value.

1 Low. It offers a slight process improvement. It is difficult to translate into

increased revenue or cost savings.

2 Moderate. It offers incremental, but significant, improvements to existing

processes. These improvements will result in increased revenue or cost
savings for an enterprise.

3 High. It enables new ways of performing horizontal or vertical applications,

resulting in significantly increased revenue or cost savings for an enterprise.

4 Transformational. It enables new ways of doing business within and across

industries. This will result in major shifts in industry dynamics.

Source: Gartner (July 2023)

Gartner, Inc. | G00797408 Page 20A of 21A

Table 7: Definitions of the Feasibility Ratings

Rating Definition

0 Impossible. There is a very low chance of enterprises feasibly implementing

the use case.

1 Challenging. It is possible to implement the use case, but enterprises must

overcome barriers with significant efforts.

2 Complicated. Enterprises can implement the use case, but will face moderate
obstacles.

3 Doable. Enterprises can implement the use case with minor obstacles.

4 Easy. The use case is within the capabilities of most enterprises to adapt.

Source: Gartner (July 2023)

Gartner, Inc. | G00797408 Page 21A of 21A

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