Generative AI is (and will continue to) driving the retail sector – interview with José Fonseca, Procurement, Logistics & Asset Management Solutions Manager at Quidgest
Artificial Intelligence is not exactly a novelty, having left the realm of science fiction movies a long time ago. For years, we have been dealing with AI on a daily basis. Many companies use tools to optimize their business, increasing productivity and reducing costs. Often without realizing it, we are involved in this world that has been much talked about. For example, when we make an online purchase and receive recommendations or use a virtual assistant, common in any online store.
Generative AI “could increase the size of the Portuguese economy by 15,000 million euros”, equivalent to 6% of the Gross Domestic Product (GDP), and save, on average, more than 80 hours per year for each worker. These data were revealed by a study from Public First commissioned by Google. Released in the last quarter of 2023, the study concludes “that 86% of workers in Portugal think that generative AI tools will help them be more productive, with this value rising to 91% among office workers”.
“By helping everyone in Portugal to focus on more productive and creative tasks, AI can accelerate economic growth and, in turn, bring progress in social challenges”, can we read.
Among various conclusions, the study emphasizes that with the implementation of AI in companies “to assist in the preventive monitoring of risks and in improving workers’ cybersecurity skills, Portugal could mitigate 690 million euros in cybersecurity risks”.
1. What, in your opinion, are the major advantages of implementing generative AI solutions?
In the specific case of Quidgest, the major advantages of generative AI – an AI that creates new content or solutions from patterns learned in existing data – are enhanced by the combination of symbolic generative AI (as offered by our automatic code generation platform – Genio) and neural generative AI (with tools like Chat GPT). This synergy between the two approaches of generative AI – one that focuses on symbols and logical rules to mimic human reasoning (symbolic) and another that learns from examples and performs specific tasks, mimicking the human brain’s functioning (neural) – redefines the concepts of efficiency and innovation in software development.
Put another way: symbolic generative AI is excellent for automating and optimizing complex processes, improving efficiency, and reducing costs. It allows for large-scale customization and offers unique experiences to customers and users, besides facilitating the analysis of complex data, providing valuable insights for strategic decision-making and continuous innovation. Adding neural generative AI with natural language tools brings a new level of analytical and creative capability. This AI can understand and generate human language with surprising accuracy, allowing for more natural and intuitive interactions between humans and machines.
This combination leads to more holistic, robust, and capable information management systems that can address various challenges and applications in various sectors. This integration also drastically reduces the number of IT professionals needed to develop digital solutions while significantly accelerating the time to market. This is how Quidgest speeds up the delivery of digital solutions, positioning itself as a kind of one-stop shop with a competitive advantage in the current market.
2. Specifically in retail, what areas will be most impacted?
Generative AI is already (and will continue to) driving the retail sector, especially in operational efficiency and cost reduction areas. That is why at Quidgest, we are committed to developing systems that facilitate the automation and simplification of administrative and operational processes so that organizations can focus on more strategic activities with added value. We also see drastic transformations ranging from inventory management to supply chain optimization – improving inventory accuracy and logistic efficiency for a more agile product (and process) flow adapted to market needs.
Simultaneously, the customer experience is strongly impacted by virtual assistants and chatbots that provide a more personalized and available 24/7 service. This innovation extends to offer personalization, with targeted recommendations for a more relevant and engaging shopping experience for each customer.
Moreover, generative AI has proven useful in identifying consumer behavior and preference changes and detecting emerging trends. By collecting, processing, and generating reports with real-time data, it is also possible to develop and redirect Management, Marketing, and Sales strategies more swiftly and soundly, thus maximizing information-based decision-making with accurate and updated information.
3. How do you view generative AI today and all the interest that has been surrounding it? Are companies prepared or resistant to this (further) transformation?
At Quidgest, we view generative AI as a transformative force that impacts not just the technology sector but all business sectors and human activities. Therefore, our challenges are immense – ranging from the tendency towards overhype to the need for an ethical and legal framework for everyone’s responsible use.
Despite this, we do not see AI as a ‘threat’ to the human species – quite the opposite, we believe it is a tool that, when used correctly, complements and enhances human capabilities, helping us to expand our talents and reach new levels of productivity and innovation. Proof of this is our Genio platform, which for nearly 35 years has revolutionized code creation with productivity and precision that is humanly impossible! While manual writing can produce about 4 characters per second, Genio accelerates this code-generation process to a speed of 1.8 million characters per second.
Regarding the second question, I believe that companies’ reactions vary considerably regarding the impact of generative AI on their transformation processes. Some are excited and ready to embrace new technologies, seeing them as opportunities to stand out from the competition and thrive; others remain more cautious or even resistant, due to concerns related to system integration, implementation costs, or regulatory challenges, for example.
To support all types of companies on this journey, Quidgest offers innovative technological solutions, customized training, and continuous technical support. Our goal is to make digital transformation accessible and successful for any public or private entity, ensuring that all can take advantage of the benefits of this new technological era, regardless of their digital maturity stage or capacity to adapt to change.
4. There’s a notion that only large corporations are prepared and ready to implement these solutions. Is this true? Can small and medium-sized enterprises (SMEs) make the leap?
Generative AI is not exclusive to large corporations. As recent studies have shown, small and medium-sized enterprises can also benefit from generative AI solutions for various reasons.
Generative AI facilitates areas such as content creation, product design, administrative task automation, and customer support, according to Alliage Inc. A McKinsey report also highlights how generative AI increases productivity and operational efficiency, enabling businesses of all sizes and types to reallocate resources to more innovative and strategic activities. American Entrepreneurship Today adds to this perspective, noting that generative AI brings extra creativity and operational efficiency to smaller businesses, allowing them to keep up with market trends and scale quickly.
I believe the key lies in selecting solutions and tools that align with the unique and specific needs and challenges of each business, as generative AI offers significant advantages for all, helping them to optimize processes, boost innovation, and enhance customer satisfaction.
5. What are the most sought-after solutions, and what does your offering entail regarding retail and distribution?
Quidgest offers agile software solutions that meet a wide range of management challenges in digital transformation across various sectors such as Healthcare, HR and Training, Banking, Insurance and Financial Services, Document Management, Data Protection and Cybersecurity, and Public Management, among many others. In terms of Procurement, Logistics, Distribution, and Asset Management, my area of expertise, Quidgest provides a comprehensive set of solutions and functionalities that not only optimize available resources but also help meet the objectives of control, precision, quality, sustainability, and compliance with legal and regulatory requirements demanded by public and corporate entities.
These solutions encompass activities like Procurement Management, Orders with product picking lists by the supplier, Integrated Billing Management in the Ordering Process, Management of Logistics Centers, Warehouses, and Stocks, Management of Goods Ingress and Egress, Tracking, Fleet Management, Supplier Control and Evaluation, Infrastructure and Equipment Maintenance Management, to name a few.
Their productivity and differentiation distinguish these information systems, and also flexibility. By rapidly evolving to adapt to different contexts and needs (thanks to development in Genio), they are effectively applied in automating stock management; planning production or product replenishment; managing complex logistical chains involving different geographies or suppliers; optimizing routes with various types of transportation and/or load consolidation; storage across different facilities with varying occupancy levels and regulations; managing distribution chain risks; optimizing the use of real-time tracking and monitoring technologies; budgetary and financial management; or supporting citizens in order handling, problem resolution, and satisfaction evaluation. For more information, you can consult the solutions catalog available on the Quidgest website or request a demonstration from us.
Interview originally published in the HiperSuper newspaper.
