Transcript
A (0:00)
Dollar General has named Travis Nixon as its senior Vice president of Artificial Intelligence optimization. According to Retail Dive, Nixon is tasked with leading Dollar General's quote, business process management initiatives, end quote, by using AI to promote optimization across areas such as supply chain, store operations and merchandising. Nixon most recently served as the head of AI for Dropbox's security division and previously held other leadership roles at Meta and Microsoft and Waqas. How long before every retailer has a chief AI officer?
B (0:36)
So before I answer this AI question, I'd like to remind all of us about another trend. A few years ago it was called the Chief Digital Officer and a whole bunch of companies went out and there's some statistics about more than half the companies at one point had a Chief Digital officer. And now if you look back, you will discover that very few companies have those roles left. And usually if either those roles are tacked onto somebody's other responsibility. So you'll be, you know, you're the chief merchant plus the chief Digital officer, or you're a CIO and the chief. So there's, so it's because the problem with these standalone roles is that these individuals are dependent on other executives, other business partners to actually deliver, deliver on what they're promising. They don't own the infrastructure, they don't own the application, they don't own the store operations. So for each one of them to have an impact, they need to work with somebody else. And, and as they do that, they, they, they find that it's harder to do than, than before. There was a report that was published by, a few years ago, I, I want to say by a World Economic Forum, and they took the, the CDO title and they said, okay, you know, by the way, the, the lifespan of a CDO was less than two years eventually. So they call it. So they start with the chief dazzling officer, then this person becomes a chief disconnected officer, then this person becomes a chief depressed officer, and then they exit the company. So I don't, I don't want to say that AI will, will go through the same cycle, but I think we have to be careful because AI will become part of the business it is in. It has to be in the business. So everybody has to be aware of AI. Everybody has to be, you know, receptive to the technology ideas that are coming through it and sort of permeating the business. That's how this will last. I think we are going through a phase in which these roles will be effective. I think they'll raise awareness. I think they'll. And eventually These roles will get absorbed inside the organization. Your chief merchant has to know how to plan using AI. You know, the merchandising planning has to be enabled by AI and the merchant who is responsible for it will do it naturally. So the standalone drone exists until it becomes, quote unquote, a transformation job. And at some point it goes away. So that's my sense that I think it'll be fashionable and effective for a period of time, but I don't see this lasting for more than five years.
