Podcast Summary: The Agile Brand with Greg Kihlström®

Episode #655: AI and Automation in the Supply Chain with Nick Stewart, RSM
Release Date: March 26, 2025

In episode #655 of The Agile Brand with Greg Kihlström®, host Greg Kihlström engages in a comprehensive discussion with Nick Stewart, the US Consumer Products Retail Consulting Leader at RSM. The conversation delves into the transformative role of Artificial Intelligence (AI) and automation in the retail industry's supply chain and customer service sectors. Below is a detailed summary capturing the key points, discussions, insights, and conclusions from their dialogue.

1. Introduction to AI in Retail

Greg sets the stage by highlighting the pivotal role of AI and automation in revolutionizing retail operations, especially in the face of escalating tariffs, labor shortages, and cost pressures as we advance into 2025.

Greg Kihlström [02:09]:
"AI and automation are transforming retail operations from customer experience to supply chain efficiency. But as we move into 2025, retailers face increasing tariffs, labor shortages and cost pressures."

2. AI Transforming Customer Service

Nick Stewart elaborates on the evolution of AI in customer service within the retail sector. He differentiates between traditional AI implementations like basic chatbots and the advancements brought about by Large Language Models (LLMs).

Nick Stewart [03:46]:
"AI is not new. We've seen chatbots and machine learning in customer experience for quite a long time. But LLMs have really changed the game. They've become more humanized and can mimic human tasks more effectively."

He emphasizes that the true potential of AI lies in augmenting human customer service agents rather than replacing them. AI can help consolidate various data sets, enabling agents to provide quicker and more accurate service.

Nick Stewart [04:59]:
"AI is very good at pulling data forward, compiling it from multiple systems so you can normalize it, and then using LLMs to ask questions... You can make decisions really quickly that impact your customers and ability to deliver."

3. Balancing AI and Human Interaction

The discussion shifts to finding the right balance between AI-driven tools and human interaction. Nick suggests that retailers should implement workflows that allow customers the option to choose between AI assistance and human support based on their preferences.

Nick Stewart [07:30]:
"You have to offer both solutions to your customer and let your customer dictate what experience they want."

4. AI in Supply Chain Management

Greg and Nick delve into the application of AI in predicting and mitigating supply chain disruptions. Nick underscores the necessity of building a nimble infrastructure that leverages AI to make data-driven decisions swiftly.

Nick Stewart [10:24]:
"AI is very good at pulling data forward, compiling it from multiple systems so you can normalize it, and then using LLMs... You can make decisions really quickly that you can actually impact your customers and ability to deliver."

This capability allows retailers to manage inventory more efficiently, reducing costs associated with excess stock or stockouts.

5. Adoption of AI-Driven Analytics

The conversation moves to the adoption of AI-driven analytics in retail. Nick points out the challenges of traditional analytics platforms that require predefined dashboards and the limitations they impose on flexibility and responsiveness.

Nick Stewart [13:02]:
"The real opportunity becomes that natural questionability and the adoption is going to be really high because it doesn't require people to have anything more than a question."

AI-driven analytics democratizes data access, allowing employees across the organization to query data in real-time without relying heavily on data teams.

6. Impact on Employee Experience and Retention

Nick discusses how AI enhances employee satisfaction by automating mundane tasks and providing tools that make their jobs more efficient and meaningful.

Nick Stewart [16:51]:
"All of those things can really improve the employee experience and their output."

He also touches on the importance of upskilling employees to work alongside AI, ensuring that they remain integral to the decision-making process.

7. Future Trends and Staying Agile

Looking ahead, Nick emphasizes the need for an experimental culture within organizations to keep pace with rapid technological advancements. He advocates for continuous innovation and adaptability as key components of an agile brand.

Nick Stewart [19:47]:
"You need to create an experimental culture within your organization because at the pace that this is moving, you need not only the top-level people thinking about innovation, but everybody in the organization thinking about innovation."

Greg echoes this sentiment, highlighting the importance of strategic agility in navigating future challenges.

8. Staying Agile: Personal Insights

In the closing segment, Greg asks Nick about his personal strategies for maintaining agility in his role. Nick attributes his success to prioritizing customer needs, focusing on high-impact areas, and continuously adapting to market trends.

Nick Stewart [20:58]:
"I am very focused on making sure I look at priorities, what things are most important to our customers, and making sure I focus our time and internal folks on those that see the highest output."

Conclusion

Episode #655 of The Agile Brand provides valuable insights into how AI and automation are reshaping the retail landscape, particularly in enhancing customer service and optimizing supply chain operations. Nick Stewart from RSM underscores the importance of leveraging AI to augment human capabilities, improve decision-making, and foster an agile, innovative organizational culture. For retailers looking to stay competitive in a rapidly evolving market, embracing AI-driven solutions and maintaining flexibility are paramount.

Notable Quotes:

• Nick Stewart [03:46]:
  "LLMs have really changed the game. They've become more humanized and can mimic human tasks more effectively."

• Nick Stewart [07:30]:
  "You have to offer both solutions to your customer and let your customer dictate what experience they want."

• Nick Stewart [10:24]:
  "You can make decisions really quickly that you can actually impact your customers and ability to deliver."

• Nick Stewart [13:02]:
  "The real opportunity becomes that natural questionability and the adoption is going to be really high because it doesn't require people to have anything more than a question."

• Nick Stewart [19:47]:
  "You need to create an experimental culture within your organization because at the pace that this is moving, you need not only the top-level people thinking about innovation, but everybody in the organization thinking about innovation."

This episode serves as a crucial guide for retail leaders aiming to harness AI and automation effectively, ensuring sustained growth and enhanced customer satisfaction in an ever-changing business environment.