Should Category Managers be scared about AI? 👻
AI is on everyone’s radar, and for many, it is quite rightly raising concerns about job security and the future of our industry.
Right now, AI is still in its infancy, with applications being prioritised in areas like supply chain management and basic customer service. However, some brands are beginning to experiment with it in more complex areas, including category management.
As AI tools become more capable, category managers should be asking, will AI replace the work we do, or can it enhance it?
I’ve been reflecting on the role AI is starting to play in category management, its potential to transform the shopping experience, and where we, as category managers should be focusing our attention.
The future is coming fast—are you ready?
Don’t worry, your job is safe… for now 🤖
I’ve had loads of conversations about AI recently—it was a huge focus at the IGD Evolving Category Management conference earlier this month, Kantar had a whole series of AI webinars last week and it’s been a hot topic among my clients and colleagues.
Everyone is asking the same question: how will AI impact our roles?
We spend a lot of time pulling data and crunching numbers—tasks that AI can easily replicate. It’s almost certain that AI will influence the future of Category Management.
I believe it would be naïve to suggest category jobs are all safe in the long term, if businesses are going to invest in this space, they will look for savings.
Tools incorporating AI can analyse vast datasets in seconds and make real-time, data-driven recommendations. However, while AI will handle much of the analysis, it won’t replace the human ability to interpret insights, apply critical thinking and craft compelling narratives.
That’s where your focus needs to be: demonstrating your skills in storytelling and influencing.
Critical thinking and data literacy will also still be relevant because AI doesn’t always get things right.
AI can surface trends, but it’s up to great category managers to build stories that resonate with stakeholders and inspire action. Being able to communicate the "why" behind the numbers and influence decision-makers will be more important than ever.
The future of category management won’t just be about crunching data—it will be about turning insights into action and driving strategic decisions, so focus your development on those key skills!
AI can aid the shopping experience 💬
AI isn’t a magic wand that will fix your category’s problems; it’s a toolkit that can supplement more traditional methods to streamline the solutions you’re already recommending.
While AI can help personalise the shopping experience, the key is using it to enhance (not replace) the basics.
AI works best when it supports what shoppers actually want: simplicity, relevance, and confidence in their decisions.
Retailers like Tesco are laying the groundwork with AI tools like their "Little Helper" chatbot, which focuses on basics such as answering questions about product availability and tracking deliveries.
The potential for AI in retail, however, goes far beyond these basic tasks. Imagine chatbots evolving to suggest personalised recipe ideas based on your preferences, dietary needs, or seasonal produce, and then seamlessly adding all the ingredients to your basket for your next delivery.
AI-powered recommendations and personalised offers are already being tested by some retailers, and these innovations represent the next big step in transforming how we shop.
Incorporating AI in your category strategy ♟️
You don’t need to change your category drivers to incorporate AI.
Each of your category drivers should target a specific shopper behaviour. Whether it’s bringing more shoppers to the category, encouraging existing shoppers to spend more, or getting them to buy more frequently.
It’s likely that AI can help you unlock those opportunities. If you’ve identified education as a key driver, a chatbot can help deliver that. If you’ve identified a shopper demographic to target, AI can offer personalised recommendations to reach those shoppers.
Revisit your strategy and think about how AI might create a new tactic within each of your category growth drivers.
AI is no longer a distant future concept—it’s here and evolving fast. As category managers, it’s up to us to stay ahead, embrace the tools available, and focus on the skills that AI can’t replicate.
By leveraging AI to enhance, rather than replace, the work we do, we can remain at the forefront of category strategy and innovation.
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October 2024