APAC Retailers Leverage AI for Enhanced Loss Prevention: Transitioning from Reactive Shrink Control to Real-Time Detection and Efficiency Gains

Retailers in Asia Pacific are increasingly utilizing generative AI and automation to enhance efficiency and reduce losses, shifting from reactive shrink control to real-time detection strategies. Experts George Pepes from Zebra Technologies and Guillaume Sachet from KPMG highlight AI’s critical role in operational efficiency amid rising costs and tight margins. By analyzing transactions and inventory, AI surfaces patterns and discrepancies, facilitating informed decision-making. Loss prevention is a primary use case, utilizing technologies like RFID and computer vision to deliver predictive insights, thereby enhancing customer experience while addressing shrinkage. Financially, over half of retailers see returns exceeding 10% from AI initiatives, with one in five achieving over 30%. However, productivity gains are uneven, with 84% of store associates noting improvements, yet 88% struggle with accessing information. Moving towards real-time retail models will reduce friction in omnichannel journeys. Embracing AI is essential for gaining a competitive edge, with 82% of executives acknowledging its strategic importance.

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