Australia’s retail sector could unlock billions of dollars in value by 2030 through accelerated use of generative artificial intelligence (GAI), a new report finds.
Titled Australia’s Generative AI Opportunity, the report is a collaboration between the Tech Council of Australia and Microsoft.
It shows that GAI could contribute between $45 billion and $115 billion a year to Australia’s economy by 2030 through the improvement of existing industries and enabling the creation of new products and services.
Retail has been identified as one of four key sectors of the Australian economy to benefit from GAI, with the sector estimated to reap between $3 billion and $9 billion annually by 2030.
The key drivers of value for GAI in the retail sector are better customer support and personalised experiences, the report found, as well as streamlined backend operations. For example, the report claims GAI can automate 30 per cent and augment 32 per cent of the tasks performed by a shop sales assistant.
GAI can also improve the productivity of customer support workers by 14 per cent, as well as drive greater customer engagement and personalisation of products.
“Having invested heavily in omnichannel capabilities during the COVID pandemic, Australia’s retail industry is now primed to integrate generative AI into existing digital platforms,” Tech Council CEO Kate Pounder said. “This stands to benefit companies striving to innovate and stand out, and customers wanting better service and prices.”
Microsoft Australia chief technology officer Lee Hickin said GAI has become a transformative technology in 2023, with adoption growing across various sectors.
“These include several pilot programs being explored by our retail customers, as they look to automate processes, create personalised offerings and streamline operations.”
The other three key sectors identified in the report are healthcare, manufacturing, and professional and financial services. The report details potential use cases for GAI in each of these sectors and the subsequent economic value that could be generated using the technology.
The report added that industry and government are at a critical juncture in GAI adoption, with deeper collaboration needed for Australia to capture the economic benefits.
Tech Council and Microsoft said leveraging Australia’s comparative advantages in digital technology is key to spurring this collaboration. They include a large and highly skilled tech workforce, strong investment in digital infrastructure and a high level of cloud computing adoption.
The report also identified that technology capability, enterprise readiness, awareness and skills, and responsible AI are key barriers that industry and government face in capitalising on GAI.
The report was based on comprehensive economic analysis as well as consultations with industry, government and academia.