336: Blending AI Into Retail Operating Models

AI seems to be everywhere – events, suppliers, press, work meetings. In terms of exposure, we’ve seen a huge surge. But when it comes to embedding AI into retail operating models, most organisations are still finding their feet. The real opportunity lies not in flashy tools or futuristic hype, but in using AI to enhance decision-making, sharpen execution, and empower teams. The value is in the simple and scalable, rather than the sexy. In this episode, we explore how AI can blend into your operating model and business to amplify what you’re best at.

Listen to this episode and hear:

• Why reframing AI as augmented intelligence unlocks its real value in retail operations.
• Areas where AI is already augmenting retail operations in leading companies.
• Four principles to help you and your organisation to embrace AI more effectively.

 

Four principles to better embrace the AI opportunity

In this episode, Oliver Banks discusses the integration of AI into retail businesses and operating models, emphasising the potential to help retailers enhance decision-making and empower teams rather than being distracted by flashy, yet superficial, AI tools. Here are summaries of the four principles from the episode:

1. Start with what’s valuable, not what’s possible

Organisations should focus on identifying business opportunities for improvement rather than starting with AI tools and looking for possible problems they can solve. By prioritising pain points and inefficiencies, companies can better leverage AI to tackle significant challenges, ensuring that their efforts align with genuine business needs and not just the allure and excitement around new technology.

2. Focus on decisions and decision-making moments

The second principle highlights the importance of understanding where and how decisions are made within your organisation. AI can aid in making better, more informed decisions by optimising inputs and triggers for the decision, the decision-making process itself, and the outputs or resulting actions. By examining decision points and their impact, businesses can use AI to enhance decision-making processes, potentially overcoming human biases and improving efficiency.

3. Think augmentation before automation

Rather than fearing AI as a job replacer, try considering it as a tool for augmenting human capabilities. AI can amplify strengths and counteract weaknesses within a company, supporting human judgment and activities. By focusing on augmentation, companies can harness AI to enhance their competitive advantage without necessarily displacing employees.

4. Embed AI into the operating model, not bolting it on

For AI to deliver real value, it should be integrated into the core processes of the business rather than being treated as a separate entity and opportunity. Trust in AI is crucial for this integration, and retail businesses must ensure that AI applications are perceived as trustworthy by colleagues, customers and stakeholders. By embedding AI into the operating model, businesses can ensure that it adds value and supports their strategic objectives.

Share your reflections with Oliver

Reflect and consider these principles in your specific organisation. Reach out to Oliver to share your thoughts and reflections by email on oliver.banks@obandco.uk or by sending a message on LinkedIn.

Additional episodes to listen to next

AI is no longer on the horizon—it’s here. In episode 328: The Rapid AI Revolution In Retail, Oliver is in conversation with ChatGPT itself. Explore what AI is, how it’s already transforming retail, and what’s next as intelligence becomes embedded in everyday operations.

AI is a long-term trend for the industry. Listen to episode 327: The Essential Retail Trends And Themes Shaping 2025 and discover a broader strategic view of how this and other forces are shaping the industry, and what leaders need to focus on now.