The Importance of Artificial Intelligence in Improving True Value Company's Profitability

This speech discusses the benefits of adding Artificial Intelligence as a resource in True Value Company's budget to improve business operations and succeed in the online and offline retailing industry. It highlights the impact of AI on profitability, the need for digital transformation, and the success of AI adopters like Walmart. The speech concludes by emphasizing the importance of making AI a significant part of the company budget to enhance digital capabilities and offer better consumer experience.

Public Speaking

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
The beneficial impact of AI on profitability of True Value Company is being ignored. It is
important for businesses to introduce Artificial intelligence as resource in order to improve
business operations and succeed in the online and offline retailing industry (Loske & Klumpp,
2021). This speech focuses on benefits gained from adding Artificial Intelligence as a resource in
the company budget.
MAIN BODY
I am seeking to your attention the fact that The True Value company is facing a bleak future
because of high intense competition prevalent in the retail industry. E-commerce giants such as
Amazon and other hardware retailers in US. The company generated revenue lower than 500
million in the first quarter of 2021 which showcases that firm is not able to attain high
profitability during increase in online shopping (True Value Company, 2021). The company also
does not have a strong online presence and inability to build digital capabilities can affect long-
term survival of the firm. Therefore. It is necessary to take steps for encouraging digital
transformation at True Value Company which can be initiated by focusing on Artificial
Intelligence.
Adoption of Artificial Intelligence technology is not new in US as many small business
firms are using AI technology in at least one of their functions to enhance business of
performance. This is evidenced by the statistical data of International Data Corporation that the
global expenditure on Artificial Intelligence is expected to increase in the next four years from
$50.1 billion currently to more than $110 billion by the year 2024 (Worldwide Spending on
Artificial Intelligence Is Expected to Double in Four Years, Reaching $110 Billion in 2024,
According to New IDC Spending Guide, 2020). The lack of company investment in Artificial
Intelligence is evading the respective company from exploiting lucrative opportunities
introduced by usage of Artificial Intelligence. As per the Boston Consulting group business firms
who offer personalized experiences by integration of advanced digital technologies and usage of
propriety data are able to enhance revenue by 6% to 10% compared with business firms who do
not utilize digital technology (Artificial Intelligence: How AI Is Changing Retail, 2021).
In order to solve the problem of increasing competition, the True Value company needs to adopt
AI technology to enhance various business processes and improve consumer experience.
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Developing AI capabilities is not only essential for attaining high profits currently but also helps
business firms prepare for heavily digitized future and survive for long time (Moore, Bulmer &
Elms, 2022). The fact supporting this statement is that according to a Deloitte Survey 20% of AI
adopters have stated that AI helps the company modernize data infrastructure and gain
competitive advantage. While 19% adopters have reported that Artificial Intelligence increases
accessibility to latest technologies and assists in gaining competitive advantage (Thriving in the
era of pervasive AI, 2020).
When employees are empowered with the best technology they ae able to enhance consumer
experience and deliver additional value which increases consumer retention. True Vale company
will be able to construct an empowered workforce and improve business processes to succeed in
the retailing industry. An example of AI adopter retail firm gaining industry success is Walmart.
The company earned revenue of $559 billion in the year 2020 which is more than its close
competitor Amazon (Walmart Revenue Hits $559 Billion For Fiscal Year 2020, 2021). The
success of Walmart during the pandemic can be contributed to recently developed capabilities of
the company.
Walmart utilized deep learning AI technology to offer online consumers item substitution
solution which examines different variables to make more personalized substitutions for
consumers. In addition to this the company acquired AI company Zeekit to offer consumers
virtual fitting rooms and enhance their experience (AI at Walmart – Comparison to Amazon, and
Two Unique Use-Cases, 2021). This helped the firm provide exceptional consumer experience
and gain better success in the pandemic in comparison to Amazon.
True Value company needs to make Artificial Intelligence technology a part of its resources
and include it in budget to improve digital capabilities and empower employees to offer better
consumer experience. Continuing the same path of low digital abilities and avoiding AI
technology in the company will decrease overall labour costs of the firm as AI acts as a
replacement for human labourers in case of repetitive tasks (Rodgers & et al., 2021). As
competition firms such as Ace hardware and Home Hardware stores develop AI capabilities, true
value will be considered outdated by the consumes which will increase consumer turnover.
Consider the opposite, imagine True Value company maximising profitability through online and
online channels by enhancing consumer experience, personalization with the help of AI enabled
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insights and improvements. This future can be gained by True Value Company by investing in
AI and making it part of company budget.
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CONCLUSION
The True Value company needs to make Artificial Intelligence technology a significant part
of company budget in order to enhance digital capabilities and offer better consumer experience.
Business firms all over the world are adopting AI technology to gain competitive advantage and
it has supported success of many business firms during the pandemic. Building Ai capabilities is
essential for survival of the True Value Company. The first step towards AI adoption is to gain
deep understanding of AI in context of current business problems at the true value company.
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REFERENCES
Books and Journals
Loske, D., & Klumpp, M. (2021). Human-AI collaboration in route planning: An empirical
efficiency-based analysis in retail logistics. International Journal of Production
Economics, 241, 108236.
Moore, S., Bulmer, S., & Elms, J. (2022). The social significance of AI in retail on customer
experience and shopping practices. Journal of Retailing and Consumer Services, 64,
102755.
Rodgers & et al., (2021). Artificial intelligence-driven music biometrics influencing customers’
retail buying behavior. Journal of Business Research, 126, 401-414.
Online
AI at Walmart – Comparison to Amazon, and Two Unique Use-Cases, 2021. [Online] Available
through < https://emerj.com/ai-sector-overviews/ai-at-walmart/>
Artificial Intelligence: How AI Is Changing Retail, 2021. [Online] Available through <
https://global.hitachi-solutions.com/blog/ai-in-retail>
Thriving in the era of pervasive AI, 2020. [Online] Available through <
https://www2.deloitte.com/us/en/insights/focus/cognitive-technologies/state-of-ai-and-
intelligent-automation-in-business-survey.html>
True Value Company, 2021. [Online] Available through < https://www.zoominfo.com/c/true-
value-company-llc/63735176>
Walmart Revenue Hits $559 Billion For Fiscal Year 2020, 2021. [Online] Available through
https://www.forbes.com/sites/shelleykohan/2021/02/18/walmart-revenue-hits-559-
billion-for-fiscal-year-2020/?sh=78ea86d83358
Worldwide Spending on Artificial Intelligence Is Expected to Double in Four Years, Reaching
$110 Billion in 2024, According to New IDC Spending Guide, 2020. [Online] Available
through https://www.idc.com/getdoc.jsp?containerId=prUS46794720
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