What: Organisations that master both AI and organisational learning gain unprecedented advantages in managing retail uncertainty and complexity.

Why it is important: "With retailers losing 4.5% of gross sales due to inefficiencies, and only 15% of organisations effectively combining AI with organisational learning, this represents both an urgent challenge and massive opportunity for the retail industry.

The MIT/BCG study reveals a critical transformation in how organisations learn and adapt through AI integration. While only 15% of organisations qualify as "Augmented Learners," these leaders demonstrate significantly better capabilities in managing uncertainty and driving performance. The research shows that companies combining organisational learning with AI-specific learning are 1.6 to 2.2 times more likely to effectively manage various types of uncertainties.

The study emphasises three key areas of enhancement: knowledge capture, synthesis, and dissemination, with particular focus on how AI can transform tacit knowledge into actionable insights. Organisations must simultaneously improve both organisational and AI-specific learning capabilities, choosing projects that promote exploration over mere efficiency gains. The findings highlight the importance of responsible learning practices, ensuring that knowledge capture and dissemination align with established learning principles and values.

IADS Notes: Recent retail industry data powerfully demonstrates the article's findings about the transformative potential of combined AI and organisational learning capabilities. A June 2024 study revealed that the retail sector is leading AI deployment across industries, with nearly half of retailers already seeing increased revenue from their AI initiatives. However, a November 2024 report highlighted that retailers still lose 4.5% of gross sales due to inefficiencies, underscoring the vast potential for improvement. Success stories showcase the impact of effective implementation: Walmart processed 850 million data points to enhance their product catalog quality, while The Mall Group achieved 30-45% increases in email engagement rates by combining GenAI with machine learning.

BCG report: Learning to manage uncertainty with AI