🛒 Instacart's AI-Powered Caper Carts
Instacart is expanding its AI-powered Caper Carts, aiming to have them in thousands of stores by the end of 2024. These carts, which help shoppers skip checkout lines and calculate item totals, are seen as a key growth driver. CEO Fidji Simo said, "We made an early bet that smart carts would be the winning technology for transforming the in-store grocery experience." This week, Instacart is introducing these Caper Carts to McKeever’s Market & Eatery and Price Chopper, enhancing the shopping experience.
📊 The AI Hype in Retail
The AI craze is sweeping the retail industry, with many companies experimenting with AI in smart carts and self-checkouts. According to FactSet, 199 of the 500 S&P 500 companies mentioned "AI" in their earnings calls between March 15 and May 23, 2024, setting a new record. Instacart’s Caper Carts not only bill items but also sync loyalty accounts, providing customized coupons and advertisements. Despite some shopper skepticism, the company believes these carts will drive more significant purchases.
🚀 AI Generative Misses
Not all AI applications hit the mark. Instacart previously faced criticism for using generative AI to create recipe images, leading to bizarre results. A Business Insider report mocked an image for "Grilled Salmon Ceaser Salad," showing a strange fruit-and-vegetable hybrid. Amazon also faced issues, discontinuing its Just Walk Out technology in US stores, as it required human reviewers. These incidents highlight the challenges and missteps in implementing AI technologies.
🌍 AI's Ubiquity and Future
AI is permeating every industry, from AI toothbrushes to AI whiskey. Some experts warn of "AI washing," where companies make inflated AI claims. Douglas Dick from KPMG cautioned against overpaying for AI tech, while Oxford’s Sandra Wachter urged for a balanced discussion on AI’s practical uses. Despite the hype, the AI sector saw $50 billion in investments last year. While giants like Nvidia show growth, many AI companies must still prove their worth. The future of AI depends on tangible returns and overcoming current skepticism.
Are AI shopping carts really making our lives easier?
