5 ways generative AI and data analytics will change customer relationships

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KPMG’s Australian Retail Outlook 2024 found that 51% of Australian retailers are interested in using data analytics and big data. Generative AI is the next highest priority for this year, with 34% of retailers interested in leveraging it.

This growing interest signals the pivots I see in not just retail but various industries across Australia. By using generative AI and data analytics, companies are well-placed to deliver highly personalised customer experiences. 

Here are five ways businesses can harness generative AI and data analytics to reshape customer engagements and foster stronger relationships.

Top 2 priorities for Australian retail leaders in 2024

Source: KPMG.

1. Personalised content

Generative AI is a powerful tool for creating compelling ad copy, social posts, and product descriptions. It tailors content to resonate with the target audience and keep marketing efforts relevant and engaging. This helps brands connect with customers, driving higher engagement and conversion rates.

Generative AI can analyse customer data from past interactions, purchases, and preferences, enhancing the accuracy of content. By analysing what customers view, click, or buy, it can deliver personalised recommendations and bespoke content.

2. Automated chatbots

Chatbots using generative AI draw from current customer data to respond to queries or issues. Traditional AI chatbots would leverage answers from existing scripts to provide customers with static responses. Chatbots using generative AI deliver human-like text responses in real-time, providing immediate and relevant replies to user queries. By accurately understanding user input, they offer an engaging customer experience that reduces the need for human intervention.

Moreover, the advanced capabilities of generative AI enable chatbots to resolve various customer inquiries. Customers receive consistent and personalised support, improving satisfaction and loyalty. SMBs striving to meet increasing customer demands can use AI-driven chatbots as a scalable and efficient solution for maintaining high service levels.

3. Proactive customer service

Generative AI and data analytics change how companies deliver proactive customer service. Predictive models might identify customer behaviours or potential issues, and the company can generate content or responses to fix those issues proactively. Doing so enables teams to engage with customers, offering solutions and information before the customer is even aware of a potential problem.

4. Optimising the customer journey

Generative AI can optimise the customer journey from the first interaction. Personalised advertising targets individuals based on their preferences and behaviours, capturing their interest with tailored content. When customers visit the store or website, generative AI could take the experience further by enabling them to view products in augmented reality, making the shopping experience more immersive and engaging.

SMBs can leverage generative AI to create unique interactions for each customer, not just meeting but anticipating their needs. For example, as customers navigate through the store or online platform, generative AI could provide personalised product recommendations based on real-time data from browsing and purchase history, enhancing the shopping experience with highly relevant offerings. This boosts customer satisfaction and loyalty while significantly increasing the likelihood of conversions. 

5. Automated and accurate insights

Generative AI can quickly process and analyse large volumes of data, providing customer service teams with precise and timely insights. Generative AI can also transform raw data into understandable, actionable intelligence and allows teams to respond proactively to emerging situations. With such rich data, companies can refine their strategic decision-making processes, ensuring alignment with current market demands and customer expectations.

Australian SMBs can leverage these advanced insights to maintain a competitive edge. In an environment where market conditions and consumer preferences change quickly, the ability to understand data and quickly adapt strategies is invaluable.


Generative AI and data analytics have begun redefining how SMBs interact with customers. By developing the right strategy, your company can engage with customers in meaningful and impactful ways. The examples above are among the key use cases I see at the moment. In future, new use cases will likely emerge.

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