Data first, AI second.
Implementing AI before controlling your data means stepping forward with no foundation.
Implementing AI before controlling your data means stepping forward with no foundation. Data is the brain. AI is the mouth and the hands, and without the brain in place, they have nothing accurate to draw on. AI tools are changing every day and you shouldn't put all your eggs in a platform that you do not own. The time worth spending now is on making the source of information clean, so that whichever tool is added onto your platform is working with information you own.
This is about why control of the data has to come first, what changes once it does, and what to do if that data does not exist yet.
Don't spend time building AI agents or processes if you do not have control of all your data
Before any AI agent or automated process is built, the starting point is control: knowing what data exists, where it lives, and whether it can be trusted. Finding it is not a preliminary step to rush past. It is what makes clear exactly what is available, and every possibility that opens up once it is usable, which is the groundwork any AI decision that follows depends on.
Imagine sending out a brand new team member to the shop floor without any training or understanding of who your brand is, why they are there and what is expected of them. That is what happens when you build an AI process without the data foundation.
AI is the new productive procrastination
Building AI or automation on top of data that is not yet clear produces motion, not progress. It keeps a team busy, but busy toward what? There is real pleasure in building things, and that pleasure can be mistaken for momentum. Without first understanding how a project needs to be scoped from end to end, the result disappoints regardless of how quickly it was built. AI can complete the tasks in front of it in that first instance, but whatever it produces sits on ground that has not been tested. Over time you will feel the AI start behaving in ways that you did not expect and producing sub-par results.
Creating the scope of work
The scope of that work starts with collecting every data source and cleaning it, source by source, before any automation decision is made. That process is what reveals where AI or automation actually belongs once it is added, rather than guessing at it in advance. You may then decide there is automation in the collection and cleaning of the data.
You have data, but you do not know how to clean it, and you want to move forward with AI now
Most AI large language models are built on a range of different information and data sources, and the mix behind each one shapes what it can and cannot do reliably. xAI's Grok draws on posts from X, the platform formerly known as Twitter, real-time access it was built around from launch in November 2023 (Source: xAI, 2023). OpenAI's ChatGPT works from a different mix, incorporating Reddit's data under a partnership the two companies signed in May 2024 (Source: OpenAI and Reddit, 2024).
Without an organisation's own data included and controlled, its AI can return the wrong information or hallucinate an answer altogether, and without solid foundations underneath it, the output can drift in a direction nobody expected, leaving the business to work out why.
What if I do not have data yet
That question changes for a business that is new, or entering a category or market where the information does not exist yet. In that situation, AI needs to be treated differently from the outset. It is well suited to market research, document creation and speed of work, where a person supervises the individual task rather than the AI running unchecked.
Even then, it still needs to be fed information to work from. Asking AI to draft an employee manual without the relevant awards and workplace law behind it will produce a document that gets some of it right and the rest wrong, which means heavy auditing before it can be relied on.
Not sure where to start
The first move is setting up a data structure, not choosing a tool. Retail Revolution Co can talk through what a business already has, what it needs, and how to build that structure so it holds.
Getting control of the data first is what gives any AI or automation added afterward a chance to last.
Common questions
How do you get started with AI in retail?
Getting started with AI in retail begins with the data behind it, not the tool. Collect every data source, clean it, and only then decide where automation or AI can sit. Businesses without existing data can still use AI for market research and document drafting, provided the output is checked closely.
What if I do not know where my data is?
Listing your systems in use, including systems that you use to communicate to your team are all the data points that you have in your business. Once you can identify those tools, then you can start to gather the data.
Jennifer Hansen
Founder of Retail Revolution Co. Her background covers 25 years in retail and 15 in senior leadership across sales, product range, operations, systems, store planning and marketing. Retail Revolution Co advises retailers in Australia and international brands entering the Australian market..
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