In the third episode of "Retail Power Talks," we hosted Sadique Ahmed, the founder and CEO of Pathfinder, who is also the visionary behind Retail GPT. With expertise in retail intelligence and over 15 years of experience in the industry, Sadique has been a leader in the innovation of retail data analytics and customer engagement. In this podcast, he discusses the journey of Pathfinder, the revolutionary idea of Retail GPT, and the critical need to understand consumer behavior in today's rapidly changing retail environment.

In the podcast, Sadique explores the integration of AI technology, the value of customer insights, and the vision that propels Retail GPT to improve the retail experience. 

Q: What would you say about Retail GPT and Pathfinder?

A: Pathfinder has been in the business of retail intelligence for over 15 years, working with airports and shopping centers. We have always worked with data to understand what each retailer is clocking, since the numbers that come out of this have a revenue component that landlords take. This innovation was done by us, and we are well recognized in the industry for our work.

To better solve the problems our region faces, the biggest piece was knowing the customers. We were already capturing what each sale was at every receipt number, whether it was a coffee or a handbag. The entire sales data comes to us because of our integration with all the retailers. This data is used by the landlords to compute their share of revenue.

But the missing piece, which is a gold mine, was that we don't know who the consumers are. Retailers know their consumers to a very small extent—usually less than 40%, while the remaining 60% they don't know. That's the industry average.

Retailers would love to know who their consumers are. Because only when you know your consumers can you engage with them. Only when you engage with them can you build your business. So, Retail GPT is a result of that vision—not just capturing what is being sold but also knowing who is buying. We understand their behavior.

Knowing the customer is essential to grow the business. Today, the customer buys partly physically and partly online, so knowing their online spending as well as their physical store behavior is crucial. This requires a layer where the consumer gets engaged.

Retail GPT understands their entire shopping habits so that better privileges and offers can be provided to them. This is the foundation of how Retail GPT's thought process started.

But for it to become a reality, we needed to address the many apps, programs, and concepts running in the market globally. There was no single platform that succeeded in knowing who the consumers are at a public or ecosystem level, such as a mall.

Plus, in the age of AI, we wanted to use technology to elevate this game. This gave birth to the entire road map of Retail GPT, where a personal AI is created when a user signs up. The AI helps the user discover products, stores in their neighborhood, and malls nearby, even in a new city.

This is a conversational AI. Instead of searching for something, you ask. Your AI buddy remembers everything about you, so you don't have to repeat details like your home address. For example, if you want the same meal you had at a particular restaurant delivered to your son's home, you just have to say so.

So this is what Retail GPT is all about. The user experience is the significant change, creating a digital window for every brick-and-mortar store. This is not an independent marketplace; it brings existing brick-and-mortar stores into a digital marketplace.

Unlike other marketplaces, this platform allows existing brick-and-mortar stores to come together on the same platform. You'll buy your staple needs from the stores you always buy from, and dine at the restaurants you always dine at. What changes is the buying experience.

Additionally, the user owns their data. On other platforms, you have no control over who uses your data. Here, the user owns their data and allows Retail GPT to act as a custodian to bring privileges and rewards in exchange. So if you allow your data to be used, you get something back as cashback.

This platform is the first of its kind where you earn on every spend. We have brought three different pieces together: the AI conversational experience, the phygital engagement (both physical and digital engagement of the same brick-and-mortar store), and a reward system for every spend.

Rewards can be in the form of cryptos, sponsoring a tree for carbon offset, and other benefits. We have integrated AI, consumer data, and tokenization to bring significant benefits to consumers and businesses who are not getting discovered enough.

Neighborhood businesses, the original Quick Commerce people, couldn't catch up with the conveniences offered by new-age businesses. But with this platform, the existing brick-and-mortar stores can offer the same convenience as new search engines.

Q: Talking about the crypto-based reward system, how do you see blockchain technology transforming customer loyalty programs in the retail sector?

A: This is again a first of its kind where you're going to see cryptos being rewarded. For example, if you go to a mall and spend, let's say, 5,000 riyals over the weekend, by the time you step out of the mall, you will have, say, 25% of that money in your wallet in the form of cryptos. This is completely on blockchain. The blockchain we use is unique because it has quantum security, which allows very fast transactions. This means that even before you step out of the mall, your wallet will be credited with the value of your purchases—up to 25%.

Depending on your criteria of tier, badge, and what you are in the ecosystem, you will earn between 10 to 25% of your spending, which will go straight to your wallet. The best part is you can use this crypto without any binding; you don't have to spend it within that same mall. You can go to another mall or even another country and spend the money. So, you're actually earning wealth from your spending. We use blockchain for this purpose. Another significant aspect is that user data is encrypted on the blockchain, meaning nobody has access to user data. It is secured and completely on the blockchain. This is a first of its kind happening on a global scale.

Q: Talking about sustainability, it's the core principle of Retail GPT. How do you ensure that your AI solutions align with global sustainability goals?

A: The first thing we're doing is planting a tree for every set frequency of spend. For example, for every 1,000 riyals spent, Retail GPT will plant a tree on your behalf. This is important because every transaction creates a carbon footprint, even as small as getting a receipt, which carries 16 grams of carbon. Other factors include using a petrol vehicle and taking plastic bags, all contributing to your carbon footprint. For every 1,000 riyals spent, a tree is planted on the consumer's behalf, traceable through the platform. You can see the sapling being planted and watch your tree grow, with GPS coordinates shared. This is not just a claim; the tree is genuinely planted in your name.

For example, if you spent 10,000 riyals in the last three months, ten trees are guaranteed to be planted on your behalf. This is the first step we are taking, and within this launch year, we hope to plant up to one million trees, as we are launching in four countries. This initiative integrates climate change impact and ESG compliance with retail transactions, making citizens proud of their contribution to offsetting their carbon footprint, which is a crucial step in protecting the climate.

Additionally, there's another roadmap where, especially in the food category, for every 500 riyals spent on food, you will be entitled to sponsor a meal for a needy person. The mission here is happiness. Every feature and aspect of Retail GPT aims to deliver happiness and delight to the consumer. Consumers can shop as usual while also earning rewards and giving back to the community and the climate.

Q: Could you explain what inspired you to create the world's first generative AI platform for retail?

A: It is not by coincidence. We have been in the business of data intelligence for the last 15 years, working with shopping centers. We understood the pain areas and identified the needs for growth and what fuels it. We have witnessed the emergence of the internet and e-commerce, which started creating a dent in physical stores.

So, we always wondered how to ensure that brick-and-mortar stores remain and grow. We knew brick-and-mortar stores would stay because experiential buying cannot be replaced by online buying. The number one challenge for retailers was not knowing who their consumers are. By enabling Retail GPT, we help the ecosystem discover more of their consumers, engage with them better, and grow their business by understanding their preferences in fashion, food, and more, and by getting their feedback to offer more personalized products.

Hyper-personalization is the key benefit here. The offers I receive from a brand would differ from what someone else receives based on our behavior and spending within the brand or the mall. We saw this as a significant gap, and addressing it would change the growth trajectory of retail.

After 6-7 years of research and discussions with shopping centers and brands, Retail GPT evolved. It wasn't a coincidence; we had been working on it for the last 7 years. AI was just emerging two years ago, but even before that, we did a pilot launch for customer engagement called Rapo.

COVID-19 was a huge motivation because it highlighted the importance of knowing customers for digital engagement and business continuity. It was a wake-up call for the entire fraternity. While we were advocating for retailers to be digitally aware, COVID-19 educated the whole retail ecosystem.

With AI, we enhanced the consumer experience, delighting consumers, businesses, and shopping centers. Now, everyone in the ecosystem is happy.

Q: What advice would you give to emerging entrepreneurs who aspire to make a significant impact in the retail technology space?

A: The number one thing is that you cannot figure everything out on day one. Identify the problem first and venture into solving it. Don't focus on existing solutions; figure out what problem you can solve. As you solve the problem, you will evolve. You might not hit the final solution on day one, but you will solve the problem in stages. As you keep solving, you keep learning, and the summit of your solution will emerge, just as Retail GPT's journey did.

Q: My last question for you would be, what are your predictions for the future of retail, and how is Retail GPT poised to address upcoming challenges and opportunities?

A: AI is going to drive the future of the retail ecosystem. Consumers can expect innovative experiences. For example, instead of seeing a catalog to buy a garment, with Retail GPT, you could see yourself wearing the garment in a virtual catalog. If you want to go on a holiday for a wedding event or to a resort, Retail GPT can show you how you would look in various outfits in that setting.

Those who adopt technology, especially AI, will see a bright future. Cryptocurrencies are a reality, and the integration of cryptocurrencies with security and AI will drive businesses forward. While established brands might take time to embrace this, new local brands in each country are rapidly adopting tech and will be the future's movers and shakers.

And that concludes this 3rd episode of "Retail Power Talks"! Our conversation with Sadique Ahmed was fascinating with valuable insights into the innovative realm of retail data analytics and customer engagement.

Make sure to join us for our upcoming episodes, where we'll continue to feature engaging discussions with top experts in the industry. 

If you have any questions or topics you'd like us to cover, feel free to reach out—we're always excited to hear from you. Until next time, let's keep exploring the possibilities in retail!