On the latest episode of the Trending: Pet Food podcast, Lorenzo Trujillo, product team lead at eTailPet, joined host Lindsay Beaton, editor of Petfood Industry, to discuss how artificial intelligence is transforming independent pet retail operations. Trujillo shared insights on current AI applications and future possibilities that could level the playing field for small- to medium-sized retailers.
The conversation explored how AI is already integrated into retail systems for inventory management, purchase order generation and customer communication, with retailers proactively requesting AI tools rather than requiring education about the technology. Trujillo emphasized that AI's greatest potential lies in freeing business owners from time-consuming administrative tasks so they can focus on community engagement and customer relationships.
Here are the Top 10 Takeaways from Episode 101: How is AI being used in the pet retail space?
1. AI is already prevalent in pet retail operations.
AI is currently being used for reporting, ordering, generating discount codes based on competition and inventory management. "AI is pretty incredible because it can be used in almost every single facet of your platform, no matter what software we're talking about," Trujillo said. "I would say AI is here already, and it's here to stay."
2. Retailers can generate purchase orders in seconds instead of hours.
AI can analyze sales data and create complex purchase orders with specific parameters in moments. Trujillo explained that retailers can request orders "for the next six months based off of my sales, but exclude holiday items because I don't want to stock those until the holiday season comes up. The AI is able to take a look at your database and say, here's an order for the next six months if you want to stock your store, and here's my reasoning why."
3. Retailers are proactively seeking AI integration.
Unlike previous technology adoptions that required extensive education and market research, retailers are coming to software providers already knowledgeable about AI capabilities. "I've definitely had quite a few folks reach out, asking for integrations with certain AI platforms because they can do X, Y and Z," Trujillo said. "People are just coming to us already with the knowledge."
4. AI adoption surpasses even the cloud computing revolution.
The current AI adoption rate exceeds previous major technology shifts in retail. "Probably the last time we've seen something comparable to this is when folks were moving from on-premises systems or local systems to cloud systems. I think this is even bigger," Trujillo said. "I have never seen so many people, really, without any convincing, reach out to us to start working with AI."
5. Inventory management remains the top challenge for all retailers.
Regardless of business size, retailers spend most of their time managing inventory, including editing products, creating purchase orders, receiving orders and reviewing inventory reports. "Most of our retailers, just looking at our analytics, besides the register screen, they spend most of their time managing their inventory," Trujillo noted.
6. AI provides competitive intelligence for pricing and promotions.
AI tools can analyze competitor pricing and recommend discount strategies based on market conditions. Trujillo explained that AI "can look at your competitors' pricing and say, hey, you should run a discount based off of the general price of this product in this area. It doesn't sell well, but on a discount, it does."
7. AI frees retailers to focus on community relationships.
By handling time-consuming administrative tasks, AI enables retailers to spend more time on the floor with customers and engaging in community activities. "We want them to be out on the floor, interacting with their customers. We want the system to be so efficient that anytime you need to do something with it, it again, just takes a few seconds," Trujillo said.
8. Community engagement drives independent retailer success.
The strongest independent retailers are deeply embedded in their communities through rescue partnerships, farmers markets and local events. "Our strongest users who process quite a lot — when you look at each one of these retailers, and a lot of them are single-door stores that do incredibly well, you look at what makes them so unique and what makes their business work, and it's the fact that they're so intertwined with their customers," Trujillo observed.
9. AI helps level the playing field with big box retailers.
Small retailers lack the dedicated analytics teams that large chains employ, but AI can provide similar insights and recommendations. "Big box retailers have entire teams that are dedicated around giving that story and articulating the actionable items for the business. Our small to medium-sized retailers don't have that a lot of the time," Trujillo said. "Tools like this are going to just take them to that next level and allow them to compete."
10. AI will become essential within 10 years.
Trujillo predicts AI will be a table stakes feature in retail software within the next decade. "Within the next 10 to 15 years, I would say AI technology within many software platforms is going to be a table stake or an expected item," he said. He added that retailers who don't adopt AI early risk being left behind as the technology becomes essential for remaining competitive.
Learn more and listen to the full Trending: Pet Food Podcast here.
