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1、Australian Consumer Sentiment Snapshot#7 Value Driven Australian Consumer:Finding Opportunities Amid InflationBy Jarryd Porter and Indira ZaveriBoston Consulting Group partners with leaders in business and society to tackle their most important challenges and capture their greatest opportunities.BCG
2、 was the pioneer in business strategy when it was founded in 1963.Today,we work closely with clients to embrace a transformational approach aimed at benefiting all stakeholdersempowering organizations to grow,build sustainable competitive advantage,and drive positive societal impact.Our diverse,glob
3、al teams bring deep industry and functional expertise and a range of perspectives that question the status quo and spark change.BCG delivers solutions through leading-edge management consulting,technology and design,and corporate and digital ventures.We work in a uniquely collaborative model across
4、the firm and throughout all levels of the client organization,fueled by the goal of helping our clients thrive and enabling them to make the world a better place.BOSTON CONSULTING GROUP 1The Australian Consumer Sentiment Snapshot series shares insights from a BCG consumer survey undertaken with our
5、coding and sampling partner,Dynata.The survey aims to uncover how consumer perceptions,attitudes and spending behaviours are impacted by the inflationary environment.This snapshot presents insights from Round 7 of the survey,gathered in September 2023.We have drawn comparisons with research complete
6、d in previous rounds and other countries.Continued inflationary conditions are keeping consumers in Australia on edge about their economic status,lifestyle,spending and saving.But our most recent survey also found some rays of sunlight that could bode well for companies who adjust their strategy to
7、evolving consumer needs.This snapshot highlights 6 key themes focused on consumers:1.While fewer consumers expect recessionary conditions in Australia(7ppt drop from 68%in our last survey),Australians are some of the most concerned about inflation when compared to other developed markets,with only N
8、ew Zealand more concerned than us.2.Despite the concern over rising prices,40%of Australian consumers are optimistic;56%of these optimistic consumers are from the silver generation(aged 52 years and above)while younger generations are being hit harder by inflation induced mortgage or rent pressures3
9、.50%of Australian consumers are prioritising value for money over experience and increasingly going after deals,promotions(9 ppt up from previous round).4.While 40%+of consumers expect they will continue to spend more on essentials in the next 6 months.Travel is set for sustained growth as+16 ppt di
10、fference observed in net%of consumers travelling for business today compared to November 2022.Leisure travel is also set for steady growth as 8 ppt increase seen in number of leisure travellers today vs.previous round.5.Consumers are embarking on more complex purchase journeys,averaging almost 8 tou
11、chpoints to inform their purchasing decisions.Over 40%of consumers stated using greater number of sources of information than they used to before COVID-19.6.75%of Australian consumers are aware of Gen-AI,however only 14%use GenAI regularly today,mainly due to data privacy concerns.Adoption rates amo
12、ng millennials are 4 times higher than the silver generation.Adoption is likely to accelerate quickly from 14%today to 22%in the near future.2VALUE-DRIVENAUSTRALIANCONSUMER:FINDINGOPPORTUNITIESAMIDINFLATIONAustralian consumers are some of the most concerned about inflation and its impact on their pe
13、rsonal finances.Since our last survey,concerns over economic recession have subsided in Australia;61%of consumers in this round expect recession compared to 68%of consumers in November 2022.However,inflation and its impact on the price of goods and services has become a major concern for the global
14、economy.The prolonged nature of the crisis is putting 64%of consumers under pressure when it comes to personal finances.We found that consumers from the most developed markets have the highest economic concerns.In Australia,86%of consumers are concerned about recent price increases,compared to globa
15、l average of 81%.Of these developed markets,the most concerned is New Zealand(91%of consumers are concerned)and China is the least concerned(67%of consumers).See Exhibit 1.Exhibit 1 I Australia among most concerned markets over rising prices and personal finances;only aer New Zealand86%91%86%85%82%8
16、2%81%025507500Consumers worried about rising prices“I am concerned about the price increase of goods and services”(%)And personal finances“I am worried about my personal finances”(%)Note:Question text:“How much do you agree with each of the following statements?”;%of respondents who somew
17、hat or strongly agree with the statementSources:BCG Consumer Sentiment Survey,Sept 2023,(N=2,064,Australia,unweighted,representative within 3%of census or market demographics);Global BCG Recessionary behavior Consumer Sentiment Survey67%64%65%56%66%60%71%45%57%BOSTON CONSULTING GROUP 3Half of our Au
18、stralian respondents claim their household disposable income has reduced due to inflation compared to what it was 6 months ago.For some,their disposable income has reduced as much as 22%.See Exhibit 2.Survey data also shows that,as a result,there is a 15ppt net increase in the number of consumers sa
19、ying they will be spending less and saving less.Exhibit 2 I 1 in 2 consumers state average decline of 22%in disposable income;attributed to inflationDisposable household incomevs.6 months ago(%of consumers)6Average decline in disposable incomeTop 5 drivers of decreased disposable incomeLess than 5%5
20、%to 10%11%to 20%21%to 30%31%to 40%41%to 50%50%of consumers%of consumers who state reason is driver of decreased disposable income2 Income reduced by average 22%Question text:Which of these statements best describes the level of your disposable household income today as compared to six months?Questio
21、n text:And what are the top 3 reasons of lesser disposable income today compared to 6 months before?;%with response as top rankSources:BCG Consumer Sentiment Survey,Sept 2023,(N=2,064,Australia,unweighted,representative within 3%of census or market demographics)Financial crisis due to inflation or r
22、ecessionLost employmentJob insecurity(cut in pay,working hours etc.)Global COVID-19 pandemicMajor medical expense29251885943%13%10%7%7%decrease51%12%37%5MoreSame asLess4VALUE-DRIVENAUSTRALIANCONSUMER:FINDINGOPPORTUNITIESAMIDINFLATIONDespite the concern over rising prices,40%of Australian consumers a
23、re optimistic about the economic outlook.Younger generations are feeling the impact of inflation while the silver generation remains resilient.A breakdown of our survey results by demographic reveals that younger generations(Millennials and Gen X)are more impacted financially and hence less optimist
24、ic about their personal financial situation.Meanwhile,consumers aged 52 years and above the silver generation are more financially stable and confident in their situation.See Exhibit 3.Exhibit 3 I Despite the decline in consumer sentiment,40%of Australians are optimistic;silver generation more optim
25、istic than millennials/Gen-XNote:Question text:“How much do you agree with each of the following statements?”;net%of respondents who somewhat or strongly agree with the statementMillennials:Age 18-34 years,Gen-X:35 to 51 years,Silver 52&above.Sources:BCG Consumer Sentiment Survey,Sept 2023,(N=2,064,
26、Australia,unweighted,representative within 3%of census or market demographics)Younger generation51-year-oldMillennial/Gen-X Pessimists I am worried about personal finances,performance of investments in light of these price increasesMillennial/Gen-X NeutralistsMillennial/Gen-X Optimist I am concerned
27、 about my finances and investments,but I am confident that our government is creating a right environment for recovery I have returned to my normal spending behaviors and the worst is over Silver PessimistsI am concerned and expect to face challenges in my day to daySilver NeutralistsSilver Optimist
28、I am hesitant to invest at the moment.my countrys revival is on the right path I am confident that I will be able to buy what I want76%of pessimists are millennials and Gen-X57%of optimists are Silver generation25%8%22%5%19%21%Optimistic(40%)Neutral(33%)Pessimistic(27%)%of Australian consumers in ea
29、ch segmentBOSTON CONSULTING GROUP 5Lets take closer look at 2 extremes of these consumer segments.See Exhibit 4.Exhibit 4 I Optimism levels determined by impact on income,finances and demographicsNote:Question text:“How much do you agree with each of the following statements?”;net%of respondents who
30、 somewhat or strongly agree with the statement In the next 6 months.How do you expect your spending to change compared to your spending today?;net%of respondents who ranked need in their top 5 Millennials:Age 18-34 years,Gen-X:35 to 51 years,Silver 52&aboveSources:BCG Consumer Sentiment Survey,Sept
31、2023,(N=2,064,Australia,unweighted,representative within 3%of census or market demographics)Outlook to macro and micro economyFinancially worried98%worried about personal finances97%concerned about recent price increaseWill spend only on essentialsPressure of rent/mortgage leaves less disposable inc
32、omeOnly for 12 of 79 categories remain unimpacted from inflation;includes utility services,mortgage,rent,grocery,fresh foodMore“budget conscious”Affordability,quick and effective,value for moneyFinancially confident66%say their daily lifestyle returned to pre-COVID-19 levels65%say they are confident
33、 they will be able to buy what they needImpacted finances due to uncertainty76%females,72%consumers earn less disposable income today than past 6 months,49%expect their income to decline in next 6 months85%saved less than usual.Financially confident and stable86%males,72%earn same disposable income
34、or more than past 6 months,74%confident about keeping same income levels.Will SplurgeSaving money to travel(47%),spend on home maintenance&repair(20%),56 of 79 categories remain unimpacted;consumers will maintain,or increase spend levels;includes non-essentialsMore“value and assurance seeker”Value f
35、or money,quality,safety,trustworthyShis in spending behaviorsDemographics and socioeconomicFunctional needsYounger PessimistsSilver Optimist25%19%Silver optimists who make up 1 in 5 consumers in Australia are the most resilient segment during uncertainty.Over 65%of these consumers state that their l
36、ife is back to pre-COVID levels;they can buy what they need and are confident about their personal finances.These consumers are predominantly male,have a stable income,dont have dependents,and the next thing they want to do is travel overseas.We tested impact on spending plans for 80 categories and
37、found that this segment will continue to spend as usual,or even more,on 56 of those 80 categories.Of all consumer segments,they will spend significantly more than other segments on medical procedures,medical devices,home decorations and renovations,clothing,private health care,alcohol,pet food and s
38、upplies.Younger pessimists who make up 1 in 4 consumers in Australia,are the first ones to feel the brunt of rising prices.They have altered their shopping behaviours to focus on day-to-day essentials and survive the downturn.Of this segment,44%are millennials(aged 1834)and 56%are generation X(aged
39、3551)and most are female.95%+of this segment is worried about personal finances and the state of overall economy.These consumers have plenty to be pessimistic about;76%have less disposable income than they did in the past 6 months,diverting much of their income to daily essentials,particularly on in
40、creased mortgage and house rent costs(which ranked#2 and#3 in categories of increased spend).Utility services,packaged food,sim connection and ready-to-cook food were also in their top sources of increased spend.Our impact testing indicated this segments spending intentions remain as usual or positi
41、ve only for 12 of 79 categories,especially mortgage and rents.In summary,we see surprising resilience across generations for sustained spending intentions on essentials.However,discretionary spending will be driven by silver optimists until younger generations can emerge out of mortgage/rent pressur
42、e in this inflationary environment.6VALUE-DRIVENAUSTRALIANCONSUMER:FINDINGOPPORTUNITIESAMIDINFLATIONConsumers are increasingly prioritising value for money over any other needs.Consumers believe it will take close to 4 years for inflation to stop rising in Australia.With the increased price of essen
43、tials and discretionary categories,48%of consumers stated they are buying less.Of those that have spent more in the past 6 months,26%state inflated prices have forced them to spend more.As a result,when purchasing goods or services,consumers are prioritising functional needs over experience and seek
44、ing value for money across categories.See Exhibit 5.Value for money means different things across different categories,but no matter the spending category,it remains the priority for consumers.In food categories,value is important in terms of affordability whereas for home categories,high quality is
45、 more important.Consumers showed unprecedented resilience during COVID-19 by adapting their spending to areas of most need.Now,they are under pressure to change their spending again.Approximately 60%of consumers are checking prices on the internet more than ever before(10ppt up from November 2022).W
46、hile 54%are choosing affordable or accessible brands to compensate for increased prices,and 56%are hunting for deals and discounts(up 8ppt from November 2022).Exhibit 5 I Consumers aim for value as they research until they find best deal and prioritise needs over experience amidst uncertainityQuesti
47、on text 1:What best describes the type of person you are in terms of purchasing following categories.Please select top statement that is most applicable to you for each category.Sources:BCG Consumer Sentiment Survey,Sept 2023,(N=2,064,Australia,unweighted,representative within 3%of census or market
48、demographics)By researching and comparing until I find the best dealBy prioritising what we really need as a family rather than what we wantWhat I want,immediately when I want itSomething that emotionally make me feel goodBuying as many products from a single store,to save time,effort or hassleWhat
49、inspires me,oen trends,quality products and brands for status upgradePurchased aer due diligence by connecting with clever minds45282724241715Top behaviours consumers exhibit while shopping(%of consumers)BOSTON CONSULTING GROUP 7Exhibit 6 I Consumers are spending more on essentials but are optimisti
50、c about prices and intend to spend more on discretionary categories in futureNote:Question text:In the next 6 months,how do you expect your spending to change compared to your spending today?Note:Net%of respondents calculated by%Expected to spend more on category%Expected to spend less on categorySo
51、urces:BCG Consumer Sentiment Survey,Sept 2023,(N=1,825 NZ,weighted to match market mix by age and gender)Mortgage or rent/housingUtilitiesGroceries&staplesRenting a housePrivate health insuranceBuying houseFresh fruits/vegetablesBaby/childrens foodPet food and suppliesLawn,garden and outdoor furnitu
52、reAdventure activitiesSpas,theme parks,concertsLuxury brands and productsMovies at cinema hallOrdering in/takeaway foodSavingsHandbags71%60%48%42%41%38%29%25%24%21%21%21%25%25%26%30%38%+31%-5%-8%-6%-9%-4%-19%-12%-20%-19%+35%+35%+43%+35%+37%+42%+68%Consumers expect prices of essentials to stabilizeCo
53、nsumers expect to bounce back from inflation and spend more on discretionary categoriesNet%of consumers spending today compared to past 6 months(%of consumers spending more-%of consumers spending less)Expected delta in net%of consumers expected to spend moreIn next 6 months.Consumers continue to spe
54、nd more on essentials.They expect to spend more on discretionary categories as they intend to buy more and pay more due to price hike and certain segments will drive this demand.As a result of recent price hikes,consumers claim they are spending more on utilities(71%),mortgage(60%),groceries(48%),re
55、nt(42%)and private health insurance(41%)that they did in the past 6 months.While categories like fresh food,baby food and pet food show continued resilience,outdoor furniture and out-of-home entertainment take a backseat as consumers focus on their needs.Although the rising price of essentials is th
56、e primary driver of increased spending,consumers are optimistic about spending on select discretionary spend categories in the near future.They expect that the impact of inflation will recede to stabilise prices on essentials,allowing them to spend more on non-essentials.See Exhibit 6.8VALUE-DRIVENA
57、USTRALIANCONSUMER:FINDINGOPPORTUNITIESAMIDINFLATIONIf we break down this view by various demographics,we see windows of opportunity to grow these discretionary categories:1.More consumers intend to increase spend on future on discretionary spend categories such as luxury products and accessories and
58、 bags.Between 7%and 10%of consumers are expected to stop cutting down on spending on these categories.Out of home entertainment including cinema,theme parks and gaming zones will likely follow a similar positive trajectory in next 6 months.2.Of those who intend to spend more in future,con-sumers ear
59、ning$115,000 per annum will continue to show demand for indulgent categories including leisure travel(34%),savings(28%),plants(21%),stream-ing subscriptions(23%),ready-to-cook food(21%),dining in(23%),alcohol(21%)and bed and bath(21%).3.Travel is set for sustained growth as+16 ppt dif-ference observ
60、ed in net%of consumers travelling for business today(+13%)compared to November 2022(-3%).Leisure travel is also set for steady growth as 8 ppt increase seen in number of leisure travellers today(-3%)compared to previous round(-5%).Among consumer segments,silver neutralists(5%of Australian popula-tio
61、n)show strongest resilience in demand for travel followed by younger neutralists(22%of population)4.Millennials and Gen-X optimists intend to spend more than other segments on business and lei-sure travel.These categories are on a sustained growth trajectory as the number of consumers who intend to
62、spend more on travel will jump from-3 to 3%for busi-ness and-10 to-5%for leisure travel from November 2022.Furthermore,10ppt increase is expected in net%of consumers who will spend more on business trav-el.We also observed strong growth trajectory for paid streaming services among this segment.5.Sil
63、ver optimists intend to spend more across essentials and discretionary.In addition to utilities and grocery,this segment will spend more on pet care,clothing,alcohol,and private health care etc.BOSTON CONSULTING GROUP 9Exhibit 7 I Offline is the preferred mode of purchase for 1 in 2 Australians but
64、1 in 3 prefer online.This varies greatly by category.Question text 1:Think about pre-COVID-19 times,what was your most preferred mode for buying a product or signing up for the service?Question text 2:Think ahead and tell us what will be your most preferred mode for buying a product or singing up fo
65、r the service?Sources:BCG Consumer Sentiment Survey,Sept 2023,(N=2,064,Australia,unweighted,representative within 3%of census or market demographics)OverallMajority OfflineMajority OnlineSignificant Variation compared to pre-COVID-19 levels 83%78%9%PastFuture84%78%9%6%Past11%11%Future84%83%7%9%Past7
66、%10%Future9%79%80%13%Past9%10%Future15%14%10%12%75%74%PastFuture16%15%16%12%69%73%PastFuture21%27%45%33%34%40%PastFuture20%31%55%44%24%25%PastFuture20%26%50%38%30%36%PastFutureOnlineOfflineBoth8%12%11%Frozen Food Frozen MeatFresh Food/Vegetables Subscription to paid streaming platforms Utilities(bil
67、l payment)Private Health Insurance Electronic/Non-electronic Games AccessoriesHealth&Fitness activities(booking,virtual classes)55%52%28%29%PastFuture17%19%Consumers are embarking on increasingly complex purchasing journeys post-COVIDMore than 45%of consumers are researching deals to find value and
68、over 50%of consumers are looking for deals online before purchasing.As a result of behaviours like this,improved online experiences and a post-COVID desire to visit brick-and-mortar stores,the average purchasing journey almost 8 touchpoints between business and consumer.We asked consumers to choose
69、their preferred mode of purchasing by category.For 1 in 2 consumers,in-store purchases dominate but 1 in 3 consumers prefer online.These preferences vary greatly by categories.See Exhibit 7 to see how todays preferences compare to pre-COVID.10VALUE-DRIVENAUSTRALIANCONSUMER:FINDINGOPPORTUNITIESAMIDIN
70、FLATIONOur data also shows that consumer journeys have become more complex and multi-touchpoint after COVID-19(especially for furnishing,utility,accessories,DIY,Work from home furniture where more than 40%of consumers started to rely on more sources that they used before COVID-19).It will be importa
71、nt for retailers to monitor the consumers coming to their stores or buying from them online to tailor their offering to categories they are after.Across the purchasing journey,consumers leverage an average of 3.7 unique channels and 7.7 non-unique channels to inform their purchasing decisions.Consum
72、ers purchasing categories including alcohol,pet food and medications follow fewer touchpoints whereas those purchasing accessories,sim cards,furniture and broadband follow complex pathways.For accessories,consumers use YouTube and Facebook or Instagram to discover,consider and decide on a product.Wh
73、ereas for alcohol and pet food,it is all about a business building great engagement with a single touchpoint.Having said that,wanting everything at one place is among top 5 needs of consumers when selecting a business to purchase from.Over 60%of consumers are looking for simpler digital experiences
74、for complex journeys of broadband connection,utility services and furniture.For these categories,interactive digital platforms including Gen-AI could be potential disruptors.BOSTON CONSULTING GROUP 11Gen-AI could provide consumers with the simplified purchasing journey they seek,but ensuring data se
75、curity will be critical to gaining consumer trust We did a pulse check on Gen-AI.Despite 75%of consumers being aware of Gen-AI tools,only 14%adopt it for personal or professional usage and the adoption rate is even lower among the silver generation.However,once consumers try it,Gen-AI soon becomes a
76、 go-to tool for 68%of consumers.See Exhibit 8.Exhibit 8 I The conversion rate between being aware of,and trying,Gen-AI is low.The trial and adoption rate drops with age Question text 1:Have you ever heard about generative AI(For e.g.,Midjourneys,Chat GPT).Question text 2:Have you ever used Generativ
77、e AI(GenAI)?Question text 3:How oen do you use GenAI?Sources:BCG Consumer Sentiment Survey,Sept 2023,(N=2,064,)Australia,unweighted,representative within 3%of census or market demographics)14%15%73%75%75%75%22%6%13%31%25%21%Aware Age Group TrialistsHave used it AdoptersUse occasionally or moreHeard
78、of it 28%68%42%81%29%67%18%44%Total Sample18-34 years35-51 years52&Above yearsConversion rate12VALUE-DRIVENAUSTRALIANCONSUMER:FINDINGOPPORTUNITIESAMIDINFLATIONWhen asked about benefits of Gen AI,consumers believe Gen-AI saves time,solves problems and enhances creativity but they dont believe it will
79、 provide them with personalised or tailored products and services.The adoption of Gen-AI is likely to increase from 14%to 22%in near future.We observed that Australians remain hesitant to adoption of Gen-AI as data privacy concerns are prevalent for 60%of consumers.At the same time,they believe the
80、more data they share with an entity,the greater value they should receive from that entity.See Exhibit 9.Exhibit 9 I Consumers recognise the effectiveness of sharing data,especially with government,financial institutions,health and utility providers Question text 1:For the following list of institut
81、ions,how important do you think it is to share your data and personal information with them?Question text 2:In your personal experience,how valuable it has been to share data and personal information with these providers?:Department stores for fashion,accessories etc.(E.g.K-Mart,Target,Bunnings)Sour
82、ces:BCG Consumer Sentiment Survey,Sept 2023,(N=2,064,)Australia,unweighted,representative within 3%of census or market demographics)HighPerceived Value/EffectivenessLowHighBanksInsurance companiesTravel agenciesAirlinesVideo streaming apps such as NetflixGovernmentUtility providersTelecomFood&Grocer
83、y Chain/SupermarketDepartment StoresFurniture stores(E.g.Ikea)HospitalsPerceived ImportanceCautious InvolvementNot perceived as important to share information with nor as providers of substantial valueStrategic CollaborationsHighly important to share information with,and they offer substantial value
84、 in returnChemist and health&Wellness stores(Chemist warehouse,Priceline)BOSTON CONSULTING GROUP 13Implications for businessesEconomic downturns affect categories and consumer segments in non-linear ways but some categories and segments show resilience.In these downturns,growth is an even more nuanc
85、ed story,but it is highly rewarded.BCG research in the USA shows that 14%of companies improve growth and margins in downturns,while 44%decline in both and the performance gap between them is substantial(CAG gap of+14ppt 8.8%Vs.-4.7%)1.Based on our survey insights,we have identified 4 implications fo
86、r companies to increase their chances of growth in this gloomy economic climate.1.Maintain hope and a growth orientation.Rapid shifts in consumer needs have sped-up product and service innovation and altered the competitive landscape,changing the customer value proposition and creating new white spa
87、ces.To outperform in recovery,companies require clarity on the shape of demand rebounds and changing consumer needs.Companies must also innovate and invest in growth,even in the face of a deep post-crisis inflation.The evidence is clear:the best time to grow differentially,is when aggregate growth i
88、s low.Companies that flourish in a downturn do reduce costs to maintain viability,but they also innovate around new opportunities and reinvest in growth pillars to capture opportunity in adversity and shape the post-crisis future.2.Deliver value whatever it means.While consumers are making budget-co
89、nscious decisions,think about consumers criteria for value and how to best deliver it.While consumers are already spending more,the top-down approach of passing costs onto consumers will fail if it increases by 20%of and item average price(varies by category).Learn more in BCGs Build resilient prici
90、ng in uncertain world publication.3.Identify resilient segments to position products and services to.Even though inflation continues to exact economic pain and deep anxiety,certain segments show endurance:Target the needs of silver optimists.Focus on delivering products and services to higher income
91、,silver optimists who remain resilient to inflation.They need to feel valued with quality,reliable solutions and offers.Support younger pessimists in tough times.As younger pessimists reset their spending plans to curb inflation,companies must identify drivers that will build sustained demand among
92、the segment.This segment needs to feel supported as inflationary environment negatively impacts them.Making products and services affordable and accessible to younger generation will be critical.And when positioning products to these segments,or any segment for that matter,target them with the right
93、 channel and stay with them throughout their complex purchasing journeys.Read BCGs article on building customer experience for the future and learn more about capturing shifting consumer demand with BCGs Demand-centric Growth Compass for retailers.Embrace Gen-AI to consolidate complex purchasing jou
94、rneys as consumers look for tailored one-stop solutions but secure consumers data.Our survey found that consumers are seeking a one-stop shop for complex purchases.This kind of one-stop shop will likely require conversational selling a platform with a Gen-AI chat bot for consumers to interact with t
95、o explain the product or service.Just as Amazon emerged as an eCommerce giant a decade ago,we will likely see conversational giants emerge.Every consumer-facing business needs to get its strategy in place to create successful conversational platform.The potential seems boundless,and executives acros
96、s industries are under pressure to incorporate GenAI into operations and capture benefits.By some estimates,GenAI could amplify global GDP by 7%and double productivity growth over the next decade.But will these rosy estimates actually become reality?Its a question worth asking because there are stil
97、l a lot of divisions and skepticism in the executive ranksnot just between companiesbut within companies.Please read more about it in BCGs report https:/ over data security are a barrier for many companies in adopting Gen-AI.However,our experience suggests that some of these concerns are based on pe
98、rceptions of data security that are no longer true or are easily avoided.For example,the change to Zoom terms and conditions to allow Zoom to use its customers conversations to train AI models was widely reported,but their swift withdrawal from that policy was not as well reported.1 Source:S&P Compu
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104、aborest hillamendia doluptae conseruptate inim volesequid molum quam,conseque consedipit hillabo.Imaio evelenditium haribus,con reictur autemost,vendam am ellania estrundem corepuda derrore mporrumquat.Add Co-Sponsor logo hereFor information or permission to reprint,please contact BCG at .To find the latest BCG content and register to receive e-alerts on this topic or others,please visit .Follow Boston Consulting Group on Facebook and Twitter.Boston Consulting Group 2023.All rights reserved.X/23Add Subbrand logo