5 must reads for the weekend

We keep our ear to the ground for the interesting stats, insights and discussion points you need to feel in the know.  

1. The GenAI gap

It’s been two years since the release of ChatGPT and companies across various sectors have adopted GenAI into their business transformation. Yet, there is a critical gap. While there's a lot of interest and activity around GenAI for efficiency and productivity gains, many businesses haven't fully considered how GenAI can fundamentally reshape their existing models at a much greater speed and scale. To bridge this gap, companies need to evaluate the combined impact of all potential GenAI use cases and technologies, and rethink their approaches to business model innovation. Success hinges on rethinking not only operating and business models but also the process of business model innovation and the hidden assumptions that underpin it. 

How GenAI and complexity challenge assumptions and business models 

2. Full throttle

Customer expectations in the automotive industry are changing. Traditionally, automotive manufacturers have excelled at selling the dream – a beautifully designed and engineered new car, coupled with an outstanding brand experience. However, after the sale, customer engagement often drops off significantly. Today's consumers, especially Millennials and Gen Z, expect more from the moment they start exploring options to the day they drive their new car off the lot and beyond. So, what opportunities are automotive Original Equipment Manufacturers (OEMs) missing out on? The pattern of diminishing after-sales service is a critical oversight. It's an opportunity for OEMs to extend their experience beyond the showroom, fostering long-term loyalty and satisfaction, and opening additional revenue streams. Here’s what they can do...

How car manufacturers can use aftersales to build a long-lasting relationship with their customers 

3. Playing by the rules

The current debate around AI regulation frames it as a tradeoff between innovation and safety. The argument suggests that the more we regulate AI, the less creativity and investments we’ll have. However, this view overlooks the benefits of sensible regulation. Quality regulations can support economic growth by reducing market failures, lowering transaction costs, fostering innovation, and creating a stable business environment. Case studies show that strong regulations have positive impacts. For example, banking regulations have created a healthier financial sector post-2008 crisis, automotive safety regulations have saved millions of lives, and renewable energy regulations have spurred innovation and investment... 

What the market gets wrong about AI regulations

4. Wellbeing wins

The lines between Consumer Products, Health, Life Sciences, and Retail are blurring, unlocking exciting opportunities. These sectors share a focus on putting people first with solutions that improve well-being. Now, let’s talk numbers: the wellbeing sector alone is already worth a whopping $5.6 trillion and is expected to hit $8.5 trillion by 2027. What’s driving this? Well, it’s a mix of cutting-edge tech and shifting consumer expectations. Did you know that 41% of consumers prioritize healthiness in products, and 37% are willing to pay more for health-focused items? Plus, 45% use apps or smart devices to manage their health. By combining EY expertise across these areas, we can drive innovation and growth, creating a healthier, happier world.

The opportunities of convergence in Consumer & Health put humans at the centre

5. Retail resilience

Retail leaders are bracing for a tough year, with optimism 20% lower than other industries. Only half are confident in global and local economies, compared to nearly 70% of CEOs elsewhere. This caution stems from disruptions like COVID-19, geopolitical tensions, and supply chain issues. Yet, retail has shown resilience, with market capitalization tripling in the past decade. Looking ahead, leaders are focusing on maximizing assets, boosting private labels, and using AI to drive growth. While the near future may feel uncertain, retail’s adaptability and innovation hint at a brighter horizon... 

Are retail CEOs pessimistic? Cautiously optimistic? Or just realistic?

If you do one thing: 

Take a break during the day and go for a walk outside. 

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