Kiwi grocery startup Teddy is changing the game, setting itself up to compete with major industry players while spending only a fraction on staff thanks to its adoption of artificial intelligence.
The delivery-based retailer is using chatbot ChatGPT for online grocery recommendations and for running code and warehouse operations. Co-founder Ricki Taiaroa said that benefits would come by company having the ability to “establish a business with fewer resources than you needed in the past.”
“The name of the game is building a competitive business so that in a year’s time, we’re able to compete with the bigger guys and we’re an established brand. Technologies like [ChatGPT] enable us to grow sustainably,” said Taiaroa.
The ChatGPT service, which brings together production recommendations, has enabled Teddy to achieve greater customer satisfaction by improving customer service and understanding customer needs. Moreover, Teddy has saved money across the board by reducing the need for additional staff, according to AI strategy advisor Yiw. By using Copilot, which costs just 10 dollars a month, and ChatGPT, which bills hundreds of dollars a month, Teddy has been able to free up resources.
Further advantages come through the automation of product tagging. The new tech is able to recognize new products and properly categorize them, leading to more efficient warehouse operations.
Teddy aren’t the only company in New Zealand utilizing the new technology with Mind Lab and tech Futures Lab founder and chair Frances Valintine commenting on the potential of AI to change the future of software development. Commenting that, “the ability to automate highly repetitive tasks can easily be written using AI”
Valintine went on to say that a slow adoption of AI may leave a company at a competitive disadvantage, with senior software engineers being more likely to be replaced with automation.
Combining the benefit of AI with human expert knowledge can be helpful according to University of Auckland Senior Marketing Lecturer Marilyn Giroux. While recommending ChatGPT as a useful tool for businesses, she warned that caution should be taken when utilizing the technology for marketing. Giroux’s research indicates that individuals respond differently to humans and so there should be careful consideration when using AI for marketing related tasks.
Teddy is a Kiwi grocery startup based in New Zealand that was founded by Ricki Taiaroa. Using AI, the company provides delivery-based groceries and is looking to further enhance their operations by using ChatGPT. The cost-friendly technology allows Teddy to compete with larger, more established companies and is helping save hundreds of thousands of dollars in staff costs.
