Andreas Demetriou Pompatzis: AI plays a vital role across our e-commerce operations

Andreas Demetriou Pompatzis, Chief Information Officer at Alphamega Hypermarkets, says artificial intelligence (AI) has long been central to the company's growth, and while it does play a vital role across the supermarket chain's e-commerce operations, integrating it has presented several challenges; some of which are ongoing.

What are the specific AI tools that you have adopted? How well did they integrate with your existing infrastructure? Did they require specific customisation to work effectively?

AI has long been central to technological innovation and, at Alphamega Hypermarkets, we’ve been leveraging AI-driven solutions across various areas to boost efficiency, enhance customer experiences and strengthen security. By integrating advanced technologies into our operations, we continue to drive personalisation, innovation and performance.

Across our e-commerce operations, AI plays a vital role. In our fulfilment centres, AI-powered multipicking software uses machine learning to optimise picking paths, significantly improving order processing. For deliveries, AI-driven optimisation tools leverage natural language processing, machine learning and deep learning to identify the most efficient routes. On our website, personalised product recommendations powered by AI enhance engagement by adapting to each customer’s preferences.

In marketing, we apply machine learning-based personalisation to deliver relevant product suggestions across all customer channels, ensuring more engaging interactions. We also use AI tools for image and content creation, improving the quality and impact of our marketing efforts. Our software development teams use GitHub Copilot, an AI-powered coding assistant that boosts productivity by suggesting relevant code snippets in real time.

In cybersecurity, we’ve deployed AI-powered threat detection tools that use machine learning and behavioural analysis to proactively identify and respond to threats, reinforcing our security framework. We’re also pursuing a number of AI initiatives and proofs of concept. These include aligning with the EU AI Act, evaluating Large Language Model-powered software to enhance productivity, and developing an AI chatbot to improve customer service on our e-commerce platform. We’re also implementing AI algorithms for demand planning and promotion optimisation, helping us make more accurate forecasts and better data-driven decisions. All these AI tools have been thoughtfully integrated into our systems, often with custom adjustments to align with our specific needs. As AI continues to evolve, we remain committed to leveraging its potential in a responsible and strategic way.

Have these AI deployments led to revenue growth, cost savings or improved customer retention? Can you quantify these improvements? And how long will it take before you see a measurable return on your investment?

Our AI deployments have delivered tangible benefits across multiple areas, driving efficiency, increasing revenue and enhancing customer satisfaction. Generative AI and other AI-powered tools used in marketing and HR have significantly boosted employee productivity. By automating content creation, whether for campaigns, job descriptions or internal documentation, our teams can work faster and with greater accuracy, allowing them to focus on more strategic initiatives. The same applies to our developers, who leverage AI-powered coding assistants to improve software development efficiency. In our e-commerce business, AI-driven fulfilment has transformed order picking, significantly increasing the number of customer orders we can process, directly impacting revenue growth. Our AI-powered delivery algorithms have optimised routing, reducing delivery times and improving accuracy. This not only enhances customer satisfaction but also lowers fuel consumption, contributing to cost savings and sustainability. These improvements are measured through key performance indicators (KPIs) such as orders picked per hour/day and average delivery time, all of which have shown measurable improvement. Additionally, our AI-driven personalised product recommendations across all customer touchpoints have directly contributed to revenue growth. While ROI varies by use case, most of our AI initiatives began to deliver measurable results within a few months of deployment.

What have been the biggest bottlenecks in integrating AI solutions? How did you overcome these challenges?

Integrating AI solutions has presented several challenges, some of which are ongoing. On the technical side, factors such as data quality and availability, security concerns and system integration require careful consideration. To address these, we conduct technical readiness assessments before implementation, ensuring that our infrastructure is prepared for AI adoption. Another key challenge has been upskilling employees. While many of our colleagues have been eager to embrace AI – particularly generative AI to simplify their workflows – they also needed proper training. This was and continues to be essential not only to maximise AI’s value but also to ensure its ethical use, mitigate risks and protect our intellectual property.

As AI continues to transform the workplace, how has Alphamega adapted? How have employees responded and what steps have you taken to support this transition?

Alphamega Hypermarkets’ digital transformation journey began long before AI became widely commercialised. We started by digitising and re-engineering our processes, then moved toward automation where possible, using technologies such as Robotic Process Automation (RPA). AI has accelerated this transformation, further streamlining operations and solving challenges that previously didn’t exist. Rather than replacing jobs, AI is reshaping roles within our company. Many tasks that once required manual input have been automated, allowing employees to transition into higher-value roles focused on oversight and decision-making. Instead of spending time on repetitive tasks, the aim for the majority of our teams is to ensure quality and accuracy. Ultimately, our goal is to ensure that AI serves as a collaborative tool, empowering employees rather than displacing them.

In your industry, what types of decisions can realistically be entrusted to an algorithm? And do you think that AI will ever be capable of handling the novelty and ambiguity of executive-level decision-making?

As mentioned earlier, we already trust AI to optimise operational decisions, such as determining the most efficient picking routes in our fulfilment centres, optimising delivery routes for customers and providing personalised promotions. These AI-driven decisions have enhanced efficiency, improved customer satisfaction and streamlined logistics. Beyond these, commercial AI-powered solutions are already assisting with demand forecasting, price optimisation and promotion optimisation – three critical pillars of grocery retail. However, while AI can process and analyse data at an unprecedented scale, I firmly believe that it serves as an enabler rather than a replacement for executive decision-making. AI excels at identifying patterns, providing recommendations and automating routine tasks but strategic decisions still require human oversight, experience and intuition – especially in a dynamic and complex industry like grocery retail. Looking ahead, AI will continue to evolve and take on an even greater analytical role but handling novelty, ambiguity and long-term strategic thinking will remain a human responsibility. The future of AI in executive decision-making isn’t about replacing leaders – it’s about empowering them with deeper insights, better predictions and enhanced decision-making capabilities.

Which AI trend or technology are you watching closely and which do you think are more marketing fluff than substance?

One of the AI trends we are closely monitoring is the practical application of generative AI in business operations. While tools like ChatGPT, Copilot and Gemini have popularised AI for content generation, their real value lies in enhancing productivity, automating repetitive tasks and enabling more efficient decision-making. Additionally, we are particularly interested in AI-powered automation for demand forecasting and promotion optimisation, as these have the potential to transform grocery retail. Ultimately, we focus on AI technologies that deliver measurable value – those that can boost our business strategy – rather than those that generate more hype than real-world impact.

What is the one AI breakthrough that you believe will be a game-changer for your industry?

Agentic AI and Predictive Intelligence will transform the way grocery retail works; AI-powered demand forecasting and inventory optimisation, autonomous shopping and frictionless checkout, smart pricing and promotion optimisation are just a few examples of solutions that will enhance decision-making and optimise operations. Humanoid Robots are also an exciting concept that might eventually revolutionise retail; however. the complexity and high costs associated with them make them less immediate and impactful than the technologies mentioned. In the near future, specialised AI-powered automation, such as robotic arms, autonomous shelf-scanning devices and self-checkout enhancements, will likely have a bigger impact than full-fledged humanoid robots.

• This article was part of GOLD magazine’s Cover Story in April. To view it click here