What Retailers Can Learn from Tech Companies Using Human Curation Rather than AI

Photo of man looking at computer screen
 

By Ben Rudolph

Retailers are blessed and cursed with vast and complex sets of data and information from a multitude of sources. From store foot traffic to omni-channels sales, to loyalty programs the sheer amount of data is staggering. Harnessing this data for the right insights and actions that can benefit consumers and help businesses profit is a challenge leaving many businesses feeling as if they are information rich and knowledge-poor.

Artificial intelligence (AI) is often presented as the solution to this enigma. Artificial intelligence (AI) is able to handle more data sets at a faster, cheaper, and more efficient rate than humans. AI is great at recognizing patterns, but struggles when creativity and personal taste are involved, i.e curation for things like music, TV, and clothing. The following three case studies demonstrate how even big-tech companies are recognizing AI’s limitations, and are reverting to human curation to offer the best recommendation for their customers.

1. Netflix Introduces Human Curated Collections: Have you ever logged into Netflix and been overwhelmed with the sheer amount of content? Previously, Netflix attempted to aid your discovery process by making “smart” recommendations. You are probably familiar with the subtext telling you whether a movie or TV show is a “98% match” or not.  You might end up watching one of these recommended titles for 20 minutes before switching to something else, or feel bombarded with too many options and simply turn off the TV.

With plateauing subscriber numbers, and impending competition from Disney+ and Apple TV+ this fall, Netflix is testing human driven recommendations with the launch of “Collections”. Human editors group together titles that correspond with themes including “Short and Funny”, “Let’s Keep it Light”, and many more. Regardless of how efficient an algorithm can be, it can never truly replicate personal taste and understand exploration based on human interaction. Human curation definitely represents a step in the right direction for cultural offerings, and speaking from personal experience, the majority of my viewing content stems from recommendations from actual people, like friends and family, rather than Netflix’s algorithms. 

2. Apple Puts the Heart Back into Music: In 2015, Apple launched its music streaming competitor to Spotify, Apple Music. Despite whatever service you use or prefer, a stark difference exists between the two in the way they handle playlist generation. During Apple Music’s launch, without specifically calling-out Spotify, Tim Cook said, “we worry about the humanity being drained out of music, about it becoming a bits-and-bytes kind of world instead of the art and craft.”

Apple Music’s take on recommendations represent a return to hand-crafted playlists and radio DJs. After Apple’s $3 billion purchase of Beats, it featured an impressive roster of music talent: Jimmy Iovine, Dr. Dre, Trent Reznor, and Zane Lowe. This A-list team of musicians and DJs continue to create curated playlists and are part of Beats1, Apple’s 24/7 radio channel that regularly features guest DJs like Nicki Minaj, Frank Ocean, and Elton John. Again, which music service is preferred is a touchy subject, and this article won’t say one is better than the other… However, Apple Music’s human touch appears to be working. Apple Music has surpassed the number of Spotify paying subscribers in North America, despite Spotify’s head start.

3. Humans over algorithms present the real news: Fake news, filter bubbles and confirmation bias demonstrate challenges for social media. In terms of algorithms and news consumption, not only can machine based recommendations harm traditional journalism, but they can be detrimental to our democratic institutions and further our social divides.

While Google, Facebook, and Twitter have each run into issues with the way they spread information, Apple News attempts to avoid controversy by relying on traditional editorial boards, rather than algorithms to pick headlines. Apple hired 30 former editors from The New York Times, The WSJ, CNN, and others, and have teams in Sydney, London, NYC, and Silicon Valley. The division is led by Lauren Kern, former editor-in-chief at the New York Magazine. Ultimately, every morning, the team selects five stories to lead the home screen of Apple News, prioritizing substance and accuracy over speed. Three years after its launch, Apple News is now read by 100 million people monthly and its top stories attempt to avoid prejudice and bias created by algorithmic news curation.

Retailers often feel the need to embrace technologies, despite the potential loss of human connection. Consider e-commerce over brick and mortar, algorithmic subscription boxes, and self-checkout to name a few. Yet, there are times when human touch is needed to inspire empathy and creativity. A joint study between McKinsey and Cannes Lions found that companies combining human curation with AI were growing twice as fast as their peers. Quoting Maya Angelou, “People will forget what you said. People will forget what you did. But people will never forget how you made them feel.” The smiling and genuine interest of a sales associate in a retail environment will never go out of style. 

Subscribe to our newsletter and get the latest retail insights & trends delivered to your inbox

Tricia McKinnonTrendsComment