Retail Leaders Series (Part 4/8) : Separating Hype from Reality

Minimalist illustration of myth vs reality about AI

AI is often misunderstood — seen as magical, threatening, or only for big global players. The truth is that it's simply another tool to make predictions and automate repetitive work.

In this article, we'll bust the myths that hold back Philippine retailers from using AI productively.


Myth 1: “AI Will Take All Our Jobs”

Whenever new technology arrives, fear follows. But history shows tools don't erase jobs — they change them.

  • Barcode scanners didn't eliminate cashiers; they made them faster.
  • Excel didn't eliminate accountants; it let them analyze instead of manually tabulate.

AI works the same way: it automates the boring, repetitive work so people can focus on judgment, creativity, and relationships.


Myth 2: “AI Is Only for Big Tech Companies”

It used to be true that AI required PhDs and expensive infrastructure. But today, tools are cloud-based, subscription-based, and even free at entry-level.

  • A sari-sari store owner can use AI-powered apps for inventory monitoring.
  • A 10-branch retailer can deploy a chatbot to answer Messenger inquiries without hiring a 24/7 call center.

AI has become like WiFi or smartphones — once “advanced,” now commonplace.


Myth 3: “AI Is Too Expensive for Us”

Cost is relative. Hiring additional staff to manually encode thousands of receipts costs far more in the long run than using an AI-powered system that does it instantly. Many AI tools are priced per use or per user, making them affordable to SMEs.

Philippine example: A Cebu-based retailer uses an AI-powered vision tool to process delivery receipts at PHP 2–3 per scan — cheaper than paying staff overtime.


Myth 4: “AI Is Magic and Always Right”

AI is not magic. It's math. And like any system, it makes mistakes. Sometimes it produces “hallucinations” (confident but wrong answers). That's why human review is essential.

Think of AI as a smart trainee. Fast, eager, but still needing supervision.


Myth 5: “AI Will Replace Human Relationships”

Retail thrives on trust, service, and relationships. AI can draft messages, answer FAQs, and speed up service — but it can't shake a customer's hand, empathize with frustration, or build long-term loyalty. Those human qualities remain irreplaceable.


Call to Action

Philippine retailers should stop seeing AI as a threat or luxury. See it for what it is: a new tool in the toolkit. Like electricity, calculators, or POS systems, AI will soon be everywhere. The sooner you start experimenting — safely, responsibly — the sooner you'll unlock value.


Quick Quiz

1. Did barcode scanners eliminate cashier jobs?
2. Why is AI no longer only for big companies?
3. Why must AI outputs always be reviewed?