Kristin Howell: How AI Is Disrupting Our Industry, and What We Can Do About It

An Interview With Cynthia Corsetti

Be flexible: The last few years have delivered multiple financial and supply chain disruptions to retailers. It’s important to adapt to any changes to the workforce or consumer demand.

Artificial Intelligence is no longer the future; it is the present. It’s reshaping landscapes, altering industries, and transforming the way we live and work. With its rapid advancement, AI is causing disruption — for better or worse — in every field imaginable. While it promises efficiency and growth, it also brings challenges and uncertainties that professionals and businesses must navigate. What can one do to pivot if AI is disrupting their industry? As part of this series, we had the pleasure of interviewing Kristin Howell.

Kristin Howell is the Global Vice President within SAP’s Retail Industry Business Unity, and she specializes in merchandising, marketing, planning, pricing, promotions and predictive analytics. She has 25 years of experience across retail and technology, including leadership roles in management consulting, solution design, product marketing and software development. Kristin holds an MBA from the W.P. Carey School of Business at Arizona State University and a bachelor’s degree from the University of Southern California.

Thank you so much for joining us in this interview series. Before we dive into our discussion our readers would love to “get to know you” a bit better. Can you share with us the backstory about what brought you to your specific career path?

I’ve always had a passion for retail and technology, working across various leadership roles in management consulting, solution design, product marketing, and software development. Yet, I was truly able to grow and thrive once the company I was working for was acquired by SAP in 2006. I’ve been able to focus on SAP’s suite of solutions within the retail business unit, as I focus on driving revenue and leading strategic customer engagements. I’m grateful for the opportunities I’ve received so far and look forward to what is to come.

What do you think makes your company stand out? Can you share a story?

SAP is a diverse and global organization, with every employee bringing their unique experience and traditions. In my 22 years of working at the company, I’ve seen how this culture of inclusivity enables innovation across every industry — from retail to financial services to manufacturing to sports and entertainment. We work with companies of all sizes and verticals — 99 of the largest 100 companies are SAP customers — and we deliver critical technologies that help them run more efficiently.

I’ve been lucky enough to work with a few of those companies and alongside some brilliant colleagues from around the world. Wherever I am, no matter what I am working on, I can call on an SAP teammate for assistance. We are truly a global company with employees who want to step in when you need help.

You are a successful business leader. Which three character traits do you think were most instrumental to your success? Can you please share a story or example for each?

First, it is vital to always listen to all colleagues, regardless of experience or stature. Early in my career, I was shy and intimidated by my colleagues in big meetings. But I used these opportunities to observe and adapt my own style. As I have progressed in my career, I have learned the value of listening first and understanding the needs of my clients and team. Now, listening has become my superpower: I call on it every day to build meaningful connections with internal and external stakeholders.

Second, I learned how to take my ideas from brainstorming to tangible strategies and tactics. I remember working with a retailer on an optimization solution, but it was getting close to the holiday season and the algorithm was not producing consistent results. With the peak season of shopping quickly approaching, I stepped in and used my experience as a data scientist to identify and troubleshoot the problem. I knew we had the right solution, but we had to find the right way to implement it to appease the customer.

Finally, failure is critical. Yes, I said failure. Taking risks should be normalized and we should be comfortable with the potential to fail, or at least the potential to achieve less than 100% of your expected outcomes. That is the best way to learn, grow, and, eventually, succeed.

Let’s now move to the main point of our discussion about AI. Can you explain how AI is disrupting your industry? Is this disruption hurting or helping your bottom line?

I’ve been working with AI for years in different forms — designing software solutions and helping retailers get more efficient with their inventory. Now, I work directly with companies around the world and see the opportunity.

AI has incredible benefits for retailers, like increasing the probability of sales, basket sizes, and total sales volumes. It can help convert cherry pickers to loyal customers by reducing costs, optimizing inventory management and anticipating needs from one shopping event to another. It can also make product and category management more efficient, reducing manual processes from days of work to seconds. For consumers, AI can create more relevant search results and more tailored recommendations. One example of this is a personalized styling buddy or shopping assistant who can make finding items easier, faster, and more enjoyable.

Additionally, retailers are using AI to appeal more to younger buyers by personalizing experiences that match their preferences and lifestyles. Gen Z tends to be more value-based and are more likely to shop in the recommerce market for discounted luxury items. They want a more streamlined experience that takes them anywhere, anytime, and AI offers brands access to more accurate insights that can ensure exceptional experiences at every touchpoint.

The mainstream use cases for AI are focused on virtual chatbots and personalized Instagram ads, but I see the true power in retail coming from demand forecasting and advanced analytics that can predict buying patterns and consumer trends. When done correctly, retailers can target marketing tactics to reach buyers and improve customer experiences, impacting both the top and the bottom line.

Can you share a pivotal moment when you recognized the profound impact AI would have on your sector?

I have seen some impactful AI use cases over the years, but I truly realized the hype was real this year at NRF in New York. You could not have one conversation, attend one session, or walk by one vendor without seeing, hearing, or thinking about AI in retail. AI can be embedded across the entire workforce and all aspects of the product lifecycle, from manufacturing to marketing and sales. When integrated across the company, it can deliver insights that improve the bottom line. Whether it is in HR, or supply chain, or customer experience, there is a use of business AI for you.

How are you preparing your workforce for the integration of AI, and what skills do you believe will be most valuable in an AI-enhanced future?

When speaking with retail customers, I always remind them that there is a human component to AI. Retailers, like SAP, are large employers and have an obligation not to neglect the human impact. There’s an evident opportunity for retailers to embed AI across their workforce, but they must do so responsibly.

Leaders should be honest and transparent when speaking about the benefits and guardrails of advanced technology. They should share consistent and truthful updates on AI integration with their team, while also leaning on internal case studies as proof of the power of the technology with customers. Within SAP, I ensure that my own team has access to AI and generative AI tools compliant with organizational rules that can optimize their daily tasks. We are lucky at SAP to have access to these technologies, but we should empower employees to constantly upskill to any trends or changes.

What are the biggest challenges in upskilling your workforce for an AI-centric future?

The rapid pace of AI transformation presents various challenges. At SAP, we’re experiencing our own AI transformation while leading customers through theirs. Balancing that transition has not been simple, but it’s possible if we prioritize collaboration across departments and teams.

I try to take a holistic approach to create an AI-ready environment. This involves continuous learning, adapting, and innovation. I’m committed to empowering my own team to develop the necessary skills and knowledge so we can work alongside the technology to deliver innovation to our retail customers. I’m excited about the possibilities for AI, but it’s vital that leaders stay cognizant of any shifts or changes, as agile companies will see the most success.

What ethical considerations does AI introduce into your industry, and how are you tackling these concerns?

This is such an important question! What comes to mind first and foremost is the privacy of the consumers’ data. There are many great use cases where AI can leverage facial recognition or location tracking to provide the consumer with a better experience, but it is vital to understand when it crosses a line. In addition, gaining consumer trust that their data won’t be shared or worse, stolen, is imperative. SAP ensures that all our AI processes are responsible, reliable, and relevant. We’ve been trusted for over 50 years with important data, and we carry the same oversight and responsibility to our AI services.

What are your “Five Things You Need To Do, If AI Is Disrupting Your Industry”?

I’ve listed my five tips below, but it’s important to constantly be aware of new changes and updates around AI.

  1. Have clean data: It’s well known that the mindset of garbage in, garbage out is critical. This has never been truer than with AI. AI is only as good as the data it runs on. Without the right data as an input, it’s difficult to get the right outputs.
  2. Pick one use case and run with it: The hardest part is often getting started, as many organizations are forced to utilize change management to ensure AI initiatives are successful. It’s best to focus on an initial use case to create an example for future AI-focused tactics and then build on that success.
  3. Fail fast: Not all use cases will be winners. If an initiative is not working, do not be afraid to move on. The industry moves too fast to stay focused on ideas that are not successful.
  4. Don’t be distracted by shiny objects: There are infinite use cases for AI, but that does not mean each one is applicable to your organization’s industry or size. Narrow your scope to what tools fit your companies’ scope.
  5. Be flexible: The last few years have delivered multiple financial and supply chain disruptions to retailers. It’s important to adapt to any changes to the workforce or consumer demand.

What are the most common misconceptions about AI within your industry, and how do you address them?

Many people don’t realize that AI has existed for decades and has previously been used in retail technology. I remember working as a data scientist years ago on AI models to optimize back-office management for retailers.

In recent years, AI as a concept has become more mainstream, and the technology can match the hype. We can process greater amounts of data at faster speeds through more powerful computing. With various forms available to companies, I always emphasize to customers the importance of matching the right form of AI to the right use case to fit their business.

Can you please give us your favorite “Life Lesson Quote”? Do you have a story about how that was relevant in your life?

My favorite quote is “You can’t finish what you don’t start.” Working at SAP for over 20 years, I’ve learned that it’s better to voice my opinion and collaborate than sit back and wait. I’ve worked on dozens of product innovations, both in retail and beyond, and I’ve learned that the best advancements come from taking risks. The first step is always the hardest, but it is the most important. Even if I am incorrect, providing the wrong answer can help the team eventually identify the best possible solution. I’ve implored my colleagues and coworkers to always take the first step and take the first bite, as it’s the best way to learn.

Off-topic, but I’m curious. As someone steering the ship, what thoughts or concerns often keep you awake at night? How do those thoughts influence your daily decision-making process?

I’ve heard from retail CIOs that they’re fearful of the ethics around AI implementation. They are concerned that broad data transformation strategies will put their information at risk. It’s vital for enterprise technology partners to ensure data privacy, specifically regarding AI.

That’s why at SAP Sapphire we adopted the 10 guiding principles of the UNESCO Recommendations on Ethics of Artificial Intelligence, which aims to develop AI technologies that respect human rights, promote fairness, and contribute to sustainable development. Our priority is to instate business AI that prioritizes the humans behind the technology. We’re consistently keeping human-to-human interactions top of mind.

You are a person of great influence. If you could start a movement that would bring the most amount of good to the most amount of people, what would that be? You never know what your idea can trigger. 🙂

Like many other parents, I think about the future world that we will leave to our children and how the decisions and work we all do today could have a real impact on that future. As a lifelong technologist, I work every day delivering technology to solve real-world problems. And as technology has advanced, so has the scope and complexity of these issues that I think we can solve if we work together — as corporations, as citizens, and as parents looking to leave a better world behind for our kids.

The retail industry has a unique capability to reduce carbon emissions through better demand forecasting and efficient supply chain processes. This includes keeping clothes out of the landfill, decreasing the amount of food waste, and limiting emissions into the atmosphere. At SAP, we are following this mission by bringing the right technology into the right processes to make a real sustainability difference.

I’d like to see retailers and other partners step up and join SAP on this mission. Brands can take simple steps toward achieving a circular economy by encouraging recommerce. Additionally, retailers can opt to work with eco-friendly stakeholders along the supply chain to minimize waste and emissions. With the latest technology innovations, we can drive both profitable and sustainable outcomes that could have a sustained impact on the world around us.

Thank you for the time you spent sharing these fantastic insights. We wish you only continued success in your great work!

About the Interviewer: Cynthia Corsetti is an esteemed executive coach with over two decades in corporate leadership and 11 years in executive coaching. Author of the upcoming book, “Dark Drivers,” she guides high-performing professionals and Fortune 500 firms to recognize and manage underlying influences affecting their leadership. Beyond individual coaching, Cynthia offers a 6-month executive transition program and partners with organizations to nurture the next wave of leadership excellence.