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What “AI/IoT-Ready” Really Means on the Shop Floor – a New Perspective for Retailers

AI in Retail

The retail playbook has been fundamentally rewritten. Customer journeys are omnichannel by default, IoT sensors are now omnipresent in both warehouses and shop floors, and AI is moving from pilot to P&L at an unprecedented pace. And the results are already proving transformative:

  • Time-to-open: New stores and pop-ups are networked, secured, and POS-ready in days, not weeks.
  • CX becomes predictive: Personalised offers and staffing respond to real-time signals, not yesterday's batch.
  • Shrink is minimised: Vision-based loss prevention, plus better on-shelf availability.
  • Cost-to-serve falls: Energy, logistics, and labour are optimised by rich streams of real-time date.
  • Audits are boring (in a good way!): PCI and security postures are continuously and consistently maintained across estates and partners. 

But in the race to access all these potential benefits, the winners aren't the ones with the flashiest demos – they're the ones with a rock-solid digital foundation that lets AI and IoT platforms scale safely, securely, and intelligently, store by store.

So, from Exponential-e's vantage point across cloud, connectivity, cyber, and communications, and our ongoing conversations with top retailers across the UK, here's what "AI/IoT-ready" actually means for the sector, and how we can begin laying those all-important foundations…

A network built for real-time, store-level intelligence

IoT and AI thrive on low latency and high availability, particularly when Point of Sale (PoS), inventory, and computer-vision workloads are increasingly interconnected. That means the underling WAN stops being a cost line and becomes a growth platform. Frictionless shopping experiences, incorporating queue-free checkout, real-time offers, and dynamic pricing, depend on fast, reliable data flows at the edge.

Software-defined networking, built on a private VPLS core, makes this practical at scale, offering centralised control, application-aware routing, seamless use of diverse access (i.e. ethernet, 4G/5G), and integrated security. Beyond the immediate operational advantages of avoiding hairpinning over the public internet and low, predictable latency, such networks offer the scalability and agility needed for pop-ups, seasonal peaks, and new store openings, where day-one uptime and policy consistency are required.

This should be complemented with enterprise IoT/M2M SIMs that deliver multi-carrier access and centralised control for store sensors, handhelds, lockers, smart signage, and similar devices.

Cloud and edge compute as a single, unified platform

 AI-assisted retail is a hybrid sport: heavy training and data engineering in the Cloud, instant inference and control at the edge. To this end, retailers pursuing "always-on", augmented stores are converging 5G, IoT, and AI with edge compute to deliver truly personalised experiences in the moment, not hours later. This next-gen local processing, with edge computing implemented in every store, delivers a seamless PoS for customers, while simultaneously optimising staff's efficiency and reducing backhaul costs.

In the longer term, centralised data platforms and AI services can crunch multi-store telemetry for demand forecasting, replenishment, and customer analytics, offering a rich stream of actionable insights that enable reduced energy usage, automated restocking tasks, and smoother labour scheduling - immediate, powerful operational wins.

These capabilities can be developed into a standardised model and then be deployed, managed, and scaled consistently across new sites as retailers expand their operations. It's no surprise that multiple European retailers are already doing exactly this to not only protect their immediate margin and availability, but also accelerate their future growth plans.

Embracing the 'secure by design' model

Retail IT estates increasingly span POS, e-commerce, click-and-collect, and IoT devices. However, more devices and more data mean an increased attack surface, particularly when it comes to customers' payment data. As a result, robust security must be embedded in the design of all systems, platform, and processes, not bolted on later. Forward-thinking retailers are already rolling out this 'secure by design' approach, building customer trust through multi-layered, PCI-DSS-ready security ecosystems that allow for continuous monitoring and intelligently automated policy enforcement.

Secure Access Service Edge (SASE) has a key role to play here, converging network and security in the Cloud and offering numerous pathways to establishing identity-centric access, micro-segmentation of IoT devices, and uniform policies across stores and partners. Even with thousands of distributed end points, all this can be accessed through a single pane of glass - a "single source of truth" for all networks, devices, and workloads. 

Taking the next step of your AI/IoT journey

AI and IoT in retail aren't separate projects; they must be treated as fundamental parts of a single, software-defined platform that reaches every shelf, sensor, and checkout. Build the network and edge right, wrap it with zero-trust security, and connect it to a governed data and AI backbone, then scale and optimise what works.

If you'd like this distilled into a tailored blueprint for your own estate (i.e. current stores, formats, and use-case priorities), we can map the stack, identify quick wins, and sequence the roadmap to outcomes, with everything overlaid by a single SLA, as a fully integrated service. Get in touch to discuss your own AI and IoT goals and let's make sure you're building on the right digital foundation! 

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Exponential-e & BDO

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Working together to establish a new standard of excellence for IT service desk operations

About BDO

BDO UK provides tax, audit and assurance, advisory, and business outsourcing services to companies across the public and private sectors, with more than 9,500 employees operating out of 18 office locations across the UK.
The Challenge

In order to better support its analysts across the country, the decision was made to execute a full-scale digital transformation of the entire Virtual Contact Centre and Teams Dialling system, building on the existing investment in Microsoft Teams to establish a centralised platform through which end users could make contact via a range of channels, including voice, email, and chatbot. This would ultimately support the phasing out of legacy telephony in favour of more scalable, flexible omnichannel solutions, while providing team leaders with real-time visibility of the entire service desk operation. The quality of BDO's IT service desk improved as an outcome acknowledged by the Service Desk Institute, who awarded it a four-star rating in 2024.

Critical priorities for the project were simplifying the management of Microsoft Teams licences, which needed to be purchased on an individual basis with the incumbent solution, and streamlining and optimising the user journey wherever possible, taking full advantage of the latest innovations in AI-powered automation and analytics.

A rigorous tender process was conducted, with a key priority being the ability to design and deliver a solution within four months, avoiding any operational disruption. At the end of this process, Exponential-e were selected as the sole technology partner for the project, building on an already strong partnership with BDO, and began working closely with their contact centre and back-office teams to determine the ideal specifications for the new platform.

Based on this findings of this assessment process, Exponential-e's Teams Calling as-a-Service platform, integrated with the industry-leading Five9 Intelligent CX suite and the ServiceNow® ITSM solution, was identified as the perfect fit for BDO's requirements, providing users with the Teams functionality they had come to depend on, while also opening the door to a wide range of potential enhancements. 

The Solution

The tools Exponential-e have provided have contributed towards the digital transformation journey BDO have been on. Our mutual passion for the user experience has helped us reshape our whole approach to the service desk, and we're very much looking forward to building on these successes in the years ahead.

Lee Trimmer, Head of Service Delivery, BDO

The first phase of the deployment involved managing a seamless transition for all analysts and end users by replicating their existing Teams functionality in the new platform, allowing them to start making use of it straight away. This meant the migration process was completely invisible to the 6,000 employees already using Teams.

With this foundation in place, BDO began working with their dedicated account team to identify potential opportunities for automation, the first of which involved the onboarding process for new joiners, who would automatically receive an email with the details of the Teams dial pad, with no manual intervention required. At the same time, should an end user leave the company, their account would automatically be closed and their number made available again. This pay-as-you-go model immediately resulted in tangible cost savings by ensuring BDO would only ever pay for the licences in active use.

Building on this, the Five9 platform was heavily customised to suit BDO's specific goals for its overall user journey. Key to this was the integration of the platform's chatbot with BDO's own Azure LLM and ServiceNow®, allowing it full access to an evolving knowledge library. This bespoke chatbot (dubbed ELSA!) is now able to automatically direct users to the article most likely to lead to a successful resolution. If it is unable to do so, they are automatically put through to the appropriate analyst.

ELSA's intuitive, conversational interface and broad range of insights meant the initial uptake was high, averaging more than 200 interactions per month, of which around 50% are resolved with no need for human intervention. The chatbot's capabilities have since been extended to run automated routine fixes with BDO's primary audit tool, saving service desk analysts time and offering the users faster resolutions.

As a result of these improvements, BDO have significantly reduced their service desk's dependence on traditional telephony and email, with most end users now preferring the inherent flexibility and ease of the new chat and self-service options, allowing analysts to more efficiently manage their cases.

With the implementation of Five9's workforce engagement tool, BDO are looking to automate further quality control checks to focus directly on problem areas rather than relying on dip sampling calls. Through the application of intelligent analytics, this identifies which interactions team leaders should listen to in order to support their analysts, identify gaps in the user experience, and act on new opportunities for improvement as they emerge. When combined with the technical data collected by ServiceNow®, this will provide BDO with a holistic, real-time view of its entire service desk operation.

The transformation of BDO's service desk was later recognised at the Service Desk Institute's 2025 awards ceremony, where it was named as 'Service Desk of the Year – Large Team'. It is also now eligible to be certified as a five-star service desk, of which there are only four in the world at the time of writing.

BDO have long led the charge for service desk excellence, and the success of this project is testament to that. When people and technology come together in this way, a seamless, interconnected user experience becomes possible across every channel, which I fully expect to become the new standard for service desk operations.

Gareth Hayes, Head of UC & CX Solutions, Exponential-e

Solution Benefits

  • A seamless migration process from disparate legacy technologies, with no disruption to day-to-day operations

  • Intelligent automation of routine processes enhances analysts' efficiency and performance, freeing them to focus on the most complex cases

  • 50% of all interactions resolved without any need for human intervention, thanks to a bespoke chatbot and evolving knowledge base 

  • Automated onboarding and offboarding of employees and sustainable cost savings through pay-as-you-go pricing
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Talking, listening, optimising: rethinking the customer journey in the new era of AI

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In the contact centre, the customer journey is everything. Every potential point of interaction must be carefully considered, with systems and processes established to maximise the chances of a fast, satisfactory resolution.
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How well do you really know your contact centre operation?

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It's often said that "You don't know what you don't know". This is especially true in the modern contact centre, where a range of different customer interactions are taking place on a near-constant basis, across a growing range of different channels. It might be tempting for managers to assume that if they aren't having any problems presented to them, everything is running perfectly.
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Leveraging pioneering SASE technology with Gartner’s 2024 Magic Quadrant™ Leader, Cato Networks

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Secure Access Service Edge (SASE) is rapidly establishing itself as the solution of choice for the next generation of enterprise networks, where optimal control, visibility, and scalability are essential. In the first quarter of 2024 alone, the SASE market experienced a 23% surge, as more and more organisations began taking advantage of its capabilities.

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From Analogue to Digital and Beyond - The Potential Impact of AI on the UK’s Healthcare Services

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On the morning of 12th September 2024, the UK Health Secretary, Wes Streeting, pinpointed three 'big shifts' that would be required to transform the NHS:

  • From hospital to community care
  • From analogue to digital
  • From treating sickness to preventing it
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When it comes to AI in the contact centre, the first steps are the most critical…

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Customer service is in the middle of a deeply transformative period. Regular readers of this blog will already be familiar with the role AI has to play in this journey, and the way technologies like machine learning and Natural Language Processing (NLP) are transforming the customer experience.
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AI in the Contact Centre: People, Bots, and the New Customer Experience

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In the space of just a few short years, Artificial Intelligence (AI) has gone from being a somewhat niche field, to front and centre in the public consciousness. With the rise of ChatGPT and similar platforms, there is much speculation about where this technology is heading, and what its impact will be on our personal and professional lives. Indeed, organisations across numerous sectors are already exploring the different ways it can be utilised to reduce costs, optimise efficiency, and improve service quality.

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