Small retail businesses are more innovative and agile than ever. According to the U.S. Chamber of Commerce, even companies with fewer than 10 employees are filing twice as many patents as larger competitors. This agility means small retailers can quickly adopt new technologies to improve operations and customer engagement.

Small businesses, particularly in the retail industry, have the unique opportunity to pivot and move even faster when they explore new technology. With unprecedented trade policies causing businesses to shift their game plans for 2025, many are in survival mode, while some are speeding up innovative initiatives within their businesses.

A small business’s agile nature, combined with the rise of tools like generative AI (artificial intelligence), represents an opportunity to become more efficient and build relationships with broader target audiences.

The Rise of Generative AI

Generative AI is transforming the retail industry in many ways, including enabling personalized shopping, copywriting for product listings, and so much more. It’s reshaping how retailers engage with their customers - both online and in-store - while driving operational efficiencies and supporting sustainability by minimizing overproduction, reducing returns, and optimizing delivery routes.

From improving decision-making to enhancing supply chains, generative AI is not just a technological advancement; it’s a game-changer for the future of retail.

Generative AI is not only transforming the shopping experience but also the supply chains that support it. By leveraging advanced data analysis, AI helps retailers improve inventory accuracy, reduce stockouts, and predict demand with greater precision. Generative AI complements this analysis by enhancing data quality, documentation, and communication across the supply chain.

A recent study by Info-Tech Research highlighted the need for retail companies to transition from outdated inventory methods to intelligent, data-driven operations in order to ensure the supply chain matches consumer needs.

To fully realize the benefits of generative AI, small brands must be willing to collaborate across the supply chain. Standardized data, master data quality (accurate and consistent core data), and interoperability (the ability of computer systems and software to communicate smoothly) are essential for seamless AI integration, ensuring that all stakeholders—from suppliers to logistics providers - work from a single source of truth.

An Existing Framework for AI Data

GS1 Standards, widely used in retail, provide the framework for retail brands to share clean, complete data with retailers and other trading partners and prepare it for enhanced automation through tools like AI.

For example, the Global Trade Item Number (GTIN) is a global standard for product identification. GTINs power the UPC barcodes you see every day and improve product discoverability across AI-powered search and e-commerce platforms. They support structured product data that AI systems can use to improve search relevance and product matching. In short, using GS1-sourced GTINs can ensure your products are more discoverable.

A GTIN should also be considered an identifier that stays with the product throughout its life cycle, including its online identity and physical presence.

Proprietary numbers or numbers that can’t be verified create silos that hinder AI’s effectiveness. The product could be mislabeled in retailer systems for years if brands don’t set up the data correctly from the product’s launch.

In AI terms, users want to avoid “walled gardens,” which are closed ecosystems in which a single provider controls the content, applications and user experience within the platform.

Walled gardens are counterproductive for AI, as they limit access to diverse datasets and reduce transparency. This restricts the ability of different systems to accept the same, standardized piece of data. Essentially, AI thrives on tech-agnostic, neutral data. GS1 Standards help companies structure data and label particular pieces of data to make AI more effective.

For example, many marketplaces have started offering AI assistance for product listings, which makes tasks like copywriting more efficient. GS1 US, the not-for-profit standards organization best known for the GTINs that power UPC barcodes, is looking at how AI can be used to pull together product attributes and identifiers faster and more accurately. This can potentially reduce manual errors that lead to costly workarounds, low customer satisfaction, and increased returns.

Getting Started: How Small Retailers Can Harness AI and Clean Data

• Use GS1 Standards like the GTIN to uniquely identify your products. This helps AI systems and marketplaces recognize and promote your products accurately.
• Review and update your product data regularly to ensure it’s complete and consistent. This “clean data” is the fuel AI needs to work effectively.
• Explore AI-powered tools offered by marketplaces or third-party providers to automate tasks like product listing, copywriting or inventory forecasting.
• Collaborate with your suppliers and logistics partners to share standardized data, creating a seamless supply chain powered by AI insights.

Ultimately, AI represents an immense opportunity for small businesses, but it requires a solid foundation of clean, accurate, and consistent data. GS1 Standards offer a valuable framework to ensure your data is feeding AI with the most complete and reliable information.

No matter how advanced AI becomes, good data is essential. By leveraging GS1 Standards, you and your trading partners will gain better insights and avoid the pitfalls of “garbage in, garbage out.” Embrace the power of AI and the standards that support it to drive your business forward in 2025 and beyond.

By Kaitlin Friedmann, Marketing Director, Small Business Growth, GS1 US