EPISODE 1

SIGNALS TO SCALE:
WHY ONLY A FRACTION OF RETAIL PRODUCT AI PROJECTS DELIVER

Host
Lucy Nicholls
Lucy Nicholls
VP - Marketing & Design
Guest
Yasen Dimitrov
Yasen Dimitrov
Chief Analytics Officer
Many retail AI pilots promise transformation — but most collapse at scale. In this episode of The Commerce Cast, host Lucy Nicholls speaks with Yasen Dimitrov, Co-founder and Chief Analytics Officer at Intelligence Node, about why 95% of AI deployments in retail fail — and what separates the 5% that succeed.

Yasen unpacks:

  • Why deterministic retail problems break probabilistic AI tools
  • How to avoid the scaling trap when moving from 100 to 100,000 SKUs
  • The rise of multimodal transformers and leaner data teams
  • Why the future of AI in retail depends on smarter orchestration, not bigger models
  • How agentic systems are transforming eCommerce agility

Whether you're a retail CMO, CIO, or data leader, this episode will reshape how you think about scaling AI.

Listen now to learn why it’s not the technology that’s failing — it’s the approach.
Play

Key Takeaways

1. The 95% Illusion — and the Power of the 5%
Everyone talks about the 95% of AI projects that fail — but Yasen reminds us to study the 5% that succeed. Those companies aren’t chasing the latest model; they’re designing smarter processes that marry deterministic precision with probabilistic intelligence. “You can’t fix deterministic problems with probabilistic tools — at least, not end-to-end.”
2. The Scaling Trap
Many AI pilots shine in demos but collapse at scale.Why? Because LLMs can’t handle production-grade workloads like billions of SKUs or pricing updates per day. The winners know where to deploy AI strategically — not everywhere blindly. “We don’t use LLMs to scrape billions of products — we use AI to improve the regex that makes deterministic systems stronger.”
3. The Myth of the ‘One Model to Rule Them All’
Enterprises love silver bullets — but complex systems need context, not a single ‘ultimate source of truth.’ When multiple AI agents start talking without shared domain knowledge, confusion and cross-functional errors explode. “The more complex the system, the easier it is for the agents to confuse each other.”
4. The End of Excuses for Data Science Teams
The AI bottleneck has shifted. It’s no longer about hiring 300 PhDs — it’s about finding engineers and MLOps experts who can deploy, integrate, and scale open models effectively. Lean, cross-functional teams are the future.“Ten years of MATLAB experience isn’t an advantage anymore — it’s a legacy.”
5. Retail’s Unique Position in the AI Revolution
Retail is built for disruption. It’s online, dynamic, and data-rich — exactly what multimodal AI systems thrive on. From SKU intelligence to dynamic pricing, the opportunity lies in speed, modality, and reaction. “Retail already has the backbone. Now it needs the brains.”
6. Agentic Systems Are the New Advantage
With IPG Commerce, Intelligence Node is building agentic systems — AI-driven decision frameworks that help traditional brands act as fast as digital natives. Because speed and adaptability are the new moats. “We’re helping manufacturers productionalize change — not just spend more on retail media.”
7. Smaller Teams, Bigger Impact
Future data science teams will be smaller but more strategic — embedded with business functions, not buried in back offices. Think quant traders in finance, but for retail data. “Teams will shrink by 70%, but their influence will grow 10x.”
8. From ‘Innovation Provider’ to ‘Solution Partner’
Yasen’s advice for startups: stop selling innovation and start delivering impact. Use the best tools already out there — don’t waste years reinventing what OpenAI already perfected. “There’s no shame in using what works — the real innovation is in how you apply it.”
9. Security vs. Perfection — The Wrong Benchmark
Many enterprises fear what AI might leak instead of what their humans already miss. AI shouldn’t be compared to perfection — it should be compared to human error. “Humans are imperfect. AI will outperform us in most cases. Let’s stop holding it to impossible standards.”
10. The Final Thought
Retail’s AI revolution won’t be won by the biggest models — it’ll be won by the clearest thinking. By leaders who understand when to automate, when to orchestrate, and when to let go of control. “It’s not the end of data science. It’s the end of excuses.”
“AI isn’t failing — the way we use it is.”
That’s the central truth that runs through this sharp, candid conversation between

Lucy Nicholls and Yasen Dimitrov, Co-founder & Chief Analytics Officer at Intelligence Node.

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