Todd James, the former chief data and technology officer for Kroger’s data arm 84.51°, has launched Aurora Insights, a consultancy aimed at helping businesses navigate the complexities of artificial intelligence (AI) integration. After nearly four years at Kroger, where he helped scale the company’s analytic capabilities, James decided to leverage his experience on the consultancy side to make AI less daunting for businesses.
The Genesis of Aurora Insights
James’ decision to start Aurora Insights was driven by his belief that the timing is right for businesses to get support in their AI journeys. “We’re beyond the experimentation phase with AI, and a lot of companies are stuck there,” James explained in an interview with Grocery Dive. He sees a significant market need for guidance as companies understand they need to make a pivot towards AI but are looking for help.
Common Misconceptions About AI
One of the primary misconceptions James sees among business leaders is viewing AI as a ‘magic wand’ that can transform their operations overnight. “The misperception is that ‘If I do an AI initiative, I should be seeing transformative value,'” James said. In reality, companies that are truly getting ahead with AI are playing a longer-term game, focusing on restructuring their operations to better inform and automate decision points at scale.
Another misconception is that AI operates in a vacuum. The true power of AI emerges when it is applied to specific business problems, taking into account the workflow and the people involved. James noted that while some companies are doing this correctly, many have mystified AI to the point of forgetting what it takes to change and reposition a business effectively.
In-House Data Teams vs. Outsourcing
James foresees both in-house data teams and outsourcing to specialized firms coexisting in the AI landscape. He identifies two ‘races’ happening with AI: one is about quickly adopting commoditized AI capabilities to move to a new cost curve, where hyperscalers’ platforms can provide non-differentiating capabilities. The other race, which is about differentiation, hinges on proprietary data, data science assets, and the ability to operationalize data and science quickly. For the latter, in-house teams will remain crucial because companies don’t want their strategic differentiation to be externalized.
AI Implementation at Kroger
During his tenure at 84.51°, James directed the development of an ‘AI factory’ capability layer across Kroger. This platform was designed to scale and democratize AI usage within the organization, providing a reusable technology capability, guiding the selection of large language models, and educating stakeholders about AI. The initiative included training for directors and above in data acumen by the end of the fiscal year.
Practical Applications of AI in Grocery Retail
James shared examples of how AI-powered tools changed workers’ responsibilities at Kroger. One example was dynamic matching for online grocery pickup orders, which reduced the lead time window and associate workload while improving customer flexibility. Through advanced routing algorithms, operational improvements, and training, Kroger reduced the distance traveled for pickup orders by about 10% across 2,500 stores, ultimately enhancing both associate efficiency and customer experience.
Looking Ahead with Aurora Insights
While James is having discussions with grocers, the focus of Aurora Insights will be cross-industry, with significant knowledge and access to resources, particularly in retail and financial services. His passion for helping companies make the AI transition stems from the belief that AI will profoundly impact the competitive landscape, and those that fail to adapt will risk their customers, shareholders, and employees.
