Dive Brief:
- Retailers are running into implementation hurdles as AI adoption ramps up, according to a Feb. 25 Everseen report. The findings come from a survey conducted by Censuswide, which polled more than 1,000 consumers and 200 executives at large retailers in the U.S.
- Around 3 in 5 retail companies have turned to AI to boost loss prevention, with another 30% planning to do so in the next 12 months. The top benefits retailers are eyeing include better customer experience and support, improved store layout and better inventory management, Everseen found.
- Implementation challenges persist. Retailers most often cited the time and resources needed for training and a dearth of customer trust as key hurdles, followed by difficulty integrating with existing systems.
Dive Insight:
Retailers have AI on their minds. Leaders hope the technology can help with operations, from sourcing to customer service, and some see AI as a game-changer.
At one of the largest retail-focused conferences of the year, the National Retail Federation’s event in January, around 40,000 attendees discussed AI’s potential impact on supply chains, personalization and privacy.
While best practices are still being ironed out, strategies are taking shape.
Gap plans to capitalize on investments it made in AI last year by exploring ways for the technology to boost revenue, executives said during its Q4 2024 earnings call earlier this month. As the company pursued a digital-first mindset, it set up a unit last year dedicated to driving AI innovation across its strategic priorities.
J.C. Penney, David’s Bridal and Bath & Body Works are executing their own AI strategies, each with a different core focus, such as supply chain optimization or retail media improvements.
The largest retailers, such as Walmart and Target, are also building out robust plans.
As retail companies move forward with AI plans, shifts in customer sentiment are top of mind. Balancing innovation with customer comfort will be key. Nearly three-quarters of shoppers surveyed by Everseen wanted greater transparency of AI use in grocery and retail stores. Retailers are addressing the concern so far by adding signage disclosing the use of AI at entrances, among other tactics.
