Almost all (96%) of business and IT decision-makers in retail agree that AI will have a notable impact on delivering a better digital experience for end users, according to Riverbed’s Global AI & Digital Experience Survey.  

Additionally, 95% of those surveyed at retail organisations say AI is a top C-Suite priority and 84% agree it provides a competitive advantage. By leveraging AI to streamline demand forecasting, optimise inventory, personalise customer interactions, and adjust pricing, retailers can have a better handle on these areas, and deliver a seamless digital experience.

Despite this enthusiasm and the benefits of AI, only 40% of retailers are fully prepared to implement AI projects now, as organisations address challenges ranging from data quality to scalability that are impacting their ability to realise the full benefits of AI.  

However, rapid expansion is anticipated during the next three years. By 2027, 93% of retail leaders expect their organisations to be fully prepared to implement their AI strategy and initiatives. This is higher than the overall industry average, in which 86% expect to be fully prepared within three years. 

Currently, 54% of business and IT decision-makers in retail say the primary reason for using AI is to drive operational efficiencies versus growth (46%). However, during the next three years, when AI is anticipated to mature, those numbers flip, with 56% of organisations saying AI will primarily be a growth driver versus driving efficiencies (44%).  

The survey found enthusiasm for AI is high among the C-Suite, younger generation employees and organisations as a whole – 64% say AI sentiment in their organisation is positive, 33% neutral, and only 3% sceptical. Today, 71% of retail leaders say AI is a key strategic priority for their organisation, and another 29% say it’s at least moderately important.  

The research also found that most retail organisations have moved past the stages of assessing and experimenting with AI. Today, 65% are accelerating their AI strategies with growing investment in infrastructure and talent; and another 25% are in the final transformative stage where AI is fully integrated into their business processes. 

Despite widespread AI enthusiasm, the research identified three major gaps that organisations must overcome to ensure their AI adoption results in benefits and enterprise success.

  1. Reality gap: Retail organisations are especially confident about their AI implementation for IT services and digital experience, with 84% claiming to be ahead of their peers, including 35% who say they are significantly ahead. Only 4% say they are slightly behind.
  2. Readiness gap: Only 40% of retail leaders say their organisation is fully prepared to implement AI projects now. Additionally, 77% say with AI still maturing, it’s challenging to implement AI that works and scales. 
  3. Data gap: Nearly all retail leaders (87%) acknowledge that great data is critical for great AI. However, of those surveyed, 72% are concerned about the effectiveness of their organisation’s data for AI usage, and only 45% rated their data as excellent for accuracy, with 42% saying their data quality is a barrier to further AI investment.           

There are also growing concerns in the sector about data confidentiality and security risks, with 91% concerned that AI will access their organisation’s proprietary data in the public domain due to their organisation using AI.