Retailers are increasingly adopting artificial intelligence (AI) to enhance customer experience (CX) and reduce losses, but many are encountering significant implementation hurdles, according to a recent report by Everseen. The study, based on a survey conducted by Censuswide, polled over 1,000 consumers and 200 executives from large U.S. retailers, revealing both the potential and challenges of AI integration in the retail sector.
AI Adoption in Retail
The report found that approximately 60% of retailers are already using AI for loss prevention, with an additional 30% planning to implement AI solutions within the next year. Key areas where retailers expect AI to deliver benefits include:
- Enhancing customer experience and support
- Optimizing store layouts
- Improving inventory management
However, despite the enthusiasm for AI, retailers face several obstacles. The most commonly cited challenges include the time and resources required for training, difficulty integrating AI with existing systems, and a lack of customer trust in AI technologies.
Balancing Innovation and Customer Trust
As retailers push forward with AI adoption, maintaining customer trust remains a top priority. Nearly 75% of consumers surveyed expressed a desire for greater transparency regarding AI usage in stores. To address these concerns, some retailers have begun implementing measures such as signage at store entrances to inform customers about AI systems in use.
Industry Leaders Embrace AI
Major retailers are already leveraging AI to drive innovation and efficiency. For example:
- Gap has established a dedicated AI unit to explore revenue-boosting applications, building on investments made in 2024.
- J.C. Penney, David’s Bridal, and Bath & Body Works are each pursuing unique AI strategies, focusing on areas like supply chain optimization and retail media enhancements.
- Industry giants like Walmart and Target are also developing comprehensive AI plans to streamline operations and improve customer experiences.
The Road Ahead
While AI holds immense potential for transforming retail operations, best practices are still evolving. Retailers must navigate the complexities of system integration, employee training, and customer acceptance to fully realize the benefits of AI.
As the industry continues to innovate, striking a balance between technological advancement and customer comfort will be critical. Transparency and clear communication about AI usage will play a key role in building trust and ensuring successful adoption.
