Almost all retailers have developed AI, most are expanding capabilities
Retailer recognition of the value of artificial intelligence has reached near-universal levels.
New research from Honeywell reveals that 85% of surveyed global retail executives (including in the U.S.) have already developed AI capabilities and solutions, with 60% actively expanding them. Only 1% of respondents have not adopted AI-based solutions or are not evaluating them.
More than half (53%) of respondents plan to invest in AI capabilities over the next several years with investment in AI is either underway or planned within one to two years for 89%.
[READ MORE: Retailers plan to use AI in 2025 for...]
Drivers behind AI adoption
Respondents identified three primary motivators for implementing AI-based solutions:
- Achieving hyper-personalized customer experiences (34% overall, 40% in U.S.).
- Optimizing supply chain and last mile operations (33% overall).
- Smarter inventory and demand forecasting (33% overall).
Retailers automate data capture
Seven-in-10 respondents have completely or mostly automated their data capturing processes, with 80% of executives at those companies rating their ability to obtain trusted, high-quality data as "very strong." This confidence is even higher (83%) among responding companies with an IT function dedicated to AI.
However, nearly half (46%) of respondents describe their data capture as only "somewhat or a bit" automated.
Challenges and opportunities
More than four-in-10 (43%) respondents cite AI models and regulatory compliance as top concerns, while customer acceptance (40%) and workforce adaptation (38%) are also major issues. Security risks (37%) and vendor trust and reliability (34%) round out the list of pressing AI nissues for respondents.
For respondents already invested in AI, regulatory compliance is the single greatest challenge (50%).
Key data capture technologies
- Two-dimensional (2D) barcoding and QR codes (64%).
- One-dimensional (1D) barcoding (61%).
- RFID (47%) and sensing solutions (45%).
- Machine/camera vision (42%).
- Optical Character Recognition (OCR) (42%).
- Augmented reality (31%).
Honeywell commissioned Wakefield Research to conduct the Global Honeywell Retailer Technology Survey in May 2025 among 450 executives at large retailers about their use of AI and other technologies via an email invitation and online survey. The following markets are represented in survey data: the U.S., U.K., Germany, Brazil, India, United Arab Emirates and Saudi Arabia. The threshold of "large" retailer varied by country, with a minimum annual revenue of $100 million in the U.S.
