Retail AI readiness doesn’t match urgency
Retailers almost universally agree that artificial intelligence is of major importance, but preparation lags.
According to a new survey of business and IT decision-makers in retail from AI-based application performance monitoring technology provider Riverbed, 96% of respondents agree that AI will have a notable impact on delivering a better digital experience for end users.
In addition, 95% of respondents say AI is a top C-suite priority and 84% agree it provides a competitive advantage. However, only 40% of respondents are fully prepared to implement AI projects now.
By 2027, 93% of respondents expect their organization to be fully prepared to implement their AI strategy and initiatives. Currently, 54% of respondents 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 respondents saying AI will primarily be a growth driver versus driving efficiencies (44%).
Organizational acceptance grows
Two-in-three (64%) respondents say AI sentiment in their organization is positive, 33% neutral and only 3% skeptical. When asked which generation is most comfortable with AI in the workplace, respondents said Gen Z (47%) and millennials (46%), followed by Gen X (6%) and baby boomers (1%).
Retailers move ahead with AI
The research also found that most retail organizations have moved past the stages of assessing and experimenting with AI. Today, 65% of respondents 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.
Most (84%) respondents claim to be ahead of their peers, including 35% who say they are significantly ahead. Only 4% say they are slightly behind. This gap between perception and reality indicates what Riverbed analysis indicates is overconfidence among many retailers about where their IT function is on their AI journey relative to their industry peers.
Data, security concerns
Close to nine-in-10 (87%) respondents acknowledge that great data is critical for great AI. However, 72% are concerned about the effectiveness of their organization’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% of respondents concerned that AI will access their organization’s proprietary data in the public domain due to their organization using AI.
Steps to drive successful AI initiatives in retail
To address AI preparedness, 55% of respondents have formed dedicated AI teams, and 50% observability and/or user experience teams. When it comes to data, 88%) say using real data, rather than synthetic data, is crucial in AI efforts to improve the digital experience, and 86% agree that observability across all elements of IT is important.
These elements include public cloud (86%), enterprise-owned mobile devices (85%), zero trust architectures (83%) and remote work environments (82%).
[READ MORE: Survey: Retail leaders optimistic on AI's holiday impact]
The Riverbed Global AI & Digital Experience Survey polled 200 business and IT decision-makers from the retail industry across seven countries, all with over $250 million in annual revenue (over $500 million in the U.S., U.K., and France). The survey was conducted by Coleman Parkes Research in June 2024.
