Retailers 'stuck' in exploring, planning phases of AI integration
Retailers agree that artificial intelligence is key for the future, but a majority have yet to fully adopt the technology.
While 83% of retailers indicate that AI is a necessity to compete, only 6% of retailers rate their current AI capabilities as "mature,” according to a new survey from Verizon Business and Cisco. Those who have yet to fully integrate AI say they are stalled in the "exploring" (31%) or "planning" (37%) phases.
Retailers surveyed cited poor or siloed data (55%) as a deployment challenge when implementing AI, while system integration challenges (48%) and lack of specialized talent (44%) also hinder progress.
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Data infrastructure (56% overall priority) and upgrading the network and computing abilities (42%) were noted as the biggest priorities for getting AI implemented. The survey noted that 61% of retailers reported revenue loss from slow digital experiences, and 55% from in-store mobile app crashes, highlighting that network infrastructure upgrades are needed.
Two-thirds (67%) of network upgrades are driven by AI and machine learning applications, followed by IoT and sensor networks (56%) and computer vision (54%). The report noted that the workloads demand high bandwidth and low latency, pushing traditional infrastructure past its limits.
The survey also found that a mobile-first and tech-forward workforce is the new standard in retail. Core operational efficiency like inventory accuracy (47%) and checkout speed (44%) were named by retailers as top business priorities and areas where technology can be deployed.
Capabilities like digital push-to-talk (65% deployed) and associate Wi-Fi (64% deployed) are commonplace, but Verizon and Cisco noted that the “true competitive advantage” is in near real-time execution tools such as mobile inventory tracking apps (32% deployed) and video-based associate training (35% deployed).
