The survey found that 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.
Riverbed, a provider of AI Observability, announced the Retail sector results of the Riverbed Global AI & Digital Experience Survey.
The survey found that 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. Additionally, 95% of those surveyed at retail organisations say AI is a top C-Suite priority and 84% agree it provides a competitive advantage.
In a fast-paced industry where customer service is a priority, the opportunity to use AI to personalise products and services, revolutionise delivery channels, and effectively manage peaks in demand such as Black Friday and Cyber Monday are vast. By leveraging AI to streamline demand forecasting, optimise inventory, personalise customer interactions, and adjust pricing, retailers can have a better handle on these stress points, 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, which is crucial as retailers seek to implement practical AI approaches and solutions that improve the shopping experience. By 2027, 93% of retail leaders expect their organiaation 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%).
Gen Z and Millennials in Retail Demonstrating AI Expertise
With AI set to transform retail organisations worldwide, the survey found enthusiasm for AI is high among the C-Suite, younger generation employees and organisations as a whole.
- 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.
- There is strong enthusiasm for AI adoption in retail organisations. 64% say AI sentiment in their organisation is positive, 33% neutral and only 3% sceptical.
- Across all sectors, Gen Z is perceived as the standard-bearers for AI, but business and IT decision-makers in the Retail sector perceive Millennials as equally comfortable with the technology. When asked which generation is most comfortable with AI in the workplace, retail leaders said Gen Z (47%) and Millennials (46%), followed by Gen X (6%) and Baby Boomers (1%).
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.
“As retailers prepare for seasonal flash sales such as Black Friday and Cyber Monday, the adoption of AI technology is revolutionising the Retail sector, offering personalised recommendations and superior shopping experiences,” explained Jim Gargan, CMO, at Riverbed.
“However, leveraging AI to analyse consumer buying behavior and trends requires access to great data and our recent study reveals that only 45% of business and IT leaders in retail organisations rate their data as excellent for accuracy. At Riverbed, we’re helping our retail customers close this data gap through a practical AI approach, with an AI-powered platform that offers comprehensive data and visibility across the entire IT environment. As a result, this enhances the employee experience and productivity, which in turn delivers superior customer experiences, ultimately increasing loyalty and sales for retailers.”
Driving Successful AI Initiatives in Retail
Enterprises are taking several steps to overcome challenges and drive successful AI strategies that deliver tangible results. To address AI preparedness, 55% of Retail sector organisations have formed dedicated AI teams, and 50% observability and/or user experience teams. For this sector, investment in AI talent is becoming a priority, as retailers recruit data scientists, AI specialists, and engineers to maintain a competitive edge in a rapidly evolving landscape.
Retailers are exploring other initiatives to drive successful AI integration. When it comes to data, the vast majority of retail leaders (88%) say using real data, rather than synthetic data, is crucial in AI efforts to improve the digital experience. Additionally, 86% of respondents agree that observability across all elements of IT is important in an AIOps strategy, and observability to overcome network blind spots – including public cloud (86%), enterprise-owned mobile devices (85%), Zero Trust architectures (83%), and remote work environments (82%) – is either extremely or moderately important.
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