In its Global AI & Deiverability Survey, Riverbed found that 96 per cent 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 per cent of those surveyed say AI is a top C-Suite priority with 84 per cent agreeing that 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 per cent 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 realize 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 per cent of retail leaders expect their organisation to be fully prepared to implement their AI strategy and initiatives. This is higher than the overall industry average, in which 86 per cent expect to be fully prepared within three years.
Currently, 54 per cent of business and IT decision-makers in retail say the primary reason for using AI is to drive operational efficiencies versus growth (46 per cent). However, during the next three years, when AI is anticipated to mature, those numbers flip, with 56 per cent of organizations saying AI will primarily be a growth driver versus driving efficiencies (44 per cent).
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 per cent of retail leaders say AI is a key strategic priority for their organization, and another 29 per cent say it’s at least moderately important.
- There is strong enthusiasm for AI adoption in retail organisations. 64 per cent say AI sentiment in their organisation is positive, 33 per cent neutral and only 3 per cent sceptical.
- Across all sectors, Gen Z are 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 per cent) and Millennials (46 per cent), followed by Gen X (6 per cent) and Baby Boomers (1 per cent).
The research also found that most retail organisations have moved past the stages of assessing and experimenting with AI. Today, 65 per cent are accelerating their AI strategies with growing investment in infrastructure and talent; and another 25 per cent are in the final transformative stage where AI is fully integrated into their business processes.
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