A new study from Apply Digital, which offers digital transformation solutions for global brands, reveals that the retail sector is making a decisive shift toward AI-powered personalisation. Ninety-five per cent of businesses are either already using or planning to adopt real-time product recommendations in the near term (71 per cent currently and 24 per cent within 12 months), while under two per cent have no plans currently.
Meanwhile, 93 per cent say they are already using or plan to use AI to enhance search capabilities. A further 89 per cent are investing in AI to personalise product descriptions – signalling a broad push toward relevance and real-time adaptation.
The figures come from a survey of 400 senior leaders, as part of a broader research initiative into the future of personalisation. The report, 2025 Leadership Priorities in Personalisation, finds that retail companies are among the most proactive in embracing AI to deliver tailored customer experiences – a trend driven by the need to stay competitive and respond to increasingly sophisticated consumer expectations.
The report’s author, Brian Browning, VP of Enterprise Solutions at Apply Digital, comments: “The pace of AI adoption in the retail sector shows that leaders aren’t waiting around as brands are focussed on turning moments of relevance into lasting loyalty.
“In fact, nearly three-quarters of retail businesses say they are already applying AI in some form in day-to-day customer experience delivery – a sign that the sector has moved well beyond experimentation. From dynamic promotions and personalised discounts to predictive merchandising and content tailored to local tastes, AI is helping brands fine-tune CX with increasing precision.”
Many retail brands are also investing in AI to enhance seasonal adjustments on products and promotions, utilise dynamic pricing based on user behaviour, and personalise navigation.
The report notes that this shift is supported by increased budget commitments. Over half of business leaders across sectors plan to spend more than $1 million on personalisation initiatives in 2025, with AI now seen as a critical growth driver.
However, consumer trust remains a key concern. While seven in 10 consumers, rising to 80 per cent of those aged 18-24, say they value personalisation, nearly 40 per cent want greater control over how their data is used. Businesses that are transparent about data collection and security, and that offer clear value in return, are best positioned to build lasting relationships.
As the industry prepares for the arrival of agentic AI — digital assistants that act on behalf of consumers — the report suggests retailers will need to adapt quickly. From automated purchasing to real-time product discovery, the customer journey is poised to change radically.
Sarah Hackett, SVP of Growth at Apply Digital adds: “Today’s consumers expect engaging experiences, but personalisation isn’t just about engagement. One-to-one experiences drive revenue, repeat purchase, and long-term growth. That’s why the retail brands that combine AI with empathy and trust won’t just meet customer expectations — they’ll define them.”
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