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Over three-quarters of retail leaders say that innovation requires analytics and AI, but fewer than one-third believe their current capabilities in those technical areas give them a competitive advantage, according to May research from EY.
Over half of retailers say AI, data and analytics are a top priority, according to the survey of 500 consumer products and retail executives, 20,000 consumers and almost 200 CEO’s.
Three-quarters of consumer product leaders report relying more on AI and analytics to make smarter investment decisions for innovation. Almost half of these leaders are directly investing in these capabilities.
AI investments are the norm for business leaders now, but how much return they’re getting from these investments varies.
Nearly two-thirds of retailers say that integrating AI and automation is one of the top areas where collaboration is essential in their business.
However, leaders are split on their exact objective when deploying AI. Over half (54%) say they’ll use it to reduce labor costs through automation, while the rest (46%) plan to use AI to improve productivity among employees.
Already, retailers are working to incorporate AI. Best Buy, Walmart, Lowe’s and Home Depot are among the companies investing in AI across multiple use cases in consumer-facing formats, from shopping tools to enhancements for search experiences.
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