Retailers’ are planning to dramatically increase their artificial intelligence (AI) deployment as consumers become more comfortable with the technology as it continues to be accepted as an everyday part of life, according to a new report from Everseen.
The report released Feb, 25 titled Everseen Insights: The Future of AI in Retail details retailers’ plans for AI deployments alongside the critical need for transparency and consumer trust. The report is based on a survey of 200 loss prevention retail executives and more than 1,000 U.S. consumers.
The topline findings is that nearly two-thirds (63 percent) of retailers say AI is critical to maintaining a competitive edge, and expect an average 51 percent return on investment from AI deployments within the first three years. At the same time, 55 percent of consumers are comfortable with AI and advanced retail technology, and nearly two-thirds say AI makes shopping more convenient.
AI Transforming Retail
Alan O’Herlihy, CEO of Everseen, stated the report shows that AI is already transforming retail by driving efficiency, reducing shrink, and enhancing customer experiences.
“The insights from this report can help the industry align on key success factors for AI, including measurable impacts on shrink reduction and the importance of transparency,” said O’Herlihy is a statement released with the report.
Combatting Loss Prevention
A common concern for retailers and consumes they see as AI being an answer for is loss prevention—85 percent of consumers believe theft contributes to higher prices. Additionally, 74 percent believe theft leads to store closures, and 59 percent see AI technology, such as product recognition at checkout, helping reduce crime.
Retailers are attempting to meet these concerns, the report found 60 percent of retailers having implemented AI with another 30 percent planning to do so within the next year.
The top AI benefits cited by retailers include customer service and support as well as improved store layout and navigation, both at 31 percent. For consumers, AI improving their experience through faster checkouts (44 percent), better inventory management (43 percent), and more personalized shopping (24 percent).
Transparency and Implementation
Challenges continue to remain with AI implementation—47 percent of retailers cite time and resources for training, 46 percent customer acceptance and trust, and 44 percent integration with existing systems as key hurdles.
One area that consumers and retailers agree on is transparency is critical as the adoption of AI increases. Seventy two percent of consumers want greater transparency about AI use in grocery and retail stores and half cite self-checkout pop-ups as effective. Retailers are already using multiple disclosure methods, including 44 percent employing signage at entrances, which 64 percent of consumers find helpful.
O’Herlihy commented that AI is already transforming retail by driving efficiency, reducing shrink, and enhancing customer experiences.
“It’s encouraging to see the shared perspective of consumers and retailers on how AI can improve the shopping experience,” he said.