Retailers are rapidly adopting artificial intelligence, many are overestimating the tangible business impact of these tools, according to the AI in Retail: In Pursuit of Meaningful AI Adoption report from consulting firm Berkeley Research Group (BRG).

Why it matters: The gap between high adoption rates and limited business results suggests many retailers are investing in AI without a clear strategy for generating value or managing risks. This creates a significant opportunity for consultants to guide clients on effective implementation and operational alignment.

By the numbers: The survey of retail executives in North America found:

  • 48% say AI is active in most of their organization's core functions, primarily in marketing, IT, and digital commerce
  • Generative AI implementation is currently outpacing predictive and agentic AI
  • Only about 50% believe their AI policies are comprehensive and adaptable to regulatory changes
  • Major policy gaps exist around workforce impact (47%), transparency (43%), and intellectual property (29%)
The big picture: While AI is widely viewed as a critical technology for the retail industry, the report indicates that successful implementation is more complex than simply deploying new tools. The desired outcomes—operational agility, cost savings, and improved customer experience—remain elusive for many.

  • "The real return on investment from these tools isn't only in the capabilities added via AI—but in what it allows them to stop doing," said Murali Gokki, a managing director at BRG.
  • He added that organizations need to embed AI into a defined operating model, establish strong data governance, and adopt new metrics to measure impact.
Between the lines: The survey reveals a significant risk management shortfall. With a rapidly changing regulatory landscape, the lack of comprehensive policies covering issues like workforce impact, data transparency, and IP could expose companies to significant compliance and reputational risks.

Zoom out: AI adoption and policy confidence are even lower among corporate leaders in Europe and Asia-Pacific compared to their North American counterparts, according to the report. This points to a global challenge in translating AI investment into meaningful business outcomes.

"Executives need to remain hyperfocused on leveraging AI for tangible business impacts and ensure implementation doesn't falter due to poor infrastructure, data quality or operational misalignment," said Ryan Poole, another BRG managing director.

The AI in Retail: In Pursuit of Meaningful AI Adoption report may be viewed here.

SOURCE: BRG

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