Dramatic Growth of AI in Retail: Is It Going to Hold?

AI penetrates many industries and in retail, it displays one of the highest increase. Capgemini Research Institute mentions a seven times increase in AI use compared to 2016. Despite the growth in implementing AI, in fact, only one percent of retailers manage to scale it across the market chain.

The prospects for AI scalability show a $300 billion earnings even at existing stores without any other growth. Throughout the world, UK leads the implementation of AI where 39 percent use AI, next is Germany with 29 percent AI applications followed by the US 25 percent. More than two-thirds of online retailers have already introduced AI capabilities outpacing the traditional stores which only currently see 30% introduction of the new AI wave.

Since its more relevant introduction in 2016, AI has performed notable impact which paves the way for further developments. Let us examine some benefits and upon those, we can gain insight into its evolution.



  • Following notable benefits mentioned by retailers across the world who use AI:
  • Decrease customer complaints in 96 percent of cases in the UK, and same retailers made more sales of products and services.
  • Job creation at 71 percent of retailers more than half of these jobs are senior level
  • Very few job losses and some of the retailers who implemented AI have seen zero job loss.
  • Shelf gap declined by 30 percent for seasonal merchandise


Further Developments

Capgemini Research states that retailers could save $300 billion with proper scaling of AI applications across their products chain. The implementation of AI needs to take into consideration ROI, the complexity and the timeliness of projects.

While disregarding the ROI the retailers continue to defer the use of AI thus losing important resources including cash. Some of the causes of the limited AI presence is due to these obvious facts:

Concentrating attention on complex, time and resource consuming projects instead of those easier to complete and scale

No particular intense interest in developing and introducing AI applications for customer usability because research for AI used for customer satisfaction shows retailers put thisa on lower priority, for instance, optimization of supply chain routes.

Increasing efficiency significantly with AI in a changed super-productive supply chain

More company awareness in implementing AI evaluating diligently:

  • Available skills
  • Quality of data
  • Feasible plan

The company current abilities, data ecosystem and plans and goals to fulfill for a successful AI implementation are equally important. The technology progresses along with its use becoming more reliable, complex and mature. Certain aspects prove obvious: without taking into consideration the aspects related to customer satisfaction and without resolving present issues related to it, the push for a dramatic increase in sales and earnings seems pointless.

Author: Cory Popescu