80% of Retailers to Develop AI Use in 2025, Honeywell Analysis Finds

January 15, 2025

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Honeywell has launched the findings of its AI in Retail Survey, which discovered that greater than 8 out of 10 retailers plan to extend using automation and synthetic intelligence (AI) throughout their operations to adapt to altering shopper behaviours, improve worker abilities, and enhance buyers’ effectivity. Furthermore, thirty-five per cent of main retailers plan to extend their AI funding considerably.

Final-Revision-AI-Retail-Study-Infographics | World Branding Forum — Honeywell analysis finds each retailers and buyers seeing worth in AI to boost the buying expertise Picture supply Honeywell

In a latest AI-focused analysis initiative involving main U.S. retailers and vacation buyers, Honeywell found a rising development of AI adoption. Retailers are more and more turning to AI to sort out essentially the most urgent points in right this moment’s fast-paced, omnichannel atmosphere, equivalent to streamlining return administration, automating customer support, and making certain product availability.

“We’re really within the midst of a brand new period for the retail sector the place evolving AI capabilities will make a optimistic affect on the patron’s journey, the worker expertise and the retailer’s provide chain operation,” stated David Barker, president of Honeywell Productiveness Options and Providers. “On their journey towards autonomous operations, retailers are in search of AI and automation options that present actionable information and assist to upskill their staff.”

Honeywell’s survey findings reinforce the notion that AI is not only a technological development, but in addition a possible resolution to the rising variety of job openings within the U.S. retail sector.

Retailers are leveraging AI to boost their staff’ abilities and job satisfaction, which may assist fill the greater than 580,000 projected U.S. retail job openings this 12 months. Key findings included:

Greater than half of the surveyed retail leaders stated that AI considerably improves worker retention, and 52% imagine AI might help staff progress extra rapidly of their careers, develop their delicate abilities and repeatedly present worth to their jobs.
Greater than half (6 in 10) of retail executives stated that AI instruments considerably ease the job for workers, whereas 55% stated they enhance job satisfaction. This aligns with the retail trade’s rising deal with how worker satisfaction can help the shopper expertise for his or her companies.

AI can be enjoying an more and more necessary function in enhancing buyers’ buyer expertise, each on-line and in individual. It can provide buyers higher entry to data, sooner transactions, and a neater method to evaluate costs. Key findings from Honeywell’s survey of buyers included:

Two-thirds of surveyed shoppers (66%) reported utilizing AI whereas buying, whether or not to ask a query by way of a chatbot, evaluate costs for an merchandise throughout retailers or summarise buyer opinions.
Evaluating costs throughout shops is by far essentially the most sought-after use case for AI (53%), adopted by checking product availability (41%) and having a extra simple and seamless checkout expertise (34%).

The AI-Powered Way forward for Retail

The retail panorama is on the cusp of a major transformation. With over 80% of shops planning to extend their AI capabilities by 2025, the trade is poised for a surge in effectivity, personalisation, and buyer satisfaction.

Enhanced Buyer Experiences: AI-powered instruments will allow hyper-personalised buying experiences, from focused suggestions and personalised provides to AI-driven chatbots offering prompt buyer help.
Streamlined Operations: Retailers can leverage AI to optimise stock administration, predict demand, automate duties, and enhance provide chain effectivity, resulting in price financial savings and lowered waste.
Elevated Competitiveness: Retailers who embrace AI will achieve a major aggressive benefit by higher understanding buyer behaviour, anticipating market tendencies, and delivering superior service.

Nonetheless, this speedy AI adoption additionally presents challenges. Retailers should spend money on strong information infrastructure, guarantee information privateness and safety, and upskill their workforce to utilise AI applied sciences successfully. Those that efficiently navigate these challenges can be well-positioned to thrive within the more and more aggressive and data-driven retail atmosphere of the longer term.