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 the usage of automation and synthetic intelligence (AI) throughout their operations to adapt to altering client behaviours, improve worker abilities, and enhance consumers’ 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 consumers seeing worth in AI to boost the purchasing expertise Picture supply Honeywell

In a latest AI-focused analysis initiative involving main U.S. retailers and vacation consumers, Honeywell found a rising pattern of AI adoption. Retailers are more and more turning to AI to sort out probably the most urgent points in as we speak’s fast-paced, omnichannel atmosphere, equivalent to streamlining return administration, automating customer support, and guaranteeing 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 impression on the consumer’s journey, the worker expertise and the retailer’s provide chain operation,” mentioned David Barker, president of Honeywell Productiveness Options and Providers. “On their journey towards autonomous operations, retailers are on the lookout for AI and automation options that present actionable information and assist to upskill their staff.”

Honeywell’s survey findings reinforce the notion that AI isn’t just a technological development, but in addition a possible answer 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 mentioned that AI considerably improves worker retention, and 52% consider AI can assist staff progress extra shortly of their careers, develop their smooth abilities and constantly present worth to their jobs.
Greater than half (6 in 10) of retail executives mentioned that AI instruments considerably ease the job for workers, whereas 55% mentioned they improve job satisfaction. This aligns with the retail business’s growing deal with how worker satisfaction can help the client expertise for his or her companies.

AI can also be enjoying an more and more necessary position in bettering consumers’ buyer expertise, each on-line and in individual. It can provide consumers higher entry to data, quicker transactions, and a neater technique to examine costs. Key findings from Honeywell’s survey of consumers included:

Two-thirds of surveyed shoppers (66%) reported utilizing AI whereas purchasing, whether or not to ask a query by way of a chatbot, examine costs for an merchandise throughout retailers or summarise buyer critiques.
Evaluating costs throughout shops is by far probably 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 big transformation. With over 80% of outlets planning to extend their AI capabilities by 2025, the business is poised for a surge in effectivity, personalisation, and buyer satisfaction.

Enhanced Buyer Experiences: AI-powered instruments will allow hyper-personalised purchasing experiences, from focused suggestions and personalised presents to AI-driven chatbots offering instantaneous 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 diminished waste.
Elevated Competitiveness: Retailers who embrace AI will acquire a big aggressive benefit by higher understanding buyer behaviour, anticipating market traits, and delivering superior service.

Nonetheless, this speedy AI adoption additionally presents challenges. Retailers should put money into sturdy 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.