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 expertise, 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 purchasing 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 deal with probably the most urgent points in right now’s fast-paced, omnichannel atmosphere, reminiscent of streamlining return administration, automating customer support, and making certain product availability.

“We’re actually within the midst of a brand new period for the retail sector the place evolving AI capabilities will make a optimistic influence 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 workers.”

Honeywell’s survey findings reinforce the notion that AI isn’t just a technological development, but additionally a possible answer to the rising variety of job openings within the U.S. retail sector.

Retailers are leveraging AI to boost their workers’ expertise and job satisfaction, which might 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 might help workers progress extra rapidly of their careers, increase their gentle expertise 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 enhance job satisfaction. This aligns with the retail trade’s rising concentrate on how worker satisfaction can help the client expertise for his or her companies.

AI can also be taking part in an more and more necessary position in enhancing buyers’ buyer expertise, each on-line and in particular person. It can provide buyers higher entry to data, sooner transactions, and a neater approach to evaluate costs. Key findings from Honeywell’s survey of buyers included:

Two-thirds of surveyed shoppers (66%) reported utilizing AI whereas purchasing, 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 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 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 purchasing experiences, from focused suggestions and personalised gives to AI-driven chatbots offering on the spot buyer help.
Streamlined Operations: Retailers can leverage AI to optimise stock administration, predict demand, automate duties, and enhance provide chain effectivity, resulting in value financial savings and diminished waste.
Elevated Competitiveness: Retailers who embrace AI will achieve a major aggressive benefit by higher understanding buyer behaviour, anticipating market developments, and delivering superior service.

Nonetheless, this fast 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 long run.