Customers' Perceptions Overestimate Retailers' AI Implementation
In the ever-evolving world of retail, artificial intelligence (AI) is making a significant impact. A new focus study by IFH Foerderer, titled "Transformation Meets Innovation: Smart Retail and AI in Retail," explores the potential of AI in this sector.
The study reveals that only 5% of consumers believe no AI is used in retail. On the contrary, AI is being employed selectively, with comprehensive use seen in inventory management (53%) and logistics. Retailers are leveraging AI to automate tasks, optimize processes, and enhance efficiency, reducing manual work.
Consumers, however, are calling for transparency. At least two-thirds want clear communication about the use of AI in retail, including internal processes like process optimization, personnel, and logistics. The study also found that consumers are open to AI where it improves processes or enhances the customer experience, and they agree with recommendations or bonus programs.
Retailers are strategically communicating their AI use, focusing on applications with visible customer benefits. Tech-savvy, younger target groups, in particular, expect transparency regarding the use of AI in retail.
AI is also being considered for marketing & advertising (65%), consultation & customer service (62%), and fraud detection and security (60%) in retail. However, the study shows a gap between consumer expectations and actual use, indicating a need for retailers to bridge this divide.
Professor Werner Reinartz of Cologne University notes that many retailers do not anticipate disruptive changes from AI in the long term. Retailers are currently testing or preparing first steps in other areas. Acceptance of AI in retail varies depending on the application area.
Despite consumer preferences for human contact in certain situations, such as live chats or personally related processes, the potential for AI in retail is immense. AI can facilitate more efficient processes and personalized shopping experiences. The ongoing economic crisis in Germany has led 42% of consumers to postpone planned spending, highlighting the need for retailers to adapt and innovate.
In conclusion, while AI is making strides in retail, there is room for improvement in meeting consumer expectations. The integration of AI tools with human sales skills, as demonstrated at events like IMMOVISION 2025, offers a promising approach to optimizing lead qualification, sales automation, and customer trust building. As retailers continue to explore the possibilities of AI, they must prioritize transparency and ensure that AI is used to enhance, not replace, the human touch in retail.
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