Nearly 70% of retailers in North America recognize the critical role of artificial intelligence (AI) in improving the customer experience and driving productivity, according to a recent study conducted by Forrester Consulting on behalf of Epicor, a global enterprise software leader. However, data and organizational challenges are preventing many retailers from fully embracing AI.
The study, titled AI Will Transform Retail – But Success Hinges On Tech, Data, And Process, surveyed 205 business and IT decision-makers from major retail organizations. The key findings revealed that while most retailers understand the potential benefits of AI, they are still in the early stages of implementation. Only 34% of respondents reported utilizing advanced AI in spend management, while processes like receiving and sales, and operation planning, saw less than 20% usage.
Data collection and quality were identified as major hurdles in AI implementation, with 77% of respondents struggling to derive actionable insights from the collected data. Additionally, 67% reported an inability to collect usable data for better business insights. Overcoming data silos and ensuring data integrity were cited as the top challenges for AI implementation.
The study also highlighted the strong desire among retailers for an AI-powered retail management system. Nearly 70% of respondents believed that such a system could significantly impact customer processes, supply chain management, demand forecasting, and inventory management.
Marco de Vries, Vice President of Product Marketing at Epicor, emphasized the need for retailers to address underlying data quality and collection issues to unlock the value of AI. He noted that AI could help automate operations and provide actionable insights for demand forecasting and inventory management.
However, the study revealed that many retail leaders feel they need more education on AI solutions, with 70% desiring further knowledge. Furthermore, 65% expressed difficulty in keeping up with new AI technologies, and nearly 60% cited complexities in investing in these technologies, including training staff, managing opposition, and overcoming resistance to change within their organizations.
To address these challenges and explore best practices in adopting AI technologies, Epicor will host a live webinar on January 17, 2024, featuring industry experts who will review the survey findings.
In conclusion, while the majority of retailers recognize the critical role of AI in enhancing customer experiences and boosting productivity, data and organizational challenges are preventing them from fully embracing this transformative technology. Overcoming these obstacles, including data collection and quality issues, educating staff, and managing resistance to change, will be key in fostering the successful implementation of AI in the retail industry.
