Nearly six in ten retailers plan to adopt artificial intelligence (AI), machine learning (ML) and computer vision (CV) over the next year, according to a survey by Honeywell.

The goal is to enhance the shopping experience offered within stores and online. The research also indicates that retailers see this technology as complementing and enhancing their workforce and not eliminating jobs.

Honeywell’s AI in Retail survey involved some 1000 retail directors across the USA, Europe, Middle East and Africa in leadership roles, including IT, operations and customer experience. Some of the findings about the state of AI, ML and CV technologies today include:

• 38% of those surveyed are using these technologies for select use cases or regions
• 35% are using them on a larger scale
• 24% are in a pilot phase or in discussions
• Only 3% said they were not using these technologies at all

Nearly half (48%) of respondents identified AI, ML and CV as the top technologies expected to have a significant impact on the retail industry over the next three to five years.

“In today’s retail environment, there is greater attention on the customer experience along with increased need to innovate in a hyper-competitive environment,” said George Koutsaftes, CEO of Honeywell’s safety and productivity division. “New technologies like AI, ML and CV have the potential to enable retailers to deliver personalised experiences, optimise operations, improve inventory management and prevent fraud, all of which enhance customer satisfaction and can lead to increased sales and profitability.”

The convenience of online purchasing with fast delivery and curated in-store shopping options have raised consumers’ expectations. Surveyed retailers said they were highly motivated to implement new technologies that helped them achieve their goals. The top three reasons leaders gave for deploying new technologies were improving customer experience (59%), driving greater productivity (49%), and achieving cost efficiencies or return on investment (44%).

Survey respondents predict that AI, ML and CV will bring the greatest value to four key functions in retail: automating and supporting day-to-day tasks, such as picking and scheduling; supporting customer service, including live chat, for digital channels; creating targeted customer marketing campaigns; and improving inventory management.

Study findings suggest most retailers see AI, ML and CV primarily as tools to augment and increase their workforce, rather than to replace employees. Only 7% of those surveyed said their primary purpose would be to reduce human labour. The technologies can enable better use of the workforce through predictive analytics, which can lead, in turn, to improved job satisfaction and more time to focus on higher-value tasks.

Despite the large potential impact of the technologies, the survey data indicate three primary barriers to widespread adoption: budget restrictions (39%); difficulty in demonstrating business value (29%); and lack of internal expertise to maintain the technology (21%).

“The importance of attracting and keeping customers and employees has never been greater,” said Koutsaftes. “As AI continues to evolve, expect an exciting future where innovative technologies unlock new levels of efficiency, engagement and satisfaction in retail.”

The survey was commissioned by Honeywell and conducted by market research company OnePoll. Data were collected in April 2023.

To read more about the survey results, please visit sps.honeywell.com/us/en/industries/retail.