Nearly half (45%) of retailers are already using AI daily or several times a week and almost all (97%) plan to maintain or increase their investment in AI this year, according to a new report. However, only 11% say they will deploy AI tools at scale.
When it comes to customer retention, nearly two-thirds (63%) of retailers believe that AI will improve loyalty and a similar amount (65%) expect it to increase customer lifetime value. However, the report found that only 43% are currently using AI in customer-facing applications such as personalisation, chatbots or tailored marketing experiences. Only 23% are using it in production to resolve customer identities or prepare data for marketing use.
Barriers to adoption
The report revealed a number of barriers to AI adoption in retail. Data fragmentation is a major challenge, with more than half (58%) of respondents saying their customer data is fragmented or incomplete. Cost is also an issue, with 46% citing high costs of AI tools as a top challenge. More than a third (35%) said they had limited technical expertise and only one in five (21%) are “very confident” in their ability to understand and act on customer data.
The 2025 State of AI in Retail Report from Amperity surveyed 1,000 retail professionals across marketing, IT, data and executive leadership.
“This survey highlights a pivotal shift in retail,” said Tapan Patel, research director at IDC. “Retailers who integrate AI into core workflow – across supply chain, merchandising, and engagement – are setting the new standards for customer experience in an increasingly dynamic market.”
Earlier this week, Debenhams Group revealed it was rolling out AI training to all its staff.
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