More than 80% of Retailers To Increase AI Capabilities in 2025

More than eight out of 10 retailers plan to increase their use of automation and artificial intelligence (AI) across its operations to adapt to changing consumer behaviors, enhance employee skills and improve efficiency for shoppers, per a new AI in Retail Survey conducted by Honeywell.

Honeywell commissioned Wakefield Research to conduct the Honeywell Retail Executives Survey and the Honeywell Retail Consumers Survey. These were Omnibus surveys polling individuals from Dec. 2-8, 2024 using an email invitation and online survey format. The Retail Executives Survey polled 100 US executives with a minimum seniority of vice president at retail companies with a minimum annual revenue of $100 million. The Retail Consumers Survey polled 1,000 nationally representative US adults ages 18+.

The survey showed that 35% of major retailers plan to significantly increase their AI investment.

In new AI-focused research with large US retailers and holiday shoppers, Honeywell found that retailers are increasingly investing in AI to address the biggest pain points they face in today’s fast-paced, omni-channel climate, including improved return management, automating customer service and monitoring product availability.

“We are truly in the midst of a new era for the retail sector where evolving AI capabilities will make a positive impact on the shopper’s journey, the employee experience and the retailer’s supply chain operation,” said David Barker, president of Honeywell Productivity Solutions and Services. “On their journey toward autonomous operations, retailers are looking for AI and automation solutions that provide actionable data and help to upskill their employees.”

Honeywell’s survey reinforced that retailers are using AI to enhance employees’ skills and improve their on-the-job experience, which could ultimately help fill the more than 580,000 projected US retail job openings this year.

Key Findings

More than half of the surveyed retail leaders said that AI improves employee retention, and 52% believe AI can help employees progress more quickly in their careers, expand their soft skills and continuously provide value to their jobs.

More than half (six in 10) of retail executives said that AI tools make the job easier for employees, while 55% said they increase job satisfaction. Analysts say this aligns with the retail industry’s increasing focus on how employee satisfaction can support the customer experience for their businesses.

AI is also playing an increasingly role in improving the customer experience for shoppers, both when shopping online and in person. It can provide shoppers better access to information, speedier transactions as well as an easier way to compare prices. Key findings from Honeywell’s survey of shoppers included:

Two-thirds of surveyed consumers (66%) reported that they have used AI while shopping, whether to ask a question via a chat bot, compare prices for an item across retailers or summarize customer reviews.

Comparing prices across stores is the most sought-after use case for AI (53%) followed by checking product availability (41%) and having a simpler and more seamless checkout experience (34%).