Key findings
Cybersecurity is recognised as vital
However, preparedness varies among retailers. While universally acknowledged as important, as proved by 60% of retailers prioritising proactive measures, a substantial 40% are reactive, addressing issues only as they arise. Additionally, while 51% feel very prepared for data breaches, 49% feel less so, with 1% admitting minimal preparedness.
AI adoption is widespread - and expanding
AI is being rapidly adopted, with 61% of respondents exploring further AI applications after initial deployments. 39% are already using it for personalisation and inventory management. Key use cases include inventory optimisation (48%), checkout process improvements (46%) and fraud detection (42%). Generative AI is of particular interest
Challenges persist for advanced analytics
Despite widespread adoption of advanced analytics, significant data-related challenges remain. Data security and privacy (44%), data silos (37%), data governance (35%), data quality (34%), and data volume/variety (34%) are all cited as major concerns that need to be addressed.
Performance optimisation is a priority
But some lag behind. Retailers are prioritising online store performance, particularly during peak traffic. Reliance on hosting providers (58%) and CDNs/caching (47%) is common. However, while only 1% have not considered performance optimisation, 13% are experiencing slowdowns without implementing solutions.
Ethical AI implementation gains attention
Alongside AI adoption, there is a growing awareness of the need for ethical implementation. While concerns about algorithmic bias and fairness are less prevalent (17%), 22% expressed broader concerns about potential negative impacts, prompting discussions on risk management, responsible use, and incorporating diverse perspectives.
of respondents prioritise proactive measures when it comes to cybersecurity
"AI in retail isn't new; its increased accessibility is. An array of new tools over the last 12 months are empowering broader and quicker idea generation and accelerating solutions. AI enables "leapfrogs" on existing tasks, reducing weeks worth of work into potential hours. Successful retailers are leveraging AI to refine their unique competitive advantage on the ‘last mile’, and not necessarily for wholesale replacement."
Mak Mckenzie, Technical Director, guitarguitar
