Retailers struggle with AI integration due to a flawed data strategy and a lack of trust
According to a new one report by Salesforce and Retail AI Council, retailers are facing challenges with generative AI due to a lack of a cohesive data strategy.
The analysis of almost 1,400 decision makers in the retail sector shows that the implementation and use of artificial intelligence in practice does not match the strong enthusiasm and demand for the technology.
Nearly half of those surveyed struggle with data accessibility issues, and only two in five (42%) have successfully bridged the gap between data silos, which Salesforce believes threatens the effectiveness and accuracy of AI-driven insights.
Lay the data foundation before committing to AI, the report says
Salesforce cites an external study to highlight the integral role generative AI plays in retail. By 2029, the technology is expected to have had a $9.2 trillion impact on the industry.
The research also highlights customer sentiment around generative AI, with only 13% confident that companies will use it in an ethical way. Another two-thirds (63%) are concerned that AI will produce biased results.
Salesforce GM of Retail and Consumer Goods, Rob Garf, emphasized the importance of a holistic approach to AI implementation: “The AI revolution is about data, trust and customer experience. Viewing AI in isolation, without understanding these elements as a package, will harm a retailer’s ability to build loyalty and improve customer relationships.”
The industry sees GenAI playing a role in customer service, marketing and retail operations, with 93% of current users benefiting from the technology’s ability to personalize results, including creating emails and suggesting products.
Looking ahead, Salesforce reaffirms that companies still have a long way to go to prepare their data for effective AI implementation. Only 17% of companies have a complete view of customer data, while data cleansing (39%) and harmonization (42%) remain problematic for many.
Looking ahead, it’s clear that bridging the gap between data strategy, ethical AI use, and customer trust is imperative before retail can truly experience the multibillion-dollar transformation.