How AI in Retail Enhances Shopping and Store Efficiency

Artificial intelligence (AI) is transforming the retail landscape, creating value for shoppers and retailers, according to a new SPAR Group survey. The report highlights how AI in retail enhances customer experiences, streamlines store operations, and drives innovation across the industry.

Consumers Seek Convenience

The survey found that nearly 70% of consumers are familiar with AI’s use in retail settings, with over half holding a positive impression of the technology.

Shoppers are particularly drawn to applications that provide value and convenience, including:

  • Personalized in-store coupons.
  • Real-time product information.
  • Non-stop checkout systems.
  • In-store digital assistants.

“Retailers still need to better communicate AI’s benefits, but both consumers and merchants are moving toward an enhanced shopping and working experience that will drive industry growth,” said Mike Matacunas, CEO and president of SPAR Group.

Retailers Report Operational Gains from AI in Retail

Retailers expressed even greater enthusiasm for AI, with 95-100% agreeing that AI in retail improves store operations, inventory management, and customer engagement.

Key benefits include:

  • Improved efficiency in stocking and inventory management.
  • Enhanced customer service through tailored solutions.
  • Reduced costs by minimizing human overhead.

“Retailers are leveraging AI to reduce stock-outs and improve customer satisfaction, helping them stay competitive in a fast-changing market,” Matacunas added.

Younger Shoppers Drive AI Adoption

The survey revealed that younger consumers aged 18 to 54 are more familiar with and satisfied with AI-driven tools. They particularly favor personalized shopping lists and digital assistants to enhance convenience.

In contrast, older shoppers (55+) are more cautious, voicing concerns over privacy and transparency. However, they appreciate AI features that improve accessibility and provide product information.

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Key Findings: AI in Retail Delivers Results

The SPAR Group survey highlights several insights on the transformative power of AI in retail:

  • 95-100% of retailers report positive impacts on efficiency, stocking, and cost reduction.
  • 45-55% of consumers view most AI applications favorably, with digital assistants and personalized tools receiving the most support.
  • Younger shoppers are leading adoption, while older customers are cautiously optimistic.

Unlocking the Future of AI in Retail

The analysis suggests retailers should prioritize AI in retail applications that directly address consumer needs and create a competitive edge.

Tools that reduce stock-outs, provide precise product details, and make shopping more seamless are key to success.

“All customers want smarter shopping experiences,” Matacunas noted. “By investing in AI in retail, retailers can meet consumer demands while differentiating themselves in the marketplace.”