Most retailers are struggling to their data available even as retailers globally are rapidly adopting generative AI to personalise and boost in-store and online shopping experiences.

A new report by Salesforce and the Retail AI Council shows that close to half of the 1,300 retailers surveyed are struggling to make their data accessible, and only 42 per cent are connecting their various data silos, which can result in ineffective or inaccurate AI outputs.

Generative AI will impact the retail sector by $9.2 trillion by 2029 as retailers adopt the tech to streamline operations, boost productivity and personalised experiences for shoppers.

According to the report, however, only 13 per cent of customers completely trust companies utilize AI ethically, and 63 per cent are concerned about bias in AI outputs.

Salesforce Director Solutions Engineering Africa, Linda Saunders challenged retailers to consider data, trust and customer experience when adopting AI to boost customer loyalty.

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“This research we’re announcing today aims to help retailers better understand the need for a unified data strategy, the practical applications of generative AI and how that can be used to enhance the experience for both shoppers and associates,” stated Saunders.

Most retailer across the globe are considering generative AI to enable them personalize and enhance service delivery to their customers from varied backgrounds.

Retail executives who were surveyed in the report estimate that 36 per cent of their employees are already using generative AI today, with that number set to rise to 45 per cent by the end of 2025.

The survey also shows 93 per cent of these retailers say they are already using generative AI for some kind of personalisation, such as personalised email copy and product recommendations.

Similarly, 81 per cent of respondents in the survey also reported having a dedicated budget for AI, with an average of 50 per cent of the said budget dedicated to generative AI.

According to the report, the top three areas where these retailers surveyed intend to use generative AI include customer service, marketing and store operations.

Retailers are giving priority to customer service use cases, with a desire to empower agents with highly personalised, automated messages and content to send to customers quickly.

The second most important use case for retailers, according to the report, is creating conversational digital shopping assistants to help shoppers find the right product or service.

However, many retailers are still grappling with how to unify all of their data to come up with a single view of their customers to unlock more effective generative AI outputs.

Only 17 per cent of respondents reported having a complete single view of their customers and effectively harnessing their data, while 49 per cent are still in the preliminary stages of building or even considering the creation of a complete customer data profile.

A retailer’s generative AI model could deliver inaccurate results which are laced with toxicity and biases due to their inability to harmonise and manage data.

As much as 67 per cent of retailers say they are fully able to capture customer data, only 39 per cent say they are able to clean that data, and 42 per cent are fully able to harmonise it.

40 per cent of retailers are also struggling to use the data in decision-making and 47 per cent struggle to make their data accessible hampering effective generative AI outputs.

When it comes to trust and ethics, 50 per cent of retailers surveyed indicated that they are able to fully comply with data security standards and regulations relating to data privacy.

Half of the retailers cite bias, when AI algorithms produce prejudiced results, as the biggest risk in using generative AI, followed by hallucinations (38 per cent) and toxicity (35 per cent).

“In today's retail landscape, AI isn't just changing the game; it's reshaping the entire playbook. It isn’t only a backstage assistant to merchants; it’s also the emerging co-star in the customer's shopping journey,” said Retail AI Council Vice Chair and CDO of Solo Brands Jenna Posner.

Posner added: “AI is now the imperative for anticipating needs, tailoring experiences, and transforming shopping from a transactional chore into a personalized and evolving adventure.”

The report is based on a double-anonymous survey which was done in December 2023 with 1,390 respondents interviewed from varied decision-makers across US, UK, Canada, France, Germany, Italy, Spain, and Australia.