Erroneous data, lack of trust hinder the integration of AI in the retail industry

A new study by Salesforce and the Retail AI Council of 1,400 decision makers in the retail industry pointed to a significant gap between enthusiasm for artificial intelligence and its implementation in the real world. The report notes that the results of AI in retail are less favorable, warning of trust gaps and the inaccuracy of AI-driven insights.

Flawed data strategies and trust issues are the main reasons behind the slow progress of AI in the retail industry

The report also highlights that generative AI will shape the future of retail with an estimated $9.2 trillion market by 2029. However, consumers remain skeptical of these technologies. In the study, only 13% of decision makers expressed confidence in the ethical use of AI, while 63% expressed concern about possible biases in AI-generated results.

“The AI ​​revolution is about data, trust and customer experience. Looking at AI in isolation, without understanding these elements as a package, will hurt a retailer’s ability to build loyalty and improve customer relationships,” said Rob Garf. He also said, “If you look at AI as a separate element, not as part of the same package… it’s very difficult to be a great retailer moving forward.”

Currently, 93% of retailers use artificial intelligence (AI) technology to personalize their customer experience, such as creating personalized emails or recommending products for sale.

Data cleansing, ethical use of AI, and data reconciliation issues are issues that need to be addressed

However, most companies are still only in the nascent stage of preparing data for effective use of AI systems, according to the survey. Only 17% say they have a complete picture of customer data, while data cleansing (39%) and reconciliation (42%) still have challenges.

As such, bridging the gap between strong data strategies and transparent ethical use of AI is critical for all retailers incorporating AI into their operations. Only if AI service providers succeed in solving these problems will organizations realize the transformative potential of this technology. In the respective industries, AI will open up multi-trillion dollar opportunities across retail channels.