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Craig Hale

Retailers are struggling with AI integration because of flawed data strategy and lack of trust

Machine Learning AI.

Retailers are facing challenges with generative AI due to a lack of a cohesive data strategy, new research has claimed.

An analysis of nearly 1,400 retail industry decision-makers by Salesforce and Retail AI Council revealed that real-world implementation and deployment of artificial intelligence don’t match the strong enthusiasm and demand for the technology.

Nearly half of those studied are battling with data accessibility issues, and only two in five (42%) have successfully bridged gaps between data silos, which Salesforce stresses threatens the effectiveness and accuracy of AI-driven insights.

Lay the data foundation before committing to AI, says report

Salesforce cites an external study to highlight the integral role that generative AI plays in the retail industry. By 2029, the technology is expected to have had a $9.2 trillion impact on the sector.

The study also notes customer sentiment surrounding generative AI, with only 13% being confident that companies will use it ethically. 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. 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.”

The industry sees GenAI playing a role in customer service, marketing, and store operations, with 93% of the current users benefitting from the technology’s ability to personalize results, including creating emails and suggesting products.

Looking ahead, Salesforce reaffirms that companies have a long way to go to prepare their data for effective AI deployment. Only 17% of companies boast a complete view of customer data, while data cleaning (39%) and harmonization (42%) continue to be problematic for many.

Looking ahead, it’s clear that bridging the gap between data strategy, ethical AI usage, and customer trust is imperative before the retail industry can really start to experience the multitrillion-dollar transformation.

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