Retailers racing to deploy AI while shoppers demand transparency

Time was when “auto mall” universally meant a veritable mall for automobiles. But it’s transforming into a term for the automated mall experience, with both shoppers and merchants expecting to contend with AI in some form or another.

A significant gap exists between retail customers and businesses regarding in-store AI implementation, though both groups recognize its potential benefits. The new Everseen survey reveals that while 65% of shoppers believe AI enhances retail convenience, 63% of retail managers view AI deployment as a competitive necessity. This alignment around AI’s value comes as retailers accelerate adoption plans while navigating implementation challenges and growing consumer demands for transparency about how this technology is being used in physical stores.

The big picture: Retailers are rapidly embracing AI with 98% planning full deployment within three years, driven primarily by loss prevention needs and competitive pressures.

• Currently, only 3% of retailers have achieved full AI deployment, but 23% expect complete implementation by the end of 2025.
• The majority (56%) anticipate full deployment in 2026, while 17% project completion by 2027.

Key drivers: Loss prevention stands as the primary motivation for retail AI implementation, with 60% of retailers already using AI to combat theft.

• Nearly three-quarters (74%) of consumers acknowledge the connection between shoplifting and store closures.
• A significant 59% of shoppers believe AI technologies like product recognition at checkout can effectively reduce theft.

Expected benefits: Retailers and consumers see different but complementary advantages from in-store AI implementation.

• Retailers prioritize improved customer service and enhanced store layout optimization.
• Consumers value faster checkouts, better inventory management, and more personalized shopping experiences.

Implementation challenges: Retailers face several significant hurdles as they roll out AI technologies across their operations.

• Training personnel tops the list of concerns (47%), followed closely by gaining customer trust (46%).
• Technical challenges include integrating AI with existing systems (44%) and managing implementation costs (39%).

Financial expectations: Nearly half of retailers anticipate substantial returns from their AI investments.

• 48% of retail executives expect AI to deliver between 21% and 50% ROI over the first three years.
• Key performance indicators include customer satisfaction scores (41%), reduction in theft (41%), lower operational costs (39%), and enhanced employee efficiency (30%).

Consumer demands: Transparency about AI usage has emerged as a critical concern for shoppers.

• 74% of consumers want retailers to disclose when vision AI is being used in stores.
• 72% are calling for greater transparency regarding in-store AI deployment.
• Preferred disclosure methods include signage at store entrances, pop-up notifications at self-checkout, aisle signage, and website information.