Retailers plan major AI investments by 2025, Honeywell survey finds

Honeywell’s latest retail survey reveals that more than 80% of U.S. retailers are planning to increase their artificial intelligence adoption in 2025, with 35% planning significant expansions in AI investments.

Key findings and market trajectory: The retail sector is experiencing a fundamental shift as businesses integrate AI technologies to address operational challenges and enhance customer experiences.

• Major retailers are prioritizing AI and automation to adapt to changing consumer behaviors and streamline omni-channel operations
• The U.S. retail industry anticipates over 580,000 job openings in 2025, with AI playing a crucial role in workforce development
• Two-thirds of consumers report already using AI-powered features while shopping

Employee impact and workforce development: AI implementation is showing positive effects on workplace satisfaction and employee retention in the retail sector.

• More than half of retail leaders report improved employee retention through AI integration
• 52% of leaders observe AI helping employees advance their careers through skill enhancement
• 60% of executives note that AI tools simplify employee tasks, while 55% report increased job satisfaction

Consumer adoption and preferences: Shopping experiences are being transformed through AI-powered features that enhance convenience and decision-making.

• 53% of consumers use price comparison tools
• 41% of shoppers use AI to check product availability
• 34% benefit from AI-enhanced checkout experiences

Small business implications: While the survey focused on larger retailers, the findings highlight opportunities for smaller businesses to remain competitive through strategic AI adoption.

• Small retailers can implement scalable AI solutions like chatbots and automated inventory management
• Focus should be placed on addressing specific operational challenges with targeted AI solutions
• Cost-effective AI technologies can help smaller businesses compete in the evolving retail landscape

Future outlook: The retail sector’s widespread AI adoption signals a transformative period where success will increasingly depend on strategic technology integration, regardless of business size. The key will be finding the right balance between automation and human interaction while ensuring AI investments deliver measurable operational improvements and customer value.