Retailers are under increasing pressure to adopt artificial intelligence, but many are still struggling to turn investment into measurable business value, according to new research from HyperFinity.
The study of 200 retail decision-makers found that 91% of retailers feel either moderate or significant pressure to adopt AI in order to remain competitive. More than half (53%) described AI as one of the most important initiatives within their business, while 39% said competitor activity is influencing their AI roadmap.
The findings suggest AI has moved beyond experimentation and is now firmly established as a board-level priority across the retail sector.
However, despite widespread enthusiasm, many retailers remain uncertain about how to extract value from the technology.
Only 46% of respondents said they have a well-defined AI strategy supported by clear value cases. Meanwhile, 42% have identified potential AI use cases but remain unsure of the commercial benefits they will deliver.
HyperFinity says the findings point to a growing divide between retailers that are successfully operationalising AI and those still exploring its potential.
Skills and readiness concerns remain
The research also highlights concerns around organisational readiness for the next wave of AI adoption.
Just 27% of retailers said their teams are fully prepared for agentic AI deployment, while 25% described their workforce as only somewhat ready. A further 5% admitted they are not ready at all.
Thomas Hill, Co-Founder of HyperFinity, said:
“This research tells us that, as AI adoption accelerates, retailers face increasing pressure to develop the skills, governance frameworks and operating models needed to support long-term success.”
Retailers expect AI to play a greater role in decision making
The study found that retailers increasingly expect AI to move beyond analysis and begin influencing day-to-day business decisions.
More than four in five retailers (83%) believe AI will either lead decisions or automate them across retail operations within the next year.
Half (50%) expect AI to lead operational decisions while humans provide oversight and strategic direction, while 33% believe AI will automate most trading, customer and operational decisions with minimal human involvement.
However, attitudes towards automation vary significantly depending on role.
eCommerce Directors emerged as the most cautious group, with just 9% expecting AI to automate most decisions. By comparison, 42% of Chief Data Officers and 35% of Chief Customer Officers expect widespread automation of decision making.
“The conversation in retail has shifted dramatically over the past twelve months,” added Hill.
“Most retailers no longer need convincing that AI matters. The challenge now is building the capability to turn AI into measurable business outcomes.
“What we’re seeing is a growing divide between organisations experimenting with AI and those embedding it into their operating model. Success won’t come from deploying the most AI. It will come from having the strategy, governance and decision-making frameworks needed to create value from it.”
From automation to optimisation
While retailers see significant opportunities for automation, the research suggests the greatest value may come from improving decision quality rather than simply reducing manual effort.
Customer service (42%) and inventory and replenishment (37%) were identified as the business functions most likely to adopt agentic AI first, reflecting the technology’s ability to automate routine operational processes.
However, Hill believes the next phase of AI adoption will focus on optimisation rather than automation alone.
“AI is exceptionally good at automating repeatable operational processes, whether that’s customer service interactions, replenishment decisions or inventory management,” he said.
“But the bigger opportunity lies in helping retailers make better decisions.
“Areas such as pricing, loyalty, promotions and customer engagement still require commercial judgement and context. The future isn’t AI replacing people. It’s AI providing recommendations, insights and reasoning that help people make better decisions faster.”
