Retailers leveraging AI have reported increased productivity (33%) and significant cost savings (67%), making AI a critical tool for efficiency and profitability.
Artificial intelligence (AI) is no longer a futuristic concept in retail—it is delivering real financial returns today. According to a new report by KPMG International, Intelligent Retail: A Blueprint for Creating Value through AI-Driven Transformation, more than 55% of retailers report an AI-driven return on investment (ROI) exceeding 10%, with 21% seeing gains surpassing 30%. The report highlights how AI is reshaping the retail landscape by enhancing customer experiences, optimising operations, and driving innovation.
Retailers leveraging AI have reported increased productivity (33%) and significant cost savings (67%), making AI a critical tool for efficiency and profitability. Innovations such as AI-driven demand forecasting and automated supply chain management are enabling businesses to reduce waste and maximise margins.
AI is becoming an integral part of retail operations, with 56% of retailers having used AI for over three years. The trend shows no signs of slowing down—67% of retailers anticipate a significant increase in AI spending in the coming year, demonstrating a strong commitment to AI-powered growth.
From smart shopping carts to virtual influencers, AI-driven applications are revolutionising how customers shop. Nearly half (47%) of retailers credit AI for enabling the creation of new products and services tailored to evolving consumer preferences. Hyper-personalised shopping experiences powered by AI are setting new standards for customer engagement.
“Retailers who embed AI at the core of their strategy will not only enhance operational efficiency but also elevate customer experiences and set new industry benchmarks,” Puneet Mansukhani, Co-Lead Consumer & Retail and Head of Global Retail Digital Technology and Transformation at KPMG, India, said.
Despite AI’s potential, many retailers struggle with data integration. A striking 74% identify data management as a key challenge, while only 28% have achieved full system-level data integration. Just 7% have fully automated data processes, highlighting the need for improved infrastructure to scale AI effectively.
The report reveals that only 24% of retailers have a clear, long-term AI strategy. Industry experts emphasise that businesses embracing AI as a core part of their transformation strategy will not only stay competitive but also drive the future of retail innovation.
