A new monday.com report revealed that while 96% of retail leaders are adopting AI, most lack trust in the technology for key decisions.
Nearly two-thirds of retailers fear obsolescence without AI integration within two years, yet 61% are wary of AI-generated output quality.
Retailers cite data privacy, integration challenges, and high costs as major hurdles to AI adoption.
Currently, 55% of retailers use AI in customer service, but over half expect AI to handle most interactions within five years.
The industry is focusing on building trust and creating roles like Chief AI Officer to guide AI integration.
The retail industry is in a mad dash to adopt AI, but a new monday.com report reveals a deep-seated paradox: while 96% of leaders are already on board, most don't yet trust the technology with key decisions or the end-to-end customer journey.
The trust gap: Nearly two-thirds of retailers fear becoming obsolete if they don't integrate AI within two years, driving widespread adoption. Yet, 61% are simultaneously wary of the quality of AI-generated output, and nearly half insist that a human must still make the final call.
The usual suspects: The hesitation isn't baseless. Retail leaders point to a minefield of operational hurdles, with data privacy concerns topping the list at 47%, followed by the difficulty of integrating with existing systems, the potential to alienate customers, and high implementation costs.
The long game: For now, retailers are playing it safe, deploying AI mostly in customer service, where 55% use it for tasks like powering chatbots. However, the industry is betting on a very different future, with more than half of executives believing AI will handle most customer interactions within just five years.
The prevailing sentiment is clear: survival now depends on AI. But the real work isn't just flipping a switch; it's navigating the messy path toward building trust and making automation work alongside people. As retailers grapple with adoption, the conversation is expanding. Some are focused on the complex strategy of deploying a seamless "omnichannel" AI experience across chat, voice, and SMS. Others are creating new leadership roles like the Chief AI Officer to steer the transition, while major brands like Under Armour are already using the tech to address performance issues.
