Artificial intelligence is reshaping the retail industry at a rapid pace. From loss prevention and operational efficiency to personalized customer experiences, AI is now considered a must-have for all modern retail operations.
A recent survey by Everseen of 200 retail executives and over 1,000 consumers reveals both high ambitions and lingering gaps in perception between businesses and the public. There are six areas the survey highlighted that provide areas of growth for the retail industry.
Rapidly accelerating toward full AI deployment
Retailers are moving quickly to implement AI through their operations. The survey pointed out that 98% of retail executives expect to achieve full AI deployment within three years. Currently, only 3% have done so, but 23% anticipate reaching that milestone by the end of 2025, with another 58% following by 2026.
AI is expanding into multiple retail functions as seen from the following survey stats:
- 60% of retailers have already implemented AI for loss prevention.
- 48% use predictive analytics for inventory management.
- 48% have deployed automated or cashier-less checkout systems.
- 42% use chatbots and virtual assistants.
Retailers are not only optimistic about integration but also confident in achieving ROI. Nearly half of executives expect AI to generate a 21–50% return within three years. Performance indicators include theft reduction, improved customer satisfaction, operational cost savings, and increased staff productivity.
Cost pressures and smarter shopping habits
Consumers are adapting their behavior in response to broader economic pressures. Over 90% report altering their spending habits due to rising prices, with groceries, medication, and household goods cited as top areas causing the most concern.
Many consumers are beginning to recognize the role of AI in making their shopping experience more efficient, including faster checkout times (44%), better product availability (43%) and personalized services (24%). Consumers also see potential for AI to address pain points that include reducing theft (45%) and enhancing inventory accuracy (40%).
Public comfort with AI and its limits
Public comfort with AI in stores is growing, especially when privacy concerns are addressed. Around 68% of consumers report feeling comfortable with AI in retail environments, provided it does not collect or store personal or identifying data.
Comfort levels are highest among younger age groups (ages 25–34), but a majority of consumers over 55 also express openness to the technology. Frequent users of smart carts, digital kiosks, and camera-enabled checkouts tend to be more familiar and engaged with AI-enhanced shopping environments.
Despite this, a clear gap remains between retailers' and consumers' understanding of AI's presence. While 80% of retail executives believe customers understand how AI is used in stores, only 31% think this understanding is complete. This mismatch points to a need for clearer communication and is an opportunity for retailers.
Loss prevention as a driving force
Retail theft — whether accidental or deliberate — continues to be a key motivator for AI adoption. Consumers and retailers alike acknowledge its impact on pricing and store operations. While 85% of consumers believe theft increases prices, retailers report more conservative estimates, with 43% linking it to higher costs and 42% citing its potential to trigger store closures.
AI is increasingly seen as an effective solution. Nearly two-thirds of consumers are aware of its role in theft detection, and a majority believe that tools such as product recognition at checkout can help mitigate losses.
Retailers are dedicating substantial resources to this area:
- Nearly half allocate 5–10% of their annual budget to loss prevention.
- Another 48% allocate 11–20%.
- The average share of budget directed to shrink prevention is 11%.
There are still challenges. Retailers cite difficulties in validating vendors' claims, ensuring privacy compliance, and managing integration costs and internal buy-in. These barriers underscore the importance of experience and scale in deploying effective solutions.
Trust hinges on transparency
While AI adoption grows, so does consumer concern about how it's used. Transparency emerges as a critical factor in public trust. Seventy-four percent of consumers say they want to be informed when vision AI is being used in-store, and 72% believe AI should be more transparent across all retail sectors.
Methods of communication that consumers find most helpful include:
- Signage at store entrances (64%).
- Notifications at self-checkout (50%).
- In-aisle signage (44%).
Notably, fewer consumers seek this information from corporate websites, suggesting that in-person disclosure is more effective.
Failure to communicate clearly can have reputational costs. Nearly one in four consumers say discovering that a retailer uses AI without disclosure would make them hesitant to shop there again. An additional 17% would stop shopping at that store entirely.
What's ahead for AI and retail
AI is transitioning from experimental pilot projects to full-scale deployment. Beyond its current uses in loss prevention and checkout optimization, AI is poised to play larger roles in enhancing inventory management and supply chains, improving workplace safety, refining store layouts and customer navigation, and supporting more dynamic pricing and promotion strategies.
Retailers who move beyond isolated use cases and integrate AI holistically across their operations are likely to see the most value—both in terms of operational gains and customer experience improvements.
AI is no longer an emerging technology in the retail sector — it's a central part of the industry's transformation. While enthusiasm for its potential is high on both sides of the checkout counter, achieving meaningful results depends on transparency, trust, and the ability to scale thoughtfully.
As the sector evolves, the balance between innovation and public acceptance will determine how effectively AI reshapes the future of retail. There's still more for the industry to do.