The latest report from Berkeley Research Group finds that over 80% of retailers have integrated artificial intelligence into their operations to at least a moderate degree. Many are already using AI for marketing (about 70%), IT or digital operations (62%), digital commerce (56%), and merchandising strategy or pricing (54%). Looking ahead, they plan to expand AI into planning and product flow, supply-chain and sourcing, operations, and logistics.
That said, the report cautions that deploying AI doesn’t automatically yield meaningful business impact. Tasks like auto-generating product descriptions or marketing copy (e.g. through generative-AI tools) may reduce manual effort — but it’s not yet clear whether such efficiencies consistently translate into significant gains in revenue, customer retention, or other tangible KPIs.
Some major retailers are already experimenting in concrete ways. For example, Sam's Club uses an AI-powered “Scan & Go” smartphone app in many stores to simplify checkout and in-store purchasing. Another, Walmart, has rolled out an AI framework — including specialized “agents” for customer-facing tasks, supplier operations, store associates and internal developers — to streamline various facets of retail operations. And Target is using generative AI to assist its merchants and to evaluate vendors for its third-party marketplace platform.
The broader insight: For AI initiatives in retail to succeed, companies need a clear, well-defined business model and roadmap — not just technology deployment. The report recommends that retailers define specific use cases, set clear performance metrics (e.g. average order value, inventory turnover, customer retention, labor efficiency), and run pilots before wide-scale roll-out. Without such strategy, AI risks being just another costly experiment rather than a value driver.
