Is AI a tech priority for retailers?

Artificial intelligence (AI) certainly seems to be a tech priority for most retailers in the region.

Since the popular belief is that data doesn’t lie, starting with some numbers. At a time when 91% of retail IT leaders are prioritising AI as the top technology to implement by 2026, AI services in the retail industry are expected to touch the $31-billion-mark by 2028.

Besides ensuring operational efficiency and enhancing the ability to personalise experiences and communications, AI has the potential to help businesses combat volatility related to supply chain through accurate demand forecasting. This, in turn, helps to reduce returns and wastage therein having a positive impact on a retail organisation’s sustainability centric goals.

Do ground realities align with data?

Understandably, there are many benefits of adopting AI-based tools and services, but are ground realties supporting data?

The short answer is yes.

Take the example of Samsung that has been playing a pioneering role in bringing AI experiences to mainstream devices through its Galaxy AI platform. Through the integration of Generative AI (GenAI) assistants, Samsung mobile devices are enabling creative and personalised experiences. For instance, ‘AI Photo Assist’ enables users to produce professional-quality visuals directly from their mobile devices, while ‘Live Translate’ delivers seamless real-time translation during phone calls.

“We have also made remarkable progress in integrating AI into the SmartThings platform, revolutionising how users interact with their home appliances and devices,” added Fadi Abu Shamat, Head of Mobile eXperience Division, Samsung Gulf Electronics. “In the coming months and beyond, our R&D and product teams are exploring new ways to harness the power of AI to deliver a more personalised, efficient, secure and intuitive user experience across all device and appliance touchpoints.”

The consumer electronics and retail sectors are rapidly evolving with the integration of advanced technologies such AI, augmented reality (AR), virtual reality (VR), internet of things (IoT), blockchain, 5G, robotics, sustainable technologies and quantum computing. These innovations are not only enhancing customer experiences but also driving operational efficiencies and sustainability efforts, opined Sumit Roy, CIO, Jumbo Electronics Ltd.

In agreement is Kartik Bhatt, CDO, Modern Electronics (Sony, PlayStation, Panasonic, Hitachi). According to him, some “cool and impactful tech innovations” include use of AI in e-commerce to create hyperpersonalised user experience (UX); IoT making inroads into the consumer space; and realistic use of AR and VR in e-commerce.

Jacky’s Group too plans to leverage advanced AI capabilities within its business. In this context, Ashish Panjabi, COO, Jacky’s Retail shared, “In 2025, we plan to invest in new devices equipped with advanced AI capabilities, such as the recently announced Microsoft Surface Copilot PCs. These devices require enhanced NPU power, necessitating an upgrade of our existing laptops and PCs. This investment will enable us to leverage these powerful AI tools fully, enhancing our operational efficiency and overall business performance.”

A quick look at barriers

While AI-based transformation features high on retail tech leaders’ agenda, are they faced with barriers to adoption – be that return on investment (ROI), data privacy and the ethics of AI, among others?

“Consumer data privacy concerns have emerged as a significant barrier to technology adoption, especially in the context of AI usage,” Shamat admitted. “To address this, Samsung has implemented a multifaceted approach prioritising user choice backed by robust security measures.”

Pointing towards the ROI aspect, Panjabi said that the main challenge isn’t a barrier per se, but the uncertainty regarding the payback period on new investments. “While we’re adopting a SaaS model, the organisational changes and retraining required for each new system are substantial. This constant need for adaptation can be a significant obstacle.”

“Re-engineering our concepts, thoughts and processes to the ever-changing tech-driven environment, while comprehending and visualising the opportunities presented by new and emerging tech capabilities is often a challenge,” Roy added.

In summation, Bhatt stated process stabilisation & inter-functional synchronisation as well as learning & adoption as some barriers to tech adoption.