AI Gives Retailers a Competitive Edge and Powers Personalization, Raydiant Survey Finds
April 16 2024 - 3:11PM
Raydiant, the leading in-location Experience OS for retailers,
today announced the findings from its first annual “The State of AI
in Retail.”
Drawing from a survey of 172 retail
technology leaders, the report explores the adoption and impact of
artificial intelligence in retail, with a focus on competitive
advantages, operational efficiency, and the different use cases
retailers are experimenting with.
Commenting on the findings, Bobby
Marhamat, CEO of Raydiant, said: “AI has arrived, and it's critical
for retailers to get ahead of the curve. Consumers are increasingly
seeking out enriched, personalized shopping experiences, and AI
stands as the most effective tool for delivering these experiences
at scale. Our findings highlight AI's profound impact across
retail, underscoring the necessity for retailers to leverage AI not
just as a technological advantage, but as a fundamental expectation
of modern consumers.”
Key Insights from the
Report:
- Competitive Edge through AI: 76% of
retail leaders believe that AI can offer a substantial competitive
advantage to businesses that embrace it.
- Personalization at the Forefront: Retailers are capitalizing on
AI to enhance personalization, with 57% using it for customer
behavior analysis and 47% for chatbots and customer service
automation. This focus on tailored experiences—from product
recommendations to dynamic interactions—showcases AI's role in
delivering more personalized and engaging customer journeys.
- Operational Efficiency and Customer Experience: The primary
drivers behind AI adoption include the enhancement of customer
experience, cited by 72% of respondents, and the quest for
operational excellence.
- Navigating Challenges: Retail
leaders face several hurdles in AI adoption, with the top
challenges including finding the right tools and platforms (18%)
and securing budget approval from leadership (15% tied).
Additionally, integrating AI with legacy systems (15% tied) and
finding skilled developers (10%) are significant obstacles. These
challenges underscore the complexity of implementing AI solutions
and the need for strategic planning and support at all levels of
the organization.
Future Directions and
Growth:
- Increased AI Experimentation: The
report indicates a strong inclination among retail leaders to
expand their AI initiatives, with 65% planning to increase the
volume of AI projects.
- The Road to Success: Essential
factors for successful AI integration include enhanced AI education
and training, better data quality, and improved integration
tools.
Reflecting on the survey, Marhamat
said, “As AI continues to evolve, it is imperative for retailers to
embrace and experiment with AI. Personalization, powered by AI, is
not just a trend but a strategic imperative that can significantly
differentiate brands in a crowded market.”
To access the full non-gated report, visit
here: https://insights.raydiant.com/state-of-ai-retail
About Raydiant:
Raydiant is the leading in-location
Experience OS for the world's most innovative restaurant, retail,
hospitality, banking, and entertainment brands. With Raydiant,
franchise managers, IT, marketing, and communications executives
can more effectively scale their brick-and-mortar operations,
reduce anxiety from outdated technology oversight, and seamlessly
create more engaging and personalized in-store experiences that
keep customers buying more. Raydiant works with nearly 5,500
brands, from SMB to enterprise, including First Bank, Dickey's BBQ,
Harvard University, The Salvation Army, Red Bull, Chick-Fil-A,
Thomson Reuters, and Wahlburgers. Founded in April 2017, Raydiant
is headquartered in San Francisco, California, and has raised over
$50 million from 8VC, Atomic Ventures, Lerer Hippeau, Transmedia
Capital, Illuminate Ventures, Ron Conway, and others.
For more information, visit
www.raydiant.com or follow us on LinkedIn,
Facebook, Instagram, and Twitter @TryRaydiant
Brett@gofrontlines.com