Over 55% of retailers report an ROI of over 10% from their AI investment: KPMG
56% of retailers have been using AI for over 3 years. With 67% believing that AI spending in the next year will significantly increase the global budget spent on AI
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KPMG International has unveiled a new report titled, 'Intelligent Retail: A Blueprint for Creating Value through AI-Driven Transformation'. As consumer expectations continue to escalate, the report highlights how AI is revolutionizing retail by enabling hyper-personalized customer experiences, optimizing inventory management, and automating customer service with near-human precision.
Some key highlights of the report include:
Significant ROI from AI Investments: Over 55% of retailers have reported an ROI of over 10% from their AI investments, with 21% seeing returns exceeding 30%. AI has driven productivity gains (33%), enhanced efficiency through cost reductions, etc. (67%), and innovation in new products and services (47%)
AI Spending and Budget Allocation: 56% of retailers have been using AI for over 3 years. With 67% believing that AI spending in the next year will significantly increase the global budget spent on AI
Customer Experience and Engagement: AI-powered applications like fashion avatars, smart shopping carts, and virtual influencers are enhancing customer engagement. 47% of retailers state that AI has led to new product and service developments
Data Management and Integration: 74% of retailers identify data management as a primary challenge to scaling AI in retail. With only 28% have achieved system-level data integration, and just 7% have fully automated data integration
Strategic AI Roadmap: 24% of retailers have a clear, ambitious vision for AI as a central driver of organizational transformation
Puneet Mansukhani, Co-Lead Consumer & Retail and Head of Global Retail Digital Technology and Transformation at KPMG in India, said, "AI is revolutionizing the retail landscape by enabling retailers to deliver seamless, personalized experiences that meet the evolving expectations of consumers. Our latest report underscores the critical role AI plays in enabling retailers to meet and exceed the evolving expectations of today's consumers. By leveraging AI, retailers can deliver hyper-personalized experiences, optimize their operations, and drive significant value across their entire business. As we look to the future, those who embrace AI at the core of their strategy will not only keep pace with the industry but will set new standards for innovation and customer engagement."
