Forrester Study Reveals Retailers Overwhelmed by AI Adoption Challenges Despite High Enthusiasm

A recent study by Forrester Research reveals that while retailers are eager to adopt artificial intelligence (AI) to enhance operations and increase revenue, many lack the necessary data management practices and technical expertise for successful implementation.

Commissioned by enterprise software provider Epicor, the study indicates that 70% of retailers consider an AI-powered retail management system essential. However, overall adoption of AI remains in its infancy. “Processes like receiving and sales and operations planning exhibit the lowest usage, with less than 20% of respondents utilizing advanced AI,” the report notes.

Data quality and management issues present significant barriers to AI implementation. The study found that 77% of respondents struggle to derive actionable insights from their collected data, and 67% report an inability to gather usable data for better business insights. Overcoming data silos is identified as a critical challenge.

Moreover, many retailers lack the technical skills to keep pace with rapid AI advancements. According to the study, 70% of participants feel their organization requires further education on AI retail solutions, while 65% express difficulty in staying updated with new AI technologies.

Marco de Vries, Vice President of Product Marketing at Epicor, emphasized, “The first step for retailers to realize the value of AI is to better understand the available landscape and address underlying data quality and collection issues.”

The findings stress the importance of investing in robust data infrastructure, governance, and internal education to fully leverage AI's potential. With a solid foundation, AI-powered retail management systems can provide retailers with data-driven insights that enhance efficiency, forecast demand, and deliver an exceptional customer experience.

To explore the study further, download it here.