A recent survey conducted by Honeywell (Nasdaq: HON) reveals that over 80% of retailers are planning to enhance their AI capabilities in 2025. The findings underscore how businesses are leveraging automation and artificial intelligence to address shifting consumer expectations, upskill their workforce, and improve overall operational efficiency. Notably, 35% of major retailers intend to significantly increase their AI investment this year.
AI Revolutionizing Retail: Enhancing Operations and Employee Experience
Honeywell’s research, which involved U.S. retailers and holiday shoppers, highlights the increasing role of AI in retail. Retailers are adopting AI solutions to tackle challenges in an ever-evolving omni-channel landscape, focusing on areas like return management, automating customer service, and monitoring product availability.
David Barker, president of Honeywell Productivity Solutions and Services, emphasized the transformative potential of AI in retail. “The retail industry is experiencing a shift toward autonomous operations, with AI tools making significant improvements in the shopper’s journey, the employee experience, and supply chain efficiency,” he said.
AI Empowering Employees and Boosting Retention
The survey found that retailers are utilizing AI capabilities to not only streamline operations but also enhance the skills and job satisfaction of their workforce. With over 580,000 projected U.S. retail job openings this year, AI is seen as a tool to improve employee engagement and retention.
Key findings include:
- Over half of surveyed retail leaders said AI tools improve employee retention, with 52% noting that AI capabilities help employees develop soft skills, advance in their careers, and continuously add value.
- AI solutions also make jobs easier for employees, as confirmed by 60% of retail executives, while 55% indicated that AI increases job satisfaction.
AI Transforming the Customer Experience
For shoppers, AI tools are enhancing online and in-store experiences by providing access to information, faster transactions, and seamless price comparison.
Key insights from Honeywell’s survey of shoppers:
- Two-thirds (66%) of consumers reported using AI capabilities while shopping, such as interacting with chatbots, comparing prices across stores, or reading customer reviews.
- Price comparison is the top use case for AI (53%), followed by checking product availability (41%) and streamlining the checkout process (34%).
Looking Ahead: AI’s Role in Shaping Retail
The findings indicate that AI will play a pivotal role in shaping the future of retail by addressing operational inefficiencies, improving job satisfaction, and delivering a superior customer experience.
For more details about Honeywell’s survey and its AI solutions, visit Honeywell Automation in Retail.
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