Retailers lack AI strategy despite competitive pressure

HyperFinity has published research showing that fewer than half of retailers have a defined AI strategy, despite widespread pressure to adopt the technology. The study found that 91% of retail decision-makers feel pressure to use AI to remain competitive.

The survey of 200 retail decision-makers points to a gap between enthusiasm for AI and the structures needed to put it to work. While 53% described AI as one of the most important initiatives in their business, only 46% said they had a well-defined strategy backed by clear value cases.

Another 42% said they had identified possible AI use cases but were still uncertain about the commercial value those projects would deliver. The findings suggest many retailers have moved quickly to explore the technology without deciding how success will be measured.

Readiness gap

Skills and operational readiness also emerged as concerns. Just 27% of respondents said their teams were fully prepared for agentic AI deployment, while 25% said their workforce was only somewhat ready and 5% said they were not ready at all.

This leaves much of the sector under pressure to push ahead with AI adoption while still building internal expertise, governance and operating models. The results suggest the race to adopt AI is outpacing many retailers' ability to support it with the right decision-making frameworks.

Pressure is coming from both internal strategic priorities and market competition. Alongside the 53% who ranked AI among their most important business initiatives, 39% said competitor activity was shaping their roadmap.

Thomas Hill, Co-Founder, HyperFinity, commented: "This research tells us that, as AI adoption accelerates, retailers face increasing pressure to develop the skills, governance frameworks and operating models needed to support long-term success."

Decision-making

The research also found that retailers increasingly expect AI to influence routine business decisions rather than remain limited to analysis or reporting. More than four in five respondents, or 83%, said they believed AI would either lead or automate decisions across retail operations within the next year.

Half of those surveyed said they expected AI to lead operational decisions while humans retained oversight and strategic direction. A further 33% said they believed AI would automate most trading, customer and operational decisions with minimal human involvement.

Views on automation differed sharply by role. E-commerce Directors were the most cautious group, with only 9% saying they expected AI to automate most decisions, compared with 42% of Chief Data Officers and 35% of Chief Customer Officers.

Hill said the debate in the sector had changed over the past year. "The conversation in retail has shifted dramatically over the past 12 months. Most retailers no longer need convincing that AI matters. The challenge now is building the capability to turn AI into measurable business outcomes."

He added: "What we're seeing is a growing divide between organisations experimenting with AI and those embedding it into their operating model. Success won't come from deploying the most AI. It will come from having the strategy, governance and decision-making frameworks needed to create value from it."

Early uses

When asked where agentic AI was most likely to be adopted first, respondents pointed to customer service and inventory functions. Customer service was identified by 42% of those surveyed, while 37% highlighted inventory and replenishment.

Those areas tend to involve repeatable processes and clear operational rules, making them more immediate candidates for automation. More commercially sensitive areas such as pricing, loyalty, promotions and customer engagement may be harder to hand over because they rely more heavily on judgement and context.

Hill drew that distinction in more detail: "AI is exceptionally good at automating repeatable operational processes, whether that's customer service interactions, replenishment decisions or inventory management. But the bigger opportunity lies in helping retailers make better decisions.

"Areas such as pricing, loyalty, promotions and customer engagement still require commercial judgement and context. The future isn't AI replacing people. It's AI providing recommendations, insights and reasoning that help people make better decisions faster."