Retailers looking to get ahead of the AI hype-curve and realise the benefits of the technology are postponing planned store technology investment to prioritise AI, according to research from Pricer, the preferred partner for in-store communication and digitalisation.

Polling of 100+ senior UK retailers showed that over two thirds (67%) plan to invest in AI at the expense of existing road-mapped technologies within the store.  

Retailers and consumers turn to AI as adoption grows

With one in six UK businesses already having embraced at least one AI technology, retailers are rapidly adopting the technology, helping them to improve operations and create efficiencies to mitigate against rising costs facing their organisations.  A recent poll of 2,000 retailers, conducted by the Retail Technology Show, reported that AI tops the technology retail leaders believe will for unlocking growth in 2025.

At the same time retailers are rapidly deploying AI, its adoption is becoming more widespread among consumers – and with increasing use of the tech in their day-to-day lives, this is prompting customers to expect and demand AI to enhance their shopping journeys. 

Almost half (45%) of UK consumers already use AI day-to-day, rising to 79% of Gen Z, according to Retail Focus. An Ayden poll also showed shopper adoption of AI has surged in the past 12months, rising +47% year-on-year as consumers increasingly use the tech in everyday buying journeys.

Pricing and customer service among top AI deployments

Pricing automation and AI for customer service in-store were the top types of AI that 59% retailers plan to invest in over other technologies, according to Pricer’s research.  This was followed by shelf-edge AI cameras (53%) and AI-powered in-store content (47%).

With 43% of retailers saying that extracting data and insights from in-store technology investments to drive future performance is one of their top challenges, this is also prompting retail businesses to turn to complementary solutions at the shelf-edge to deliver data to power AI within the store.  Almost half (47%) of retailers are considering combining Electronic Shelf Labels (ESLs) with automation to capture data across inventory and fraud detection, followed by customer engagement (45%) and loss prevention (42%).

“As retailers look to power their in-store operations with AI, increasingly we’re seeing ESLs act as the glue that connects the digital shelf-edge.”

Peter Ward, UK Country Manager, Pricer

ESLs’ power “lies in unifying in-store technology investments,” said Ward. This helps retailers “effectively drive greater levels of efficiency, labour productivity and CX, all whilst allowing AI to ingest data to power even great performance and ROI,” he concluded.