Survey: Retail CEOs and Management Teams Differ On AI Uses

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Chain Store Age Mentions First Insight | Survey: Retail CEOs and management teams differ on AI uses

Retail CEOs are less likely to see the value in the predictive analytics of artificial intelligence (AI) and instead focus on other uses, according to a new survey.

The report from First Insight, titled “AI Perception Gap: Retail CEOs Lag Behind Teams on Predictive Analytics Value,” found that management teams are twice as likely to prioritize “enhanced predictive analytics” for demand forecasting, inventory management, and stock level optimization as an AI application compared to CEOs (63% vs. 33%).

First Insights noted a three-to-one gap in the recognition of “innovation” as a vital advantage of AI, with 47% of management teams in agreement, versus only 17% of CEOs. Instead of predictive analysis, CEOs surveyed were more focused on AI for cost savings (56%), improved customer experience (56%) and business transformation (39%).

CEOs place higher value than their teams on generative AI for design (44% vs 27%), voice search & conversational commerce (28% vs 17%), and fraud detection & customer sentiment analysis (33% vs 23%)

Regarding AI adoption challenges, management is twice as concerned about “lack of infrastructure” (32% vs. 17%) compared to CEOs. On the other hand, CEOs are preoccupied with building a compelling business case, assessing the risks of AI-driven decisions, and considering the impact on workforce, including business case and ROI (39% vs 26%), risk of costly AI-based recommendations and actions (39% vs 21%), and fear of workforce impact (33% vs 21%).

“AI’s potential in retail is a game-changer that’s still on the brink of being tapped by retail leaders,” said Greg Petro, CEO of First Insight. “Our findings are a wake-up call for CEOs to bridge the gap with their teams, fostering informed strategies and agile data-driven decision-making.”

First Insight’s findings are based upon a December 2023 survey executed through InsightSUITE, featuring over 160 U.S. retail corporate employees in apparel, footwear and home decor.

Read full article on Chain Store Age.

Retail Analytics  predictive analytics  press release  retail  Report  future of retail  retail trends  artificial intelligence  VoC  retail predictions  generative ai