How AI is transforming in-store retail experiences

As retailers and brands continue to invest in AI, the impact on the shopping experience and consumer behavior is transformative, according to two research reports. The data also revealed gaps in in-store operations but also opportunities to make improvements.

In a consumer survey of 4,000 shoppers in the U.S. and U.K. by Bloomreach, the AI company offering personalization solutions for digital commerce, researchers found that AI adoption at retail has accelerated dramatically over the past year, "quickly moving from novelty to necessity."

The survey also showed that the industry has reached a tipping point in consumer behavior. The report's authors said if consumers are forced to choose, they would choose to shop through an AI tool (42 percent) instead of from a retailer's website (38 percent). This is a change from last year's survey when 58.9 percent preferred a brand's site directly compared to 41.1 percent preferring AI.

In a separate survey of 250 U.S. retail executives and 500 U.S. consumers, researchers at VoCoVo found that AI is rapidly changing brick-and-mortar retailing. Until recently, AI was mostly used for e-commerce and marketing. Now, the technology is being used in physical stores-from loss prevention and inventory visibility to checkout optimization and store associate communications.

"But the acceleration of AI has surfaced a tension: while retailers are urgently adopting automation to address labor pressures, rising theft and operational costs, consumers remain guided by trust, transparency and comfort," the report's authors said. "Shoppers want faster, easier experiences-but not at the expense of human connection or privacy. This gap between technological ambition and emotional readiness is becoming a central issue for U.S. retailers."

The survey showed that 94 percent of retail leaders polled said operational improvements are important. Surprisingly, 43.6 percent of executives said operating conditions have worsened due to labor shortages and rising costs. But is AI the fix? Perhaps. Nearly 44 percent of retail executives polled said they plan to implement AI within the next year, while 28.1 percent are already using it.

On the consumer side, 42 percent of shoppers polled said faster checkout is the number one improvement they want. And when it comes to the human touch, 62 percent of consumers said they ask staff for help when they cannot find an item. With AI, a whopping 80 percent of shoppers said they are unsure how AI is used and express discomfort when it feels like surveillance. Meanwhile, 37 percent of consumers said they believe shoplifting has increased and associate it with stressful store environments.

There is also one common theme with both groups: they value human support. "Consumers don't want fewer staff, and retailers see [AI] augmentation, not replacement, as the goal," the report's authors said, adding that "AI adoption is accelerating, but transparency, trust, and emotional comfort lag behind."

Using AI in physical stores for inventory assessments is also key. "One in four consumers (25 percent) say real-time stock visibility would significantly improve their in-store experience, reflecting growing intolerance for empty shelves, locked cases and uncertainty about product availability," the report stated. "When shoppers can't trust inventory accuracy, frustration escalates quickly and reliance on staff increases."

Raj De Datta, co-founder and chief executive officer of Bloomreach, said consumers today aren't experimenting with AI anymore; they are relying on it. "And beyond that … they're enjoying it," De Datta said. "Most say AI shopping experiences are meeting or exceeding their expectations. The way consumers search and shop has changed, and brands have to adapt accordingly. Customer engagement built for yesterday won't win the shopper of today."

Bloomreach's survey showed that 75.4 percent of respondents reported having used AI tools such as Claude, ChatGPT and Gemini to help with shopping or purchase decisions. And they are satisfied. The poll showed that 80.4 percent of consumer respondents said AI shopping experiences have already met or exceeded their expectations.

While AI adoption by retailers and brands and its use by consumers is rapidly rising, there are hiccups on the business side. ManpowerGroup Talent Solutions released a poll Wednesday that revealed a big barrier to AI transformation: workforce readiness and a leader's ability to guide employees through change.

The poll showed that only 3 percent of organizations polled say their leaders are highly prepared to manage AI-enabled ways of working, as 78 percent report employee concern about how AI will impact their jobs.