Honeywell has just released its latest AI Research in the retail sector. The content highlights that more than 8 out of 10 retailers plan to increase the use of automation and artificial intelligence (AI) in their operations, with premises such as adapting to changing consumer behavior, enhancing employee skills, and improving efficiency for shoppers.
The study, conducted with major retailers and consumers in the United States during the period leading up to the year-end holidays, also revealed that 35% of retailers plan to significantly increase their investment in AI to address the major pain points they face in today’s fast-paced and decentralized environment, including improved returns management, customer service automation, and product availability monitoring.
“We are truly in the midst of a new era for retail, where the evolution of AI capabilities will have a positive impact on the shopper’s journey, the employee experience, and the retailer’s supply chain operations,” said David Barker, President of Honeywell Productivity Solutions and Services. “On their journey toward autonomous operations, solutions must provide actionable data that helps enhance the skills of the industry’s workforce,” he added.
The research also reinforced that retailers in the segment are using AI to enhance employee skills and improve their work experience, which may ultimately help fill the over 580,000 projected job openings in the United States this year¹.
Key findings from the study:
- More than half of the retail leaders surveyed said AI improves employee retention. Additionally, 52% believe AI can help employees progress faster in their careers by expanding their social skills and continuously adding value to their jobs.
- More than half (6 in 10) of retail executives said AI tools make employees’ jobs easier, while 55% said they increase daily satisfaction. This aligns with the retail industry’s growing focus on how employee satisfaction can support the customer experience for their businesses.
- AI is also playing an increasingly important role in improving the customer experience for shoppers, both when shopping online and in person. It can provide shoppers with better access to information, faster transactions, and an easier way to compare prices.
Key findings from Honeywell’s retail shopper research included:
- Two-thirds of surveyed consumers (66%) reported using AI while shopping, whether to ask a question via a chatbot, compare prices of an item across retailers, or summarize customer reviews.
- Comparing prices across stores is by far the most sought-after use case for AI (53%), followed by checking product availability (41%) and having a simpler, seamless checkout experience (34%).
To learn more about the survey results and how Honeywell’s AI solutions are helping shape the new era of retail, visit https://automation.honeywell.com/us/en/industries/retail.
Methodology
Honeywell commissioned Wakefield Research to conduct the Honeywell Retail Executives Survey and the Honeywell Retail Consumers Survey (collectively referred to as the “Honeywell AI in Retail Survey”). These were done as omnibus surveys between December 2-8, 2024, using an email invitation and online survey format. The Retail Executives Survey interviewed 100 U.S. executives who met the minimum requirement of being a vice president at retail companies with annual revenue of at least $100 million. The Retail Consumers Survey interviewed 1,000 nationally representative U.S. adults ages 18 and older.
