Honeywell Survey Looks at Retail AI Plans

A recent survey conducted by Honeywell found that over 8 in 10 retailers intend to increase use of automation and artificial intelligence (AI) across their operations. They plan on doing so to adapt to changing consumer behaviors, enhance employee skills, and improve efficiency for shoppers.

The survey found that thirty-five percent of the major retailers plan to "significantly" increase AI investment for things like improving return management, automating customer service, and monitoring product availability. Small businesses must continue to adapt to stay competitive.

"We are truly in the midst of a new era for the retail sector where evolving AI capabilities will make a positive impact on the shopper’s journey, the employee experience and the retailer’s supply chain operation," said David Barker, president of Honeywell Productivity Solutions and Services. "On their journey toward autonomous operations, retailers are looking for AI and automation solutions that provide actionable data and help to upskill their employees."

The survey found that retailers are using AI to enhance employees’ skills and improve on-the-job experience. According to Honeywell, this could help fill over 580,000 projected retail job openings in 2025.

Image via Honeywell

Over half of those polled said AI improves employee retention, and 52 percent think AI can help employees progress more quickly in their careers, expand soft skills, and continuously provide value in their jobs. Sixty-percent of retail executives polled said AI tools make the job easier for employees, and 55 percent said they increase job satisfaction. Honeywell says this aligns with the retail industry’s increasing focus on how employee satisfaction can support the customer experience.

The findings also show that AI is playing a role in improving customer experience for shoppers by providing better access to information, facilitating quicker transactions, and making it easier to compare prices. Two third of consumers polled said they have used AI while shopping, including asking questions via chatbot, comparing prices for an item across retailers, and/or summarizing customer reviews.

The survey found that comparing prices across stores is the most sought-after use for AI (53 percent), compared to checking product availability (41 percent), and having a simpler checkout experience (34 percent).

While Honeywell’s survey mainly looked at AI use by large retailers, small businesses can also take note.

"Small businesses can start by identifying specific operational challenges—such as streamlining checkout processes or managing stock levels—and exploring affordable AI technologies tailored to their needs. These initial steps can help smaller retailers stay competitive in an increasingly AI-driven market," says Joshua Sophy at SmallBizTrends.com.¹

Small business owners should look into ways to use AI for personalization, customer experience, inventory management, pricing strategies, marketing, fraud protection, and customer insights. Utilizing AI to improve employee skills can also make your team stronger.

¹https://smallbiztrends.com/honeywell-ai-retail-survey/