Intelligent retail

AI is forcing retailers to rethink how their entire business functions, from product design through to customer engagement.

And while many retailers are already harnessing AI for things like personalisation, predicting customer needs before they arise, automating customer service and optimising inventory in real time, we predict that this will develop rapidly over the next five years.

We surveyed over 163 key decision makers from the retail sector to understand the barriers that stand in the way of widespread adoption. We also looked at the opportunities that come with deploying and embedding AI across retail businesses.

The outcome is our ‘Intelligent retail’ report, a blueprint you can use to successfully deliver value with AI within your own organisation.

Read the ‘Intelligent retail’ report

Linda Ellett

Head of Consumer, Retail & Leisure

KPMG in the UK

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To ensure AI is driving value, through growth and efficiency, retailers need to have a clear leadership vision that enables enhanced management capability and embeds a culture of quality and curiosity.

Linda Ellett

Head of Consumer, Retail & Leisure

How you can deliver value with AI

We’ve identified a framework for AI value creation based on leading practice among retailers. The framework can help you build maturity across three distinct phases. Across these, the model looks at how you can increase the maturity of your tech foundations, the use of AI in functions, and how AI is orchestrated across the enterprise.

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Phase 1: Enable your people

This phase is about enabling your people and building AI foundations. You’ll be creating an AI strategy, identifying high-value use cases, boosting AI literacy, aligning with regulations, and establishing ethical guardrails.

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Phase 2: Embed AI into workflows

The Embed phase integrates AI into end-to-end workflows, products and services. In doing so, you start to deliver greater value. Your focus should be on breaking down silos and embedding AI across your core functions. That will provide real-time insights and improve decision making. You’ll now be measuring customer satisfaction scores and speed to market as key metrics of success, alongside efficiency and cost reduction.

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Phase 3: Evolve the retail eco-system

During the Evolve phase, you’re forming new business models and ecosystems to solve industry-wide problems. And you’re part of an ecosystem with customers, suppliers and governments. You’re using predictive insights to deliver sustainable outcomes. AI agents are no longer inhibited by silos or organised along value streams. And real-time monitoring ensures the integrity of your platforms.