The report examines the significant and transformative role of Artificial Intelligence (AI) in the grocery industry, highlighting its increasing importance for future competitiveness through key findings.

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Summary

The "State of AI in Grocery 2024" report, conducted by Grocery Doppio, explores the profound impact of Artificial Intelligence (AI) on the grocery industry, emphasizing its growing significance for future competitiveness. The report highlights that AI is projected to unlock $136 billion in value across the grocery sector by 2030, with the largest impacts expected in supply chain and logistics ($67.7 billion) and merchandising ($25.7 billion). Other significant areas include marketing ($19.3 billion), store operations ($15.8 billion), customer service ($2.5 billion), and IT/technology ($2.3 billion).

According to the report, Grocery C-Suite executives have prioritized AI for its ability to enhance operational efficiency over customer experience, with 86% citing efficiency as the primary area of impact. There is a strong belief among executives that AI is crucial for future competition, with 71% indicating it will be a necessity.

The report indicates a significant increase in technology spending to integrate AI, with a 12x rise expected by 2030. Despite the excitement surrounding AI, its adoption faces hurdles such as budget constraints, technical infrastructure challenges, and limited talent.

The report highlights the imperative for grocers to adopt AI to achieve substantial improvements in supply chain efficiency, targeted marketing, and customer service. AI-powered solutions are expected to be pivotal in elevating the shopping experience, thereby boosting customer loyalty and satisfaction.

 

Why should you download this report

  • The report provides comprehensive insights into how the grocery sector is undergoing digital transformation, with 81% of sales in early 2024 being influenced by digital channels. Comprehending this digital shift is vital for businesses seeking to adapt and excel in the evolving retail environment.
  • It highlights AI's potential to unlock $136 billion in value by 2030, especially in supply chain and logistics, merchandising, and marketing. This underscores the strategic importance of AI investments for driving growth and operational efficiency.
  • According to the report, 86% of grocery C-suite execs say that AI will be a necessity in the future, up from 81% in 2023. Few grocers have fully embraced AI across multiple business domains, pointing to significant untapped potential. This offers grocers the incentive to accelerate their AI strategies.
  • The report also sheds light on the current challenges in adopting AI. Budget availability continues to be the #1 challenge for grocers to scale AI (73%, up from 71% in 2023), followed by technical infrastructure issues (71%) and proof of performance/unclear ROI (66%).
  • With a predicted 12x increase in technology spending on AI by 2030, 84% of grocers are expected to embed in most, if not all, of their technologies. The report serves as a crucial resource for understanding where future investments should be directed to maximize impact and drive digital transformation.
 

Survey Demographics

The report is based on responses from 233 grocery executives to understand their perception of adoption, investment, and challenges related to AI.

The respondents included a variety of roles such as technology leaders, senior executives (SVP/EVP/CXO), digital/eCommerce professionals, supply chain/logistics managers, and those involved in in-store operations.