The Times They Are A-Changing: Impact of AI in Grocery

Summary

The "Impact of AI in Grocery" report, conducted by Grocery Doppio, underscores the transformative role of Artificial Intelligence (AI) in the grocery industry, emphasizing its necessity for future competitiveness. A key finding is that 69% of grocery sales in 2023, totaling $249 billion, were digitally influenced, highlighting the shift towards omnichannel shopping experiences. This digital influence showcases the growing importance of integrating AI to meet consumer expectations across online and offline platforms.

The report predicts AI will unlock a significant value of $113 billion by 2025, with the largest impacts expected in supply chain and logistics ($58.4 billion) and merchandising ($21.1 billion). Such statistics underline AI's potential to revolutionize operations, enhance customer engagement, and drive efficiency. However, it also reveals a gap in current AI adoption, with only 13% of grocers utilizing AI across multiple business domains, suggesting a vast untapped potential within the industry.

Challenges in AI integration are highlighted, including a notable analytic maturity deficiency, with only 9% of grocers having adequate analytic talent. This talent gap suggests a pressing need for investment in skills and technology to harness AI's full capabilities. Despite these hurdles, the grocery sector's expected fourfold increase in AI spending by 2025 indicates a strong commitment to overcoming obstacles and leveraging AI for growth and innovation.

The report serves as a call to action for grocers to embrace AI and digital transformation to stay competitive. With AI's ability to enhance operational efficiency, personalize customer experiences, and drive significant financial gains, the grocery industry stands on the brink of a major technological leap, poised to redefine the future of shopping.

Why should you download this report:

The report provides compelling evidence of the digital transformation within the grocery sector, with 69% of 2023's grocery sales being digitally influenced. Understanding this shift is crucial for businesses looking to adapt and thrive in the evolving retail landscape.

It highlights the potential of AI to unlock $113 billion in value by 2025, with significant benefits across the supply chain, merchandising, and customer engagement. This statistic alone presents a strong case for the strategic importance of AI investments in driving growth and efficiency.

The report reveals a critical gap in AI adoption, with only 13% of grocers utilizing AI across multiple areas of operation. This insight can motivate businesses to accelerate their AI strategies and gain a competitive edge in the market.

By outlining the current challenges in adopting AI, including analytic maturity and talent scarcity, the report also sheds light on the opportunities for improvement. Understanding these challenges is key to developing effective strategies for AI integration and leveraging its full potential.

With a predicted fourfold increase in AI spending by 2025, the report is a valuable resource for understanding future trends and areas of investment. It provides a roadmap for grocers to navigate the digital transformation, highlighting where to allocate resources for maximum impact.

Survey Demographics:

The survey captured responses from 152 grocery executives to understand their personalization maturity, capability, challenges, and ideal state.

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