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Retailers weigh AI upgrades against tight budgets and legacy systems
Artificial intelligence is becoming a competitive requirement for retailers, with potential uses ranging from personalized shopping and demand forecasting to inventory optimization and customer service automation, according to analysis from Yahoo Finance via Retail Insight Network.
The challenge is that adopting AI can be costly and complex, especially for retailers running on older technology. The article says investing too slowly can mean losing market share, while replacing legacy systems and integrating new platforms requires significant time, money, and expertise, widening what it calls a technology divide.
It also points to recurring barriers to successful AI adoption, including legacy infrastructure, fragmented data, and skills shortages. Retailers with newer digital platforms are reportedly more able to move AI from pilot projects into day to day operations.
Yahoo Finance notes that retailers continue to increase AI investment aimed at improving efficiency and decision-making. The report highlights uses such as better demand forecasting, optimized stock levels, automation of repetitive tasks, more relevant promotions, and faster routine customer support, as customer expectations for relevant recommendations, fast delivery, and seamless experiences keep rising.