KPMG’s Survey: Retailers Are Shifting From AI Experiments to AI at Scale

Artificial intelligence is moving from experimentation to long-term business strategy.

According to KPMG’s latest survey of 250 retail executives, retailers are increasing investments in digital technologies at a rapid pace. More than half of respondents now spend at least $50 million annually on digital transformation, while nearly one-third invest between $100 million and $250 million each year.

The report also shows where those investments are heading. Over the next 12 months, retailers expect to increase spending on cybersecurity (52%), data and analytics (49%), and AI and automation (42%). For the retail industry, AI is no longer viewed as a standalone innovation project. It is becoming part of the core technology stack that supports future growth.

AI Is Moving Beyond the Pilot Stage

The survey highlights how quickly AI adoption is maturing.

Today, 42% of retail executives say their companies are already deploying AI at scale. Within the next year, that figure is expected to rise to 74%.

This suggests that retailers are becoming more selective about where AI creates value. Rather than testing isolated use cases, many businesses are integrating AI into day-to-day operations, from merchandising and marketing to customer service and supply chain management.

At the same time, most respondents said their technology investments are already delivering measurable business value. Many estimate they have realized between 31% and 40% of the expected financial return from AI and other intelligent technologies.

Better Technology Starts With Better Data

One of the report’s most notable findings is that retailers plan to invest almost as heavily in data and analytics as they do in AI itself.

That relationship is important.

AI systems rely on accurate, structured, and accessible information. Without high-quality data, even the most advanced AI tools struggle to deliver reliable recommendations, meaningful insights, or personalized customer experiences.

For e-commerce businesses, this makes product information a strategic asset.

Structured product attributes, consistent specifications, high-quality images, and enriched product content help power AI search, recommendation engines, automated merchandising, and conversational shopping experiences.

As retailers expand their AI capabilities, investment in product data becomes just as important as investment in AI models.

The Shopping Experience Is Changing

The report also reflects changing consumer behavior.

Retail executives speaking at industry events noted that shoppers increasingly interact with retailers through natural-language questions instead of simple keyword searches. Rather than searching for a specific product, customers describe what they want to achieve and expect AI to guide them through the buying journey.

This changes how products need to be presented online.

Detailed descriptions, complete specifications, and structured attributes help AI understand products and recommend them more accurately. Rich product information becomes essential not only for customers but also for the AI systems that help them shop.

At the same time, retailers continue to emphasize that AI complements rather than replaces human expertise. In sectors such as beauty, home improvement, and other advice-driven categories, personal guidance remains an important part of the customer experience.

Legacy Systems Still Hold Retailers Back

Despite growing optimism, challenges remain.

Nearly half of the executives surveyed said technical debt continues to limit their ability to invest in new technologies. Outdated systems, aging infrastructure, and legacy software make it more difficult to adopt AI quickly and efficiently.

This highlights another important lesson.

Successful AI adoption is not only about adding new tools. It also requires modern, connected systems capable of supporting them.

AI Investment Is Becoming More Strategic

The KPMG survey shows that retailers are entering a new phase of digital transformation.

The conversation is no longer centered on whether AI should be adopted. Instead, retailers are deciding how to integrate AI into broader technology strategies alongside data, cybersecurity, and modern infrastructure.

AI delivers the greatest value when it is built on reliable data, strong digital foundations, and clear business objectives. As retailers continue increasing investment, the companies that combine AI with high-quality product information will be best positioned to create better shopping experiences and deliver measurable business results.