Over 90% of companies are either utilizing AI or exploring its implementation. The technology should contribute trillions to the global economy, with most adopting it to automate routine tasks, enhance decision-making with data-driven insights and personalize customer experiences. Retailers across the U.S. and U.K. are under pressure to prove they also have an AI strategy that can deliver results.
Despite widespread claims of adoption, only about 5% to 6% of companies report that AI significantly improves their bottom line. As the industry ponders visions for the store of the future, it’s critical to assess whether AI in physical retail is being advanced strategically or simply accelerated to meet expectations.
When Optics Outpace Operational Readiness
At the executive level, the expectation is for new investments to demonstrate progress, show innovation and outpace competitors. While AI has become shorthand for modernization, many retail environments still rely on fragmented systems that were never designed to accommodate real-time data or intelligent automation. The result is a widening gap between the speed of AI ambition and the slower pace of operational readiness. As a result, we are witnessing the creation of an AI urgency gap.
This urgency is shaped by a shift in how AI initiatives are being evaluated. Traditionally, retail technology has been judged on clear operational metrics. These include labor efficiency, conversion rates and shrinkage reduction. Increasingly, however, AI is being driven by optics as much as outcomes. Leadership teams want to see visible progress. There is a reputational risk if a retailer appears to be lagging in implementing such innovation. It’s not only a question of whether an initiative delivers return on investment (ROI), but if it indicates external momentum to competitors and consumers alike. While this can accelerate innovation, it also raises the risk of prioritizing highly visible pilots over scalable, foundational improvements.
Overall, this dilemma is playing out differently across global regions, but these standards are having an enormous impact on a brand’s AI strategy.
Different Paths to AI Adoption
Across the U.K. and parts of Europe, retailers have moved quickly to pilot AI technology within physical stores. According to recent research, 95% of retailers in Europe are experimenting with AI. In contrast, many U.S. retailers are taking a more measured approach.
Rather than leading with headline-grabbing AI deployments, the U.S. is investing in frontline enablement tools that improve associate productivity, streamline communication and enhance customer service. In fact, the operations-focused segment of the AI retail market is projected to hold a dominant 64.8% market share. This suggests differing interpretations of “AI-readiness.” One is focused on experimentation and visibility, while the other is on operational impact.
The Hidden Constraints of In-Store AI
No matter the region, a constant challenge for AI adoption centers around infrastructure. AI isn’t something retailers can simply layer on top of existing operations. It relies on integrated systems. Unfortunately, many retailers are still dealing with siloed platforms that limit data sharing and slow decision-making. When systems don’t work together, AI initiatives can be delayed or lose impact, especially when real-time responses are required.
This issue is compounded by the fact that most store networks are a mix of old and new equipment and connectivity options that vary widely by location. An AI solution paired with legacy equipment may perform well in a single pilot store, but scaling it across hundreds of locations introduces friction. Differences in layout, bandwidth and device capability all affect performance. This is where the promise of AI runs into the day-to-day realities of physical retail, often tempering expectations.
Such operational realities extend beyond infrastructure. Even when AI systems generate useful insights, their effectiveness ultimately depends on how quickly and clearly store teams can act on them.
The Critical Link Between AI and the Store Associate
In a store environment, execution depends on how effectively teams can communicate, coordinate and respond in real time. Despite being central to any in-store executions, store associates are often left out of the AI conversation. If communication channels are fragmented or inefficient, even the most sophisticated AI insight risks going unused. An alert about a stockout has little value if it does not reach the right associate at the right time or if acting on it requires navigating multiple disconnected systems. This can be seen in curbside pickup. A shopper places an order through an app or website and notifies the store upon arrival. If that alert is delayed or fails to reach the right associate in time, the convenience of the service quickly disappears. Without seamless communication between systems and staff, even well-designed retail technology can create friction instead of efficiency.
AI insight by itself isn’t useful. It must be integrated properly with frontline execution. This means, for example, replacing traditional two-way radios with AI-connected communication platforms. More importantly, AI can’t be viewed as a singular, standalone tool. Embedding its insights into everyday store operations simplifies coordination. This enables teams to quickly share information, assign tasks and respond effectively even in the most stressful environments.
As retailers continue to set their AI investment priorities, they must focus on aligning ambition with operational reality. The AI urgency gap can only be addressed with a balanced approach. One that pairs innovation with infrastructure, visibility with viability and technology that integrates with frontline teams. That means investing not only in advanced capabilities, but also in the foundational systems, workflows and communication tools that enable store associates to act on AI-driven insights in real time.
Olivia Robinson is Global Strategy & Enablement Director at VoCoVo, a leading voice technology company transforming how retailers communicate and operate. Building on a strong foundation of hands-on experience in retail operations, Olivia has spent more than seven years driving significant growth at VoCoVo. She works with major retail brands across the U.K., Europe and North America to implement scalable, connected communication solutions. Using her in-depth retail knowledge and in-store expertise, she helps retailers unlock the real-world impact of connected communications, improving efficiency, empowering teams, and enhancing the customer experience.
