- Despite leading in AI and growth initiatives, 34% of retailers feel they are falling behind their peers
- Retail companies have fewer AI deployment delays compared to other global industries
- 64% of retailers worry about implementation costs, one of the highest groups across all industries
- Only 64% of retailers plan to increase AI spending in the next 12 months, compared to 92% in 2023
SAN FRANCISCO, June 18, 2024 (GLOBE NEWSWIRE) -- Lucidworks, a leader in search and total AI solutions, today released new retail-focused findings from its second annual Generative AI Global Benchmark Study. The study gathered input from over 2,500 leaders involved in AI technology decision-making worldwide. The report explores key areas of generative AI investment and organizations' progress in adopting generative AI.
Despite the initial hype, slow deployment and low success rates are commonplace across most industries, with only 25% of planned projects fully implemented. However, retail leads deployment in revenue and growth initiatives and is second in total AI deployments across all industries. Retailers are also seeing strong financial benefits from AI, with nearly half already reporting increased revenue and cost savings as a result of their initiatives.
Concerns around AI spiked across all industries in 2024, including three times as many security concerns, five times as many accuracy concerns, and four times as many transparency concerns. The largest spike was around implementation costs which increased from 3% in 2023 to 43% in 2024. Retailers are particularly concerned about costs (64%), but they are still rapidly adopting AI and experiencing fewer delays than other industries.
The 2024 Generative AI Global Benchmark Study also includes the following findings:
- Investment Slowdown: Global AI spending plans are down sharply, with only 63% planning increases (vs. 93% last year). USA-based organizations remain above average with 69% planning to increase AI spend.
- Slow Progress: Delayed deployment and low success rates are commonplace with only 25% of planned projects fully implemented. This lag is stalling anticipated ROI, with 42% of companies yet to see significant benefits from generative AI initiatives.
- Spending Flattens: Across all organizations, 36% of leaders plan to keep spending flat, compared to only 6% in last year’s survey.
- China’s Sharp Decline: Only 49% of Chinese leaders plan to increase AI spending in 2024, a massive drop from 100% in 2023.
- Commercial LLMs Dominate: Nearly eight in 10 companies use commercial LLMs and 21% have opted for open source only.
- Competitive Concerns: A third of business leaders feel like they’re falling behind competitors despite almost everyone struggling to implement this new technology.
"In 2023, nearly 50% of retailers had a positive view of AI, one of the highest percentages across the industries surveyed. That initial wave of enthusiasm translated into one of the most successful deployment rates in 2024,” said Mike Sinoway, CEO, Lucidworks. “Retailers are constantly under pressure to innovate and adopt new technologies to enhance customer experiences, often setting the pace for other industries. The key for retailers moving forward is to strike the right balance between reaping the rewards of AI, managing costs, and mitigating potential risks."
Download the complete 2024 Generative AI Global Benchmark Study and accompanying retail-focused findings today. Learn more about Lucidworks at Lucidworks.com.
About Lucidworks
Lucidworks clients are more than 2.5x more likely to successfully deploy generative AI initiatives than their peers. The world's largest brands including Crate & Barrel, Lenovo, and Red Hat rely on Lucidworks' suite of products to power commerce, customer service, and workplace applications that delight customers and empower employees. Contact us today to build your AI success strategy.
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