AlixPartners’ WRC 2025 report reveals that while 84% of retail leaders are optimistic about AI, most struggle to turn that enthusiasm into measurable results. The study offers a practical roadmap for leveraging AI to enhance customer experience, unlock new revenue streams, and drive cross-functional productivity—provided retailers invest in strong data foundations, governance, and workforce readiness.
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GLOAI in Retail: From Hype to Hard Returns – A Strategic Blueprint from AlixPartners at WRC 2025
At the 2025 World Retail Congress, AlixPartners unveiled a pivotal report titled “Beyond the Hype: Realising AI’s Potential in Retail,” offering a deep dive into how artificial intelligence is transitioning from experimentation to essential infrastructure for growth. While 84% of retail executives express optimism about generative AI (GenAI), only a fraction are seeing tangible results—a gap this report seeks to bridge with data, case studies, and actionable insights.
Key Findings: From Optimism to Operational Impact
Despite strong enthusiasm, retail lags other industries in actual AI adoption and P&L impact. The report identifies a disconnect: retailers want AI to deliver growth, but many don’t know where to begin or how to prioritise investments. The study provides a structured framework to identify high-ROI use cases and build AI capabilities without overreliance on hype.
AI’s Immediate Value: Customer-Centric Transformation
AI is proving most valuable in enhancing the customer experience. GenAI is driving smarter product descriptions, customer support automation, and multilingual chatbot solutions. A case study on a 300-store retailer showed that AI-enabled personalisation led to a 47% uplift in revenue from contacted customers, 40% sales growth for sales teams, and a 45% increase in marketing clickthrough rates.
Retailers are encouraged to:
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Start with quick-win use cases like GenAI-generated product pages.
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Establish cross-functional teams to deploy one impactful initiative per quarter.
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Pilot more advanced applications like AI-driven bespoke customer journeys and agentic AI.
Productivity and Profit Gains Through Integration
Beyond customer-facing benefits, AI’s real power lies in systemic optimisation. GenAI and machine learning (ML) are helping retailers:
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Forecast more accurately.
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Integrate pricing, inventory, and marketing decisions.
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Bridge organisational silos to unlock cross-functional efficiencies.
A notable example: a multi-billion-dollar retailer used the AlixPartners AI Profit Engine to align marketing, pricing, and inventory—resulting in exceeding quarterly income targets by 23%.
Retail’s Next Frontier: AI-Enabled Business Models
AI isn’t just enhancing operations—it’s enabling new revenue streams. Retailers are using GenAI and ML to build:
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AI-powered marketplaces (e.g., Amazon, Alibaba, Walmart).
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Retail media networks using real-time ad targeting.
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Virtual commerce environments via AR/VR and AI agents.
Retailers who adopted these models saw double-digit sales growth and an 8% boost in profitability—outperforming peers who didn’t by over 4 percentage points annually.
Foundations First: Tech, Data and Governance
Retail’s transformation hinges on upgrading legacy systems and breaking down data silos. The report emphasises that “rubbish in = rubbish out”: AI is only as strong as the data behind it. Key recommendations include:
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Embedding data scientists into business teams.
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Treating data as a shared, strategic asset.
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Building modular tech architectures for agility.
Cybersecurity and Ethical Imperatives
AI introduces not just efficiencies but risks—particularly in cybersecurity, privacy, and public trust. With cyberattacks now cited as the top threat by 46% of retail leaders, retailers must:
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Implement AI governance frameworks.
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Increase transparency in AI use.
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Address vulnerabilities from legacy systems and third-party providers.
Leading Through the AI Era: A Human-Centric Challenge
AI success is not just about technology—it’s about people. With 55% of CEOs struggling to prioritise and 32% doubting their company’s adaptability, the report underscores the importance of:
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Executive sponsorship.
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Scalable pilot programs.
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Upskilling employees across all levels.
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Creating safe spaces for AI experimentation.
A Call to Action
Retailers are at a tipping point. Those who align AI initiatives with business goals, invest in strong data foundations, and lead with empathy and agility will shape the next generation of customer experience and operational excellence. As the report concludes: “AI transformation demands more than digital acumen—it requires a cultural shift.”
In a landscape where margins are tight and expectations are high, Beyond the Hype is more than a report—it’s a roadmap for sustainable growth in a retail world being redefined by intelligence.
Source: AlixPartners / WRC
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