What: A significant number of retail businesses are adopting generative AI technologies but are not effectively integrating their data, a crucial step for maximizing the technology's potential, according to a Salesforce study.

Why it is important: The study highlights a gap between the enthusiasm for generative AI in the retail sector and the infrastructure needed to support it. Proper data integration is essential for generative AI to produce accurate and effective outputs, such as personalized shopping experiences and product recommendations. Without this, retailers risk ineffective AI implementations that could hinder customer relationships and loyalty.

Salesforce's report, conducted with the Retail AI Council, reveals that while 93% of retailers use generative AI for tasks like personalization and have dedicated AI budgets, nearly half struggle with making their data accessible and connecting data silos. This disconnect can lead to subpar AI performances, emphasizing the importance of a unified data strategy. As the retail industry competes in a fast-paced market, those who can effectively integrate their data with AI technologies stand to gain a significant advantage, with projections suggesting a USD 9.2 trillion impact on retail by 2029. The urgency for retailers to address data integration challenges is clear, as more employees and business functions rely on AI for customer service, marketing, and operations.

A lot of retailers are bungling generative AI, report says