What: A study by First Insight reveals a significant divide between CEOs and management teams over the perceived value of AI technology, particularly in predictive analytics. CEOs are notably less convinced of AI's top applications compared to their management teams.

Why it is important: This discrepancy is critical as it signals a potential obstacle in adopting and integrating AI technology effectively within organisations. Aligning perceptions and priorities regarding AI's capabilities and applications is essential for harnessing its full potential to drive innovation, operational efficiency, and competitive advantage in the retail sector.

The "AI Strategy Divide: Bridging the Perception Gap in Retail Leadership" report from First Insight highlights a strategic disconnect between retail CEOs and their management teams concerning artificial intelligence (AI) usage and expectations. While management teams see enhanced predictive analytics as a key AI application for improving demand forecasting, inventory management, and stock optimisation, CEOs are less likely to prioritise this, showing a stark contrast in views on AI's value. The study also points out different priorities between the groups, with CEOs focusing more on AI for cost savings and customer experience, whereas management teams emphasise innovation. Additionally, concerns about infrastructure, return on investment, and data security are prevalent, though with varying degrees of emphasis. First Insight CEO Greg Petro emphasises the need for retail leaders to close this gap, advocating for informed, agile decision-making to fully leverage AI's potential in the industry.

Study shows divide between CEOs and management teams over AI tech use