New research shows that many retail businesses worldwide are not yet ready to scale up their use of artificial intelligence (AI), despite acknowledging its importance for future competitiveness.
The TCS Global Retail Outlook 2026 study reveals that most retailers have limited AI use beyond basic tools, and only a small share are using advanced AI systems for autonomous decision-making.
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AI adoption slow beyond basic tools
The study, based on responses from more than 800 senior retail executives across 18 countries, found that 85 % of retailers have not yet begun implementing multi-agent AI systems that enable more intelligent and autonomous operations.
Most retailers instead focus on frontline AI applications such as chatbots and virtual assistants, with 51 % citing these basic technologies as their leading AI initiative today.
Only 24 % currently use AI for autonomous decision-making, the research shows, suggesting that real-time AI capabilities and automation remain limited in the sector.
Industry analysts say AI adoption remains superficial in many cases.
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By GlobalDataRetailers recognise the potential benefits of enterprise-wide AI, including more adaptive pricing, improved supply chain forecasting and personalised customer experiences, but are still in the early stages of embedding such tools deeply into business processes.
Workforce skills and data use challenges
The study highlights significant organisational barriers to broader AI adoption. A lack of workforce skills stands out as a major concern, with only 33 % of retailers seeing digital literacy programmes as a way to achieve transformation and upskilling.
Many companies also struggle to use existing data effectively; fewer than half reported ability to leverage loyalty insights for pricing and promotions or to inform strategic decisions.
Retail executives identified financial pressures and talent gaps as key obstacles ahead of 2026. The findings indicate that without stronger investment in skilled talent and supporting infrastructure, retailers may struggle to unlock the full potential of AI to drive growth and resilience.
Strategic priorities for industry growth
Despite the gaps identified, AI remains among the top strategic priorities for retailers as they plan for the next few years.
Beyond cost optimisation, executives ranked ability to sense market changes in real time and adaptive AI-powered decision-making capabilities as essential for competitive advantage by 2026.
Firms that move beyond isolated AI experiments towards integrated, enterprise-wide intelligence may be better positioned to respond quickly to shifting consumer demand and market conditions.
The findings echo other industry research showing that retail continues to explore how best to transition early AI projects into value-creating, large-scale systems.
With ongoing digital transformation and growing use of generative AI in areas like inventory forecasting and customer service, retailers are under pressure to build capabilities that go beyond current, limited deployments.
