Artificial intelligence (AI) is considered a key technology of the future in European retail. However, according to the current study by the London market research company Retail Economics with the Swedish technology provider Voyado, there is still a clear gap between strategic ambition and practical implementation in retail.
The report “The State of AI in European Retail Marketing & E-Commerce” makes it clear that the industry is in a transition phase in which initial progress is visible, but structural challenges continue to slow it down.
“The next two years represent a turning point as AI shifts from experimentation to competitive necessity. Retailers are on a journey: most have started testing and deploying AI, but few have reached a stage where they are already delivering consistent commercial returns,” said Richard Lim, CEO at Retail Economics.
Differences in the use of AI
The importance of AI is no longer questioned by most companies. Rather, there is agreement that data-driven technologies will be crucial for competitiveness, efficiency and customer satisfaction in the future. Nevertheless, the study shows that the level of maturity varies greatly. While some pioneers have already deeply integrated AI into their processes, a large proportion of companies are still in the experimental stage and are testing individual use cases.
The use of AI is particularly widespread in marketing and e-commerce where direct effects on sales and customer loyalty are visible. Personalized product recommendations, automated campaign control and data-based analyzes of customer behavior are among the most important areas of application. AI is also increasingly being used in pricing and demand forecasting. Companies are already reporting measurable improvements in these areas, for example through higher conversion rates or more efficient use of marketing budgets.
Hurdles in implementing AI
At the same time, the study identifies key obstacles that prevent broader scaling. First and foremost are problems with the database. Many companies struggle with incomplete, poorly structured or isolated data sets, which make it difficult to use powerful AI models. In addition, there are internal blockages against AI and a lack of qualified specialists, which slows down the development and implementation of corresponding solutions. The integration of new technologies into existing IT systems often proves to be complex.
In Europe, regulatory requirements and data protection also play an important role, making additional adjustments necessary.
AI as a strategic pillar
In addition to technological questions, the study also focuses on organizational aspects. Successful companies differ primarily in their internal structure. They strategically anchor AI at management level, promote collaboration between specialist departments and IT and rely on agile working methods. At the same time, they invest specifically in further training in order to build up the necessary skills in their own company. These factors prove crucial to not only testing AI, but also scaling it sustainably.
Conclusion: Competition for the best AI solutions is increasing
Looking to the future, the study paints a clear picture: the importance of AI in European trade will continue to increase. Generative AI in particular opens up new possibilities, for example in the automated creation of content, in customer service or in the even more precise personalization of offers. Companies that use these technologies early and effectively are likely to secure long-term competitive advantages.
AI is no longer an option in European retail, but a necessity. The decisive factor will be how quickly companies manage to overcome existing hurdles and develop scalable solutions from initial pilot projects. The competition for data-driven business models has long since begun.
