Many retail companies around the world are not yet ready to expand their use of artificial intelligence (AI), despite recognizing its importance to their future competitiveness, according to new research.
of TCS Global Retail Outlook 2026 Research reveals that most retailers limit the use of AI beyond basic tools, and only a minority use advanced AI systems for autonomous decision-making.
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The study, based on responses from more than 800 senior retail executives across 18 countries, found that 85% of retailers have yet to begin implementing multi-agent AI systems that enable more intelligent and autonomous operations.
Most retailers are instead focusing on front-line AI applications such as chatbots and virtual assistants, with 51% citing these foundational technologies as their current primary AI initiative.
Research shows that only 24% are currently using AI for autonomous decision-making, suggesting that real-time AI capabilities and automation remain limited in this area.
Industry analysts say AI adoption is often superficial.
Retailers are recognizing the potential benefits of enterprise-wide AI, including more adaptive pricing, improved supply chain predictions, and personalized customer experiences, but are in the early stages of embedding such tools deeply into their business processes.
Employee skills and data utilization challenges
This research highlights significant organizational barriers to widespread adoption of AI. Lack of employee skills stands out as a major concern, with only 33% of retailers seeing digital literacy programs as a way to transform and upskill.
Many companies also struggle to use existing data effectively. Less than half reported having the ability to use loyalty insights to inform pricing, promotions, or strategic decisions.
Retail executives have identified financial pressures and talent shortages as key obstacles heading into 2026. The findings show that without stronger investment in skilled talent and supporting infrastructure, retailers may struggle to realize the full potential of AI to drive growth and resilience.
Strategic priorities for industry growth
Despite the perceived gap, AI remains one of the top strategic priorities for retailers as they plan for the coming years.
In addition to cost optimization, executives ranked the ability to sense market changes in real-time and the ability to leverage adaptive AI to make decisions as critical to competitive advantage through 2026.
Companies that move beyond isolated AI experiments to integrated, enterprise-wide intelligence may be well-positioned to respond quickly to changing consumer demands and market conditions.
The findings echo research from other industries that shows retailers continue to explore how best to move early AI projects into value-creating large-scale systems.
As digital transformation continues and the use of generative AI expands in areas such as inventory forecasting and customer service, retailers are under pressure to build capabilities beyond their current limited deployments.
