Where Is Retail on the AI Journey? 

AI in retail is no longer just a buzzword or a futuristic idea; it is  here, making waves, and reshaping how we shop and run stores every day. At Mergen, as a proud ServiceNow partner, we see firsthand how AI technology is helping retailers innovate, streamline, and grow. But how mature is AI adoption really in retail right now? Let’s take a quick, practical look.

The AI Excitement—and the Reality Check

Retailers are diving headfirst into AI. Many have launched hundreds of AI projects across their businesses in the past year. That’s impressive, right? Yet, here’s the catch while adoption is booming, the actual maturity level of AI in retail has dropped. It means retailers are racing ahead with AI faster than they can build the foundations needed to get the full value.

What does that foundation look like? Having a clear, shared vision is key. Imagine AI efforts scattered all over the place without a big-picture plan. That’s a recipe for wasted potential and frustration. We’ve seen that only 40% of retailers say their AI strategy is really tied to their overall business goals.

The People and Governance Puzzle

So, why the struggle? First, talent. You need smart people who know AI inside and out, but only about 3 in 10 retailers feel they have the right team in place. Plus, training existing staff to work effectively with AI tools can’t be overlooked.

Then there’s data governance. It might sound boring, but without strong rules and frameworks around data and AI use, projects can stall or introduce risks. Less than half of retailers have made solid progress here so far.

The Bright Spot: Agentic AI

Here’s some good news, retailers who use “agentic AI” are seeing real business wins. Agentic AI isn’t just about automation; it helps make smart decisions independently and speeds up workflows. Retailers using this tech saw more than double the rate of gross margin improvement compared to those who don’t.

What This Means for Retailers Today

If you’re in retail and thinking about AI, it’s time to:

• Align AI projects with your bigger business goals.
• Invest in talent—hire, train, and grow your AI capabilities.
• Build strong governance to keep projects safe and scalable.
• Explore agentic AI solutions for faster, smarter operations.

At Mergen, we make this journey smoother using ServiceNow’s powerful AI platform. Whether it’s connecting your stores, enhancing customer experiences, or optimizing operations, we help bring focus and results to your AI efforts.

If your retail business is ready to move from AI ideas to real impact, let’s talk. Together, we can turn AI challenges into a competitive advantage.

Reference: https://www.servicenow.com/blogs/2025/state-ai-maturity-retail