75% of Retailers Bet on AI, Fewer Than 10% Feel Ready

By James Calloway

Seventy-five percent of retailers named AI among the technologies most likely to shape grocery over the next three to five years, yet fewer than 10 percent said their organizations felt very prepared to adopt emerging technologies. That gap comes from LOC Software-sponsored research on retailer technology trends, cited in an analysis published by The Shelby Report on November 13, 2026, drawing on Groceryshop 2026 and the Rethink Retail AIR Retail Virtual Summit.

The central argument: retailers are asking the wrong question about the store of the future. The question is not what the store will look like, but what shoppers will need it to do.

Where does the grocery trip now begin?

The trip starts long before a shopper enters the store. Consumers move among search, social media, retailer apps, websites and generative AI to decide what to cook, what to buy and where to shop.

PDG Insights' March 2026 U.S. Diverse Consumer Pulse Study quantifies the shift among general-population consumers who had used GenAI for grocery shopping or meal preparation:

• 63 percent used it for meal or recipe ideas
• 46 percent used it to create a grocery list
• 36 percent used it to find ways to save money
• 29 percent used it to help decide what to buy
• 26 percent used it to help decide where to shop

The first "aisle" a shopper visits may be a conversation with an AI assistant that turns a budget, dietary need, family preference or cultural tradition into a meal plan and a shopping list. That raises execution pressure on the store: if an AI-generated plan says an item is available, the shelf must deliver, and any substitution must make sense.

What does value mean beyond price?

Affordability remains foundational, and any future-facing experience that adds cost or complexity will miss the moment. But retail leaders increasingly describe value as a broader equation: price plus quality, convenience, curation, discovery, experience and time. Scan-and-go, accurate pickup and dependable delivery matter because they return time to shoppers. Convenience consumers cannot afford is not truly convenient, and the lowest price alone does not guarantee loyalty when the trip frustrates or products are missing.

Why will the most important AI be invisible?

Robotics and automation drew 61 percent in the LOC Software research on technologies shaping grocery through 2031. Yet the most consequential AI may work behind the scenes, on forecasting, inventory, ordering, price optimization, personalized offers, labor scheduling and loss prevention. Shoppers may never see the model, but they will experience the results.

The AIR Retail Summit added an operational caveat: AI capability is not the same as business value. An insight must reach the right person, in the right workflow, in time to act. Otherwise, AI creates more alerts and noise. The practical question for retailers, especially independents, is not "Where can we add AI?" but "Where does friction exist, and can technology meaningfully remove it?"

How must personalization earn trust?

The AIR Retail discussion returned repeatedly to trust, transparency and the value exchange behind data sharing. Consumers may share more when the benefit is clear, the use is understandable and participation is permission-based — and they may increasingly let personal AI agents decide what information reaches retailers. Personalization should also move beyond the next coupon into assortment, dietary guidance, meal solutions, language, wellness support and culturally relevant discovery. Weak product attributes or incomplete data on diverse households can cause AI recommendations to miss the very shoppers they target.

What job can only the physical store do?

As digital tools improve at planning and execution, the store must improve at inspiration and problem-solving. Foodservice remains a major opportunity, turning the store from a place that sells ingredients into a place that solves occasions. Sampling, demonstrations and merchandising build confidence in ways a search result cannot. Associate-facing AI can bring product information and inventory visibility into the conversation, so staff answer questions on ingredients, dietary attributes or product location without leaving to check another system.

There is no single winning format. In the LOC Software research, cost and ROI (59 percent) and ease of integration (50 percent) ranked among the top considerations influencing technology purchases. For one retailer, the smartest investment may be inventory forecasting; for another, stronger foodservice or better product data. The winners will not be the retailers with the most technology, but the ones that use it most intentionally to create value, relevance and trust.