Grocers Expect AI to Play an Outsized Role in Their Success, but Budget Constraints and Integration Woes Hamper Large Scale Adoption

New York, NY and Ft. Lauderdale, FL — June 18, 2024 – Incisiv, a next-generation industry insights firm that helps retailers and brands navigate digital disruption, and Wynshop, the leading provider of digital commerce and fulfillment solutions for local store-based retailers, today revealed the findings from Grocery Doppio’s State of AI in Grocery 2024 Report.

Highlights from this year’s report include:

• 86% of grocery C-suite execs say that AI will be a necessity in the future, up from 81% in 2023.
• By 2030 grocers are projected to increase spending on AI by 12x and 84% expect AI to be embedded in most, if not all, of their technologies. However, only 14% of grocers allocated additional dollars to AI in 2024, only 6% scaled their AI projects in the last year, and only 16% are using AI in multiple business areas (a 3% YOY increase).
• Budget availability continues to be the #1 challenge for grocers to scale AI (73%, up from 71% in 2023), followed by technical infrastructure issues (71%) and proof of performance/unclear ROI (66%).
• Despite a rise from 56% to 64% of grocers who believe that AI can have a “high impact” on customer service, more C-suite grocery execs believe in AI’s ability to impact operational efficiency (71% in 2024, up from 53%) than AI’s ability to impact customer service (29% in 2024, down from 47%). 

Based on a survey of 233 senior grocery executives and 1,216 shoppers, Grocery Doppio’s State of AI in Grocery 2024 Report draws insights and expert opinions from senior grocery leaders spanning technology, e-commerce, supply chain, marketing, in-store, and senior leadership roles. The research was done in support of the second annual AI in Grocery Digital Discovery Event, a free online event from June 20-21, highlighting the major AI trends shaping the grocery industry. 

“The grocery C-suite strongly believes that AI can unlock tremendous value,” said Gaurav Pant, Chief Insights Officer of both Incisiv and Grocery Doppio. “However, reality does not meet the hype. It will take time to prove the business case for AI in grocery before we see widespread adoption. ‘Boring’ but high-impact areas will lead the charge.”

“Getting the right infrastructure in place is critical to implementing AI at scale in grocery,” added Charlie Kaplan, Chief Product and Marketing Officer at Wynshop. “Grocers have improved their data management foundation in recent years, but many still lack the tools to integrate data across channels, and then make profitable use of data with AI-based personalization, dynamic pricing, inventory forecasting, and other promising initiatives.”

Grocery Doppio’s second annual State of AI in Grocery Report is one of many resources available on Grocery Doppio, a free, independent source of grocery insights and data designed to help grocers jumpstart, accelerate, and sustain digital growth. Grocery Doppio brings together research-driven grocery content, fact-based observations, and industry expert perspectives, to deliver a monthly performance scorecard that identifies improvement opportunities for grocery retailers. 

To download Grocery Doppio’s “State of AI in Grocery 2024 Report,”.

AI in Grocery Virtual Event

Join the AI in Grocery Digital Discovery Event on June 20 and 21, starting at 12:00 ET, to explore the key findings of the State of AI in Grocery 2024 Report. This free virtual event, hosted by Incisiv, Wynshop, and FMI: The Food Industry Association, offers a unique opportunity to gain insights from industry leaders. Hear from experts at Wakefern, SpartanNash, Lowes Foods, Microsoft, Amazon, Instacart, Flybuy, and more as they discuss the transformative AI trends and strategies disrupting the grocery sector. Click here to register.

About Incisiv 

Incisiv is a next-generation industry insights firm that helps retailers and brands navigate digital disruption in their industry. Incisiv offers consumer industry executives responsible for digital transformation a trusted platform to share and learn in a non-competitive setting, and the tools necessary to improve digital maturity, impact, and profitability. More information is available at www.incisiv.com. 

About Wynshop 

Wynshop is an ambitious team of digital innovators helping grocers and other local store-based retailers grow wildly successful online businesses. Wynshop’s easy-to-use digital commerce platform enables efficient in-house picking, reduces fulfillment costs, and uses advanced AI to help retailers personalize the entire digital shopping experience and remain profitable. Learn more at  www.wynshop.com.

Media Contact:

Laurel Getz
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203.767.5963