75% of retailers say AI Agents will be essential to compete

Tahawul Tech

15-04-2025

Retailers are feeling pressure as costs mount, customer expectations rise, and technology gets increasingly complex, according to a new report from Salesforce, but AI agents offer a path forward.
In fact, three out of four retailers globally believe AI agents, a type of artificial intelligence (AI) that can autonomously take action across business systems, will be vital for beating the competition within a year.
Retailers face pressure from all sides
Rising customer acquisition costs and mounting returns are squeezing retailers' margins as they also navigate inflation, competition, and consumers' evolving behaviours and preferences.
To efficiently serve customers across vast and expanding touchpoints, retailers' top two strategies are AI and unified commerce, a concept Salesforce champions as a way to drive revenue without adding operational costs.
'When retailers connect their sales channels, customer data, and operations in one platform, they create seamless shopping experiences both online and in-store', said Michelle Grant, Director of Retail Strategy and Insights at Salesforce. 'This unified approach boosts productivity and drives growth throughout the business'.
Meanwhile, the shopper journey gets increasingly complex
Consumers' shifting behaviours lead to increasingly complex shopping journeys. While physical stores remain vital, their purchase share is declining — from 45% in 2024 to a projected 41% by 2026. Digital spending is fragmenting across a constellation of marketplaces, retailer websites, brand sites, and delivery apps, rather than consolidating into a single channel.
Retailers see AI agents as a way forward
Retailers are deepening their commitment to AI, with 76% saying they're increasing investment over the next year. As adoption continues, customer service emerges as retail's top agent use case. Here, agents automatically respond to inquiries, track orders, and manage returns any time, day or night, so human reps can focus on higher-value interactions.
Velia Carboni, CIO of Salesforce customer SharkNinja, described Agentforce, the agentic layer of the Salesforce Platform, as 'key to helping us build a community that keeps consumers coming back'.
Beyond customer service, retailers anticipate agents to extend across many other tasks and departments — from optimising websites and marketing campaigns to training store associates and managing inventory.
'AI agents represent the next wave of retail AI innovation — digital labour that promises to reshape how retailers scale their workforces, serve and market to customers, and streamline operations', said Grant.
AI has huge potential in the Middle East's booming retail sector, led by the UAE and Saudi Arabia. The UAE retail market is expected to reach a value of $61.89 billion by 2030, up from $44.38 billion in 2024[i], while retail sales in Saudi Arabia are predicted to reach $161.4 billion by 2028[ii].
'AI, and particularly agentic AI, is set to play an increasingly important role in the region's dynamic and fast-growing retail sector', said Mohammed Alkhotani, Senior Vice President and General Manager, Salesforce Middle East. 'With customers becoming ever-more demanding across multiple touch points, it's vital that retailers can refine and utilise their data while also having a full view of their customers across all interactions, and the ability to communicate with them seamlessly. I'm optimistic that agentic AI will empower retailers in the Middle East to compete and thrive while also ensuring the retail sector grows to its full potential in line with national strategies'.
Unified commerce boosts AI capabilities
AI agents need access to data across retail systems to work effectively. With better, more unified data, agents can provide more personalized and real-time responses. But many retailers' systems together are disconnected, creating challenges for employees and shoppers alike.
81% of retailers say inefficient processes and technology drain store associate productivity.
Meanwhile, 49% of shoppers have abandoned purchases due to friction in the ordering process.
Fortunately, 86% of retailers have unified commerce initiatives underway. By connecting cross-channel and cross-departmental operations on a single platform, unified commerce improves efficiency and shopper experience — and helps power AI.
Shoppers show readiness for the AI era
The retail transformation isn't one-sided. Consumers are already exploring AI in their shopping journeys, with 39% of shoppers — and 54% of Gen Z — using AI for product discovery. Gen Z shoppers are 10x more likely than baby boomers to say they frequently use AI this way.
For AI agents specifically, shoppers show strong interest in optimising loyalty points, managing returns, and more. Shoppers' #2 agent use case — customer service — aligns with retailers' own priorities. Younger generations are more open to agents taking initiative: 63% of Gen Z shoppers are interested in agents purchasing items on their behalf.
For shoppers to embrace AI agents making decisions on their behalf, trust is essential. When asked what would increase their trust in agents, shoppers ranked these factors highest:
Data privacy and security protections Ability to easily turn it off/on Require approval before any purchase Transparency over how data is used Available human customer service backup
'The data is clear: retailers and shoppers are both moving toward an AI agent future', said Grant. 'But success depends on addressing both sides of the equation — building the connected technology foundation retailers need while delivering the trust and transparency shoppers demand'.
More information:
Read the full Connected Shoppers Report
Learn more about Salesforce Retail Cloud
Image Credit: Salesforce