Retailers Are All-In on AI - But Disconnected Data Threatens Progress
"Retailers are leveraging AI to deliver more adaptive, personalized customer experiences powered by high-quality, unified customer data,' said Tapan Patel, research director at IDC.
The survey of 1,000 retail professionals across marketing, IT, data and executive leadership reveals that 45% of retailers are already using AI daily or several times per week, and 97% plan to maintain or increase their AI investment in the coming year. However, only 11% say they're fully prepared to deploy AI tools at scale.
'Retailers believe in AI's potential to drive loyalty and lifetime value — but belief alone won't close the gap between ambition and execution,' said Tony Owens, CEO of Amperity. 'What's needed is unified, actionable customer data - regardless of where it resides. With Amperity's patented identity resolution, retailers can unify data without moving it, transforming fragmented records into complete customer profiles that fuel AI and measurable business results.'
Customer-Facing AI: The Missed Opportunity
While 63% of retailers believe AI will improve customer loyalty and 65% expect it to increase customer lifetime value, only 43% are currently using AI in customer-facing applications such as personalization, chatbots or tailored marketing experiences. In fact, just 23% are using AI in production to resolve customer identities or prepare data for marketing use, indicating significant untapped potential in customer engagement strategies.
CDPs Are Accelerating AI Maturity
Retailers with a customer data cloud (CDC) aren't just slightly ahead - they're moving at a different pace entirely:
60% of CDP-equipped retailers use AI daily or several times per week (vs. 29% without a CDP)
35% use AI in production to prepare data for marketing or analytics (vs. 9% without a CDP)
22% report full AI adoption across multiple business units (vs. 10%)
These retailers are also far more confident in their ability to understand and act on customer behavior, reinforcing the CDP's role as a critical enabler of enterprise AI strategy.
'This survey highlights a pivotal shift in retail: AI is moving decisively from experimentation to scaled execution. Retailers are leveraging AI to deliver more adaptive, personalized customer experiences powered by high-quality, unified customer data,' said Tapan Patel, research director at IDC. 'Retailers who integrate AI into core workflows—across supply chain, merchandising, and engagement—are setting the new standards for customer experience in an increasingly dynamic market.'
Data Gaps and Technical Barriers Persist
Despite high levels of optimism, the report reveals several key barriers:
58% of respondents say their customer data is fragmented or incomplete
46% cite high costs of AI tools as a top challenge
35% note limited technical expertise
Only 21% are 'very confident' in their ability to understand and act on customer data.
Amperity helps retailers close the gap between AI ambition and execution.
By unifying fragmented customer data, resolving identities with precision, and making insights accessible across the business, Amperity gives retailers the AI-ready foundation they need to move faster and compete smarter. Built for enterprise scale and privacy-conscious activation, Amperity's Customer Data Cloud turns data into a growth engine—powering personalized experiences, smarter decisions, and measurable ROI.
Get the full 2025 State of AI in Retail report to learn how leading retailers are using customer data to close the gap between AI potential and business results.
About Amperity
Amperity's Customer Data Cloud empowers brands to transform raw customer data into strategic business assets with unprecedented speed and accuracy. Through AI-powered identity resolution, customizable data models, and intelligent automation, Amperity helps technologists eliminate data bottlenecks and accelerate business impact. More than 400 leading brands worldwide, including Virgin Atlantic, Dr Martens, Wyndham Hotels & Resorts and Reckitt rely on Amperity to drive customer insights and revenue growth. Founded in 2016, Amperity operates globally with offices in Seattle, New York City, London, and Melbourne. For more information, visit amperity.com or follow us on LinkedIn, X, Facebook and Instagram.
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