Artificial intelligence is transforming retail communications, with nearly half of retail businesses already fully integrating AI into customer conversations. This statistic comes from RingCentral’s recent report on AI in retail communications, which reveals that the retail sector leads all industries in AI adoption for customer-facing interactions.
Adoption
Retail businesses are embracing AI across various applications, with 71% to 80% either fully utilizing or actively experimenting with the technology in different areas. This widespread adoption demonstrates a strong commitment to leveraging AI where it directly impacts customer experiences.
Customer conversations represent a key area where AI is making significant inroads. An impressive 49% of retail businesses have fully integrated AI into these interactions, the highest percentage among all industries surveyed. This focus on customer-facing AI applications highlights the sector’s recognition of AI’s potential to improve service quality and personalize customer experiences.
Beyond customer conversations, AI integration extends to other crucial areas of retail operations. The consistency of adoption across multiple use cases suggests that retailers are taking a holistic approach to AI implementation, recognizing its value throughout the customer journey and internal processes.
Prioritizing AI in customer-facing interactions offers several potential benefits for retailers. These may include more efficient handling of customer inquiries, personalized product recommendations, and improved overall customer satisfaction. By leveraging AI to enhance these touch points, retailers can create more engaging and seamless experiences for their customers.
Challenges
However, the rapid adoption of AI in retail communications also brings challenges. As businesses increasingly rely on AI-powered tools, they must remain vigilant about potential security risks and ensure they have measures in place to protect customer data and prevent fraud.
For retail leaders, the message is clear: AI is no longer a future consideration but a present reality in the industry. To remain competitive, businesses must carefully evaluate their current AI strategies and identify opportunities to further integrate this technology into their customer communication channels.
As the retail sector continues to lead the charge in AI adoption for customer interactions, it sets the stage for a new era of personalized, efficient, and data-driven retail experiences. The challenge now lies in harnessing AI’s full potential while addressing associated risks and maintaining the human touch that customers value.
Read the full report, The state of AI in retail communications, today.
Originally published Feb 14, 2025, updated Mar 04, 2025
