Insights
- Retail and hospitality companies expect their generative AI spending to increase 88% in 2024.
- Around 80% of retail and hospitality have started their generative AI journey.
- Retail and hospitality companies are more optimistic about generative AI’s impact on content and creativity that the overall trend.
- More retail and hospitality companies are concerned about ethics, bias, fairness, and safety than the overall trend.
- Retail and hospitality workforces are less confident about their workforces’ readiness for generative AI.
- 20% of retail and hospitality reported the board of directors as the primary sponsor of generative AI initiatives.
- The board of directors take the lead on generative AI policy at retail and hospitality companies.
This year will bring further developments in generative AI, as organizations familiarize themselves with this transformative technology. So where are they now?
Through this study we aimed to uncover how companies use generative AI, how much they spend on it, how it’s being rolled out, and where it makes an impact. We looked at 3,000 companies across 12 industries:
- Automotive
- Consumer packaged goods
- Energy, mining, and utilities
- Financial services
- Healthcare
- High tech
- Insurance
- Life sciences
- Logistics and supply chain
- Manufacturing
- Retail and hospitality
- Telecommunications
Many companies told us they are already spending significant sums of money — and are set to spend more this year. However, this pattern isn’t the same across sectors. In this data book, we highlight how retail and hospitality compare with the rest of the pack. All data used in this data book are from Generative AI Radar North America, Europe, and APAC.
Generative AI spending is growing for retail and hospitality
Generative AI spending by retail and hospitality companies expected to grow rapidly in 2024
Retail and hospitality generative AI spending growing, albeit slower than many — Retail and hospitality companies expect their generative AI spending to increase 88% in 2024.
Retail and hospitality generative AI spending
Expected generative AI spending growth in 2024 by industry
Most retail and hospitality companies already use generative AI
80% of retail and hospitality have started their generative AI journey
Retail and hospitality companies are adopting generative AI — Only 19% of retail and hospitality companies have not started their generative AI journeys. However, only 5% of these companies create value with their use cases, much lower than the overall trend (13%).
Generative AI adoption by proportion of respondents
User experience and content generation drive generative AI enthusiasm
Retail and hospitality industries expect more positive impact on content generation than the overall trend
Retail and hospitality companies are more optimistic about content and creativity that the overall trend — A higher proportion of retail and hospitality (29%) report generative AI will have a positive impact on content generation and creativity than the overall trend (19%). Fewer of these companies expect positive impact on product development than the overall trend.
Where companies expect generative AI to have the most positive impact
Ethics and privacy hold back adoption
More retail and hospitality companies are concerned about ethics, bias, fairness, and safety than the overall trend
29% of retail and hospitality companies reported ethics, bias, and safety concerns as a hurdle to adoption — This is much higher than the overall trend (21%). These challenges ranked as high as data privacy and security for retail and hospitality.
Challenges in implementing generative AI
Confidence in managing generative AI systems
Retail and hospitality companies are less confident in managing generative AI systems than the overall trend
Retail and hospitality management confidence is level-headed — Retail and hospitality companies are less positive and more neutral about managing generative AI than the overall trend.
Confidence in the ability to manage generative AI by proportion of respondents
Workforce generative AI readiness
Retail and hospitality workforces are less prepared for generative AI
Even-keeled confidence in workforce readiness — Only 49% of retail and hospitality companies reported positive sentiment about their workforces’ generative AI readiness. However, a higher proportion of these same companies reported a neutral outlook on workforce readiness than the overall trend.
Sentiment on workforce readiness to adopt generative AI by proportion of respondents
Primary sponsor of generative AI initiatives
Generative AI sponsorship comes from the top
The board of directors is the most popular sponsor of generative AI at retail and hospitality companies — 20% of retail and hospitality reported the board of directors as the primary sponsor of generative AI initiatives.
CIOs are less popular — Only 17% of retail and hospitality companies reported that the chief operating officer (CIO) sponsors generative AI initiatives, much less than the overall trend (29%).
Primary sponsor of generative AI initiatives by proportion of respondents
Primary generative AI policymaker
Policy comes from on high in retail and hospitality
The board of directors take the lead on generative AI policy — 29% of retail and hospitality companies report the board of directors as the primary policymaker, significantly more than the overall trend (22%).
Primary generative AI policymaker by proportion of respondents
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