Use of AI in grocery stores to grow 400% by 2025

Executives think artificial intelligence could eliminate 18% of store associate positions, 73% of store tasks and 53% of shopper queries.
AI Grocery Doppio
Through the use of AI, the grocery industry is estimated to save $58.4 billion in inventory management by 2025. / Photo: Shutterstock

Artificial intelligence will create $113 billion in operational efficiency and new revenue, and nearly three-quarters of grocery technology executives believe AI will be incorporated into most of their software by 2025, according to a report by data analytics firm Grocery Doppio. 

The study of new technologies, conducted in partnership with FMI-The Food Industry Association, is based on interviews with 152 grocery executives. The research shows that implementation of artificial intelligence in supermarkets is expected to grow by 400% before the end of next year and could eliminate 18% of store associate positions, 73% of store tasks and 53% of shopper queries.  

AI has huge potential to transform execution of omnichannel strategies, but only 13% of survey respondents said they’re using the technology in more than one area of the store. Seventy-four percent said they are looking for AI capabilities when considering new software.  

These efforts are projected to generate $113 billion in value, with inventory management savings accounting for more than half at an estimated $58.4 billion, Grocery Doppio's study said. Advances in product assortment and pricing optimization through AI will save grocers $21.1 billion in merchandising costs, and another $15.7 billion is projected to be generated on marketing. AI will also save grocers $13.8 billion in store operation costs, $2.1 billion in customer service and $1.9 billion in IT/technology, according to the report. 

AI could have the biggest impact on the supply chain, according to 83% of survey respondents. Another 81% cited merchandising and 72% named marketing as areas where AI will have the most impact.

Grocery Doppio's report also noted that automation will be driven by AI, and the change is coming soon, with 18% of executives saying it will replace current tasks. Eighty-one percent of survey respondents said automation will take place in the supply chain. Another 43% said the technology will augment tasks, while 39% believe it will automate tasks. 



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