A new study by Tata Consultancy Services (TCS), a global leader in IT services, consulting, and business solutions operating a service delivery centre in Ireland, reveals that while AI ranks among the top enablers for retailers, executives have made limited progress in deploying AI at scale.

The study reveals only 24% of retailers currently use AI for autonomous decision-making, while 85% have not yet begun implementing – or are even planning for- multi-agent AI systems. What's more, to address the most strategic objectives—such as driving profitable growth and improving customer experience and loyalty—retail executives consider AI initiatives their most or second-most preferred tactic. And the more financially successful a retailer is, the more AI initiatives they have in the pipeline.

Based on responses from more than 800 senior retail executives across 18 countries, including Ireland and five major subsectors, the study highlights the operational pressures currently shaping retail transformation. Executives identify the ability to sense market shifts in real time and utilising adaptive AI-powered decision-making among their top priorities for the next one to two years, a signal that retailers increasingly see digital intelligence and agility as inseparable.

Despite AI's strategic importance, deployment remains concentrated around customer-facing applications. 51% of retailers are only just now making basic AI technologies, such as chatbots and virtual assistants, their top AI initiative, suggesting that adoption of advanced intelligence capabilities in retail remains at a superficial level. However, the study suggests these more basic tools will not transform retail economics without deeper integration across merchandising, supply chain, and pricing.

Krishnan Ramanujan, President of TCS's Consumer Business Group, said, "Retailers today are united in their belief that AI will define the next era of competitiveness, yet most have only scratched the surface of its potential. Our Global Retail Outlook reveals that the true opportunity lies in shifting from isolated experiments to pervasive intelligence embedded across the value chain. The retailers that master this transition will become more perceptive enterprises, capable of learning, adapting, and responding in real time. TCS is prepared to address the gaps in the value chain and is building AI-led solutions to unlock the next phase of growth for retailers."

The study also reveals that following cost optimisation, AI-powered technologies are ranked among the top essential capabilities for 2026, with the ability to sense market changes and competitor moves in real time and adaptive AI-powered decision-making capabilities ranked #2 and #3 (out of 10) for retailers. In terms of retailers biggest hurdles leading into 2026, the workforce skills gap was near the top of challenges, second only to financial pressures.

Cheenttan Voraa, global head of retail consulting said, "The retail sector is at a defining crossroads. Leaders recognize AI as an essential technology to stay ahead in the next era of competitiveness, yet most organisations remain early in their journey toward true enterprise intelligence. Advancing from siloed use cases to connected, perceptive systems will require bold investments, not only in technology but in AI-savvy talent, along with improved processes and operating models. TCS is committed to partnering with retailers and empowering them to lead in the AI era."

The study indicates that retailers see AI-powered decision-making, faster time-to-market for products and services, and automated workflows among the capabilities that will most significantly impact performance in the near term, surpassing conventional business analytics and intelligence tools. Executives also express strong urgency around cybersecurity and privacy and in the data still locked inside loyalty programs, where fewer than half say they're able to use such information to demonstrate marke...