New research from Alteryx has found that AI and analytics automation are significantly enhancing the strategic value and job satisfaction of data analysts within the retail sector.
According to the "2025 State of the Data Analyst" report, compiled by Alteryx after surveying 280 analysts across retail and consumer goods globally, 93% of respondents said they have experienced a notable increase in the strategic importance of their role over the past year. This trend has been linked to significant investments in AI and automation within the industry.
The report reveals that 89% of retail data analysts attribute an improvement in job satisfaction to the deployment of AI, while 86% believe analytics automation has bolstered their roles and helped retailers maintain competitiveness.
A substantial proportion, 92%, believe that acquiring skills in AI and automation is essential for continued career development, underlining the growing importance of data-driven technologies in optimising retail operations. The survey also highlights that 53% of respondents feel AI solutions have saved them time, allowing greater focus on innovative tasks instead of routine processes.
Benefits and expectations
The findings show that over a third (39%) of retail analysts feel that the use of AI has exceeded their initial expectations during the past year. This optimism extends beyond personal benefits and into broader business impact, as automation provides them with more time to develop new ideas and streamline operational efficiency.
Despite the positive impact, the report also outlines ongoing challenges within the sector. Specifically, the majority of retail data analysts continue to rely on older, manual methods for managing complex data. Seventy-seven percent say they still use spreadsheets such as Excel and Google Sheets for data cleansing and preparation, tasks that consume six to ten hours each week for 39% of those surveyed.
The persistence of these processes is viewed as a major obstacle to achieving the full potential and value of AI in retail. Nearly half (48%) of respondents noted that faster problem-solving is a priority, but the time spent on manual data preparation hinders this objective. This, in turn, limits the agility retailers require to keep pace with shifting market demands and changing customer expectations.
Technology fragmentation
The research also explores the diversity of tools used for analysis in the sector. Seventy-eight percent of data analysts report using between three and ten different software platforms regularly for preparing and analysing data. When asked about their preferences, 69% would like to reduce this number to between one and four tools, suggesting a clear desire for more streamlined technology solutions.
The strategic implications of slowing down data-driven projects through fragmented or outdated processes are also a key concern. As analysts attempt to integrate data for use in AI and automation, the use of multiple platforms can introduce delays and complexity, ultimately affecting the speed at which businesses can act on insights.
Industry context and commentary
Looking ahead, technology spend in the retail sector is forecast to experience sustained growth. PwC predicts that annual retail technology expenditure will increase by 10% each year until 2028, with a substantial portion dedicated to AI solutions. Alteryx's Chief Product Officer, Ben Canning, commented on the findings, stating:
"PwC estimates that retail technology spending is set to grow by 10% each year to 2028, a significant increase compared to previous years. With so much of this increased spend being channelled into AI, retail leaders can't afford to ignore these findings. Data analysts are emerging as pivotal team members, using AI and automation to build the highly personalised journeys that customers love. However, friction from outdated data processes risks undermining this progress and making it harder for retail organisations to realise the full benefits of AI and automation. Retailers that modernise how data is processed and managed will be best positioned to unlock AI's full potential and gain a critical edge in an increasingly competitive market."
The survey was conducted by Coleman Parkes with respondents from the Americas, EMEA, and APJ regions. Participants included those tasked with data preparation or business process improvement in retail and consumer goods, with direct experience in AI implementation.
The report's findings highlight both the growing optimism among retail data analysts regarding the potential of AI and automation, and the practical obstacles the sector faces as it seeks to modernise data processes to fully capture the value these technologies promise.
