Retail tech buyers demand proof over promise on AI

ASPR has published survey data showing mixed views on AI among retail technology providers and buyers, pointing to a market that remains cautious about the technology.

The survey of 50 industry professionals at the Retail Technology Show found that 24% believe AI is overhyped or creating confusion. Almost half, 48%, described it as promising but still early, while 28% said it is already delivering measurable impact.

Responses also suggest AI is becoming harder to use as a point of difference. While 34% said it helps them stand out, 30% said it is raising expectations among buyers. Another 18% said it is creating noise and making differentiation harder.

Proof of value

Return on investment emerged as the main obstacle to technology adoption. Some 28% of respondents cited proving ROI as the biggest challenge, ahead of integration complexity and budget pressures, both at 16%.

AI and vendor overload were each named by 20% of respondents as key issues, suggesting a market with a wide range of offers but less certainty about which products deliver clear commercial results.

The focus on proof also appeared in purchasing criteria. More than a third of respondents, 36%, said proven results and case studies were the most important factor in buying decisions, compared with 26% who pointed to pricing. Brand reputation was cited by 14%, while product features were selected by 4%.

This suggests retailers and technology buyers are placing greater weight on evidence than on technical claims alone. Vendors are under pressure to show how their products contribute to revenue, margins or operational efficiency.

Competitive market

The research also highlighted a crowded market for retail technology suppliers. Four in 10 respondents described the sector as highly competitive, while 28% said it was saturated.

Only 24% pointed to the pace of change in the market, and 2% described it as full of opportunity. The figures suggest activity remains strong, but many suppliers see differentiation as increasingly difficult.

Business development challenges reflected that view. Some 32% of respondents said standing out in a crowded market was their biggest business issue, while 30% said reaching the right buyers was the main problem. Integration concerns were cited by 14%, and 10% pointed to long sales cycles.

Integration appeared repeatedly across both technical and commercial concerns, indicating that retailers are wary of adding tools that do not fit existing systems, even where there is interest in new technology.

Shift in priorities

Looking ahead, respondents placed cost control above other priorities for the coming year. Some 36% said cost reduction and efficiency would matter most over the next 12 months, compared with 28% who selected AI and automation and 22% who chose customer experience.

This suggests retail technology investment is likely to be judged more tightly against operational and financial outcomes. Suppliers may find that interest in AI remains strong, but only when it can be tied to practical gains.

Abi Spencer, Founder of ASPR, said: "The retail technology market is not short of ideas, but it is short of clarity and proof. Buyers are being asked to navigate a huge number of similar propositions, many of which sound compelling but struggle to demonstrate real impact.

"What we are seeing is a shift towards proof over promise. Case studies, measurable outcomes and clear commercial narratives are becoming the deciding factors.

"For vendors, that changes the role of communications. It is not just about visibility, it is about translating complexity into something that buyers can trust and act on. The brands that can do that effectively will be the ones that cut through."