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About twenty years ago, the retail industry was vastly different. It was defined by manual inventory counts and face-to-face conversations to understand customer preferences. Nearly half of industry respondents see AI and as key to enhancing end-to-end supply chain visibility, suggests report. The same proportion of retailers surveyed believe these technologies will transform personalized product recommendations. While this focus highlights a growing trend, retailers are leveraging AI not just for customer-facing operations, but also to streamline backend processes. As businesses embrace GenAI, they are also radically shifting their data strategy, pushing AI to the edge. Personalization is ramping up, bringing increased privacy concerns along with it. With data breaches becoming an almost annual tradition, the industry is caught in a challenging dilemma. “Worldwide end-user spending on security and risk management is projected to total $215 billion in 2024, an increase of 14.3% from 2023, according to ®.” The shift to edge AI is more than a technological upgrade; nearly three-quarters of consumers now demand tailored interactions from companies, suggests a survey. It is about giving customers a unique shopping experience, no matter where they buy – online or at the store, and at the same time, ensuring their information is protected. This change also stems from data privacy concerns, with almost 50% of consumers surveyed globally citing privacy and security as their top concerns when engaging with brands. By processing data locally rather than relying solely on distant cloud servers, retailers can offer personalized interactions across all touchpoints while reducing the risk of breaches and allaying consumer fears about data misuse.Edge points—from mobile devices and in-store computers to shelves and cameras—are becoming increasingly powerful, driven by enhanced computing and memory capabilities. This progression is moving AI processing away from centralised cloud systems and towards these distributed edge points through reduced latency, heightened data security, and hyper-personalization at the customer interface.
