Honeywell Survey Reveals AI Investment Plans Among Retailers for 2025

Honeywell released findings from its AI in Retail Survey that reveal over 80% of U.S. retailers plan to increase their use of artificial intelligence (AI) in 2025. The research highlights how AI is reshaping retail operations to address challenges in return management, customer service, and product availability, while enhancing employee satisfaction and skills.

AI Integration in Retail Operations

According to the survey, 35% of major retailers intend to significantly expand their AI investments next year. Retailers view AI and automation as essential for adapting to shifting consumer behaviors and optimizing omni-channel operations.

“We are truly in the midst of a new era for the retail sector where evolving AI capabilities will make a positive impact on the shopper’s journey, the employee experience and the retailer’s supply chain operation,” said David Barker, president of Honeywell Productivity Solutions and Services. “On their journey toward autonomous operations, retailers are looking for AI and automation solutions that provide actionable data and help to upskill their employees.”

Enhancing Employee Experience

The survey indicates that AI is playing a critical role in improving workplace satisfaction and efficiency for retail employees. Key findings include:

• Over 50% of retail leaders stated AI improves employee retention.
• 52% believe AI helps employees advance their careers by enhancing soft skills and adding value to their roles.
• 60% of executives reported that AI tools simplify tasks, and 55% noted that these tools increase job satisfaction.

As the U.S. retail industry faces over 580,000 projected job openings in 2025, AI is expected to support employee development and retention, contributing to better customer service.

AI’s Impact on Shoppers

AI adoption is also transforming the shopping experience. Two-thirds of surveyed consumers reported using AI while shopping, citing features like chatbots, price comparison tools, and review summaries.

The survey highlighted popular consumer use cases:

• 53% of respondents identified price comparison as the most valuable AI application.
• 41% relied on AI for checking product availability.
• 34% used AI for a simplified and seamless checkout experience.

These capabilities align with the retail sector’s focus on improving customer experience across online and in-store channels.

What This Means for Small Businesses

While the survey focused on large retailers, small businesses can draw valuable insights from these findings. As major retailers expand their AI investments, small businesses should consider adopting scalable AI tools to remain competitive. Solutions like AI-driven chatbots, automated inventory management, and data analytics can enhance efficiency and improve customer experiences without requiring significant investment.

Small businesses can start by identifying specific operational challenges—such as streamlining checkout processes or managing stock levels—and exploring affordable AI technologies tailored to their needs. These initial steps can help smaller retailers stay competitive in an increasingly AI-driven market.

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