Retailers Face AI Impact Test Amid Inflation and Holiday Demand

Mid-year findings from Accenture’s Pulse of Change research reveal that while retail CEOs continue to champion AI for productivity and competitive edge, confidence in managing disruption has waned. With 73% of leaders expecting higher inflation and 70% foreseeing slower global growth, retailers are tightening budgets and demanding clear ROI from AI projects. Despite these pressures, retail sales have risen for ten straight months, though U.S. real incomes remain about 5% below pre-pandemic levels, tightening consumer finances.

Shoppers are expected to prioritize value, downgrade where feasible and align purchases with major sales events. Companies such as Target have created senior AI roles to better integrate the technology across the business. Supply-chain volatility and energy price swings are also prompting 44% of retailers to accelerate operational restructuring, where AI can help anticipate demand shifts and optimize fulfillment.

Employee sentiment is mixed; many report productivity gains from AI tools, yet concerns linger about reskilling responsibilities and organizational readiness for talent changes. Success this holiday season will hinge on retailers’ ability to turn AI into a practical advantage that improves customer experience, operational agility and workforce support.