Dr Pieranglo Rosati
Associate Professor in Digital Business and Society, University of Galway & Funded Investigator, Lero – Science Foundation Ireland Research Centre for Software
Emer McCarthy
Group Strategy and Ecommerce Director, Kilkenny Group
Learn why proper data governance and infrastructural investments are necessary to maximise the value of AI investments in retail.
The retail sector stands at a pivotal moment. With 98% of executives aiming for full AI deployment within three years, the industry is witnessing one of the largest technology investment waves in corporate history, yet demands strategic attention.
The data foundation crisis
Despite unprecedented AI enthusiasm, the retail sector faces a fundamental challenge: data readiness. Research reveals that 58% of retailers operate with fragmented customer data, while only 28% have achieved system-level integration. More alarmingly, just 13% maintain a real-time data warehouse, the bedrock of effective AI implementation.
Without clean, integrated and accessible data, even the most sophisticated AI algorithms become expensive disappointments. Retailers must prioritise data centralisation and automated integration pipelines before deploying advanced AI models.
The true power of retail AI
emerges when departments
collaborate strategically.
Strategic AI implementation: a collaborative foundation
Adopting AI in retail from a business perspective is no longer a question of innovation—it’s a strategic imperative. Successful AI adoption requires moving beyond tool acquisition to strategic orchestration across departments. Rather than pursuing isolated AI experiments, leading retailers are embracing integrated approaches that create synergies between marketing, operations, ecommerce and supply chain functions.
The most effective implementations begin with a clear strategic vision and dedicated cross-functional AI teams. These organisations establish comprehensive employee training programmes and maintain rigorous focus on measurable outcomes, thus linking AI initiatives directly to revenue growth, cost savings and enhanced customer experience metrics.
Achieving omnichannel synergy
The true power of retail AI emerges when departments collaborate strategically. Customer insights generated from one channel can enhance personalisation across all touchpoints. Inventory intelligence can simultaneously optimise pricing strategies and promotional campaigns. This integrated approach transforms fragmented AI initiatives into a cohesive omnichannel strategy that delivers exponential rather than additive value.
However, achieving such synergy requires dedicated leadership, robust change management and most importantly, a solid data foundation that enables seamless information flow between systems and departments.
Leveraging industry-academia collaboration
Forward-thinking retailers recognise the value of collaborating with academic institutions to inform their AI innovation strategies. Universities offer access to cutting-edge research, unbiased analysis of emerging technologies and deep expertise in implementation methodologies.
Ongoing partnership between Kilkenny Group and University of Galway through LERO, the SFI Centre for Software Research, exemplifies this approach. With a specific focus on data preparation and architecture optimisation for AI deployment, it has delivered substantial value for business and research alike.
Quality data drives value
Retailers face a choice: invest in foundational data infrastructure alongside strategic AI deployment or risk joining the growing number of organisations that struggle to realise AI’s promised returns.
