German retail struggles with AI integration

Two-thirds of surveyed retailers rated their employees’ AI skills as low or rather low, and 67 per cent reported poor integration of data sources necessary for AI applications.

Retailers primarily use AI for personalized offers, customer service, and enhancing in-store experiences and the technology is also applied in marketing automation and demand forecasting. According to EHI expert Tobias Röding, generative AI has reignited interest in the topic, but the real challenge lies not in the technology itself, but in how companies strategically and holistically implement it.

Retailers have begun responding to the challenges: all surveyed companies have developed AI guidelines and plan to introduce training programs by the end of 2025. Over half are building ambassador or multiplier programs, and 32 per cent already operate their own AI-focused learning platforms. One participant noted, “We have so-called AI champions who drive the topic and act as multipliers within business units.”

Cloud services dominate the technological infrastructure: two-thirds of retailers rely on platforms like Amazon Web Services, Microsoft Azure, or Google Cloud, valued for their scalability and fast integration. However, 21 per cent of companies emphasize the importance of storing data primarily on European servers. Some adopt hybrid multi-cloud strategies to better protect sensitive data. Concerns include potential loss of control, dependency on global providers, and misuse of data.

EHI expert Imke Hahn, who contributed to the study, explained: “The biggest barriers to successful AI use lie less in the technology itself and more in the quality, consistency, and structural embedding of data processes.”

The study surveyed 38 executives from leading retail companies in Germany, Austria, and Switzerland, collectively operating around 39,000 stores.