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Retailers Accelerate AI Investments as Technology Spending Becomes a Competitive Necessity

Jul 16, 2026·3 min read

NORTH PLAINFIELD, N.J. — Artificial intelligence is rapidly moving from experimentation to everyday business strategy, with nearly half of retailers making new technology investments this year and two-thirds actively using or evaluating AI, according to a new mid-year industry survey released Wednesday by Levin Management Corp.

The findings suggest retailers are no longer asking whether to adopt artificial intelligence—they are deciding how quickly they can deploy it.

The survey found 47.8% of retailers have increased technology investments during 2026, while 66.4% reported they are either already using AI, testing AI tools or actively exploring how artificial intelligence can improve their businesses.

For retailers facing rising labor costs, inflation and changing consumer expectations, technology is increasingly becoming a competitive requirement rather than an optional investment.

AI Moves Into Everyday Retail Operations

Retailers are deploying artificial intelligence across a growing range of business functions.

Rather than focusing only on customer-facing chatbots, companies are using AI to improve inventory management, forecast demand, automate marketing campaigns, personalize promotions, streamline customer service and optimize staffing levels.

Many businesses are also integrating AI into financial reporting, product recommendations and supply chain management.

The shift reflects a broader movement toward operational efficiency as retailers search for new ways to increase productivity while controlling expenses.

Technology Spending Continues to Rise

The survey indicates retailers remain willing to invest despite continued economic uncertainty.

Business owners increasingly view technology upgrades as long-term investments capable of improving profitability, customer satisfaction and operational performance.

Artificial intelligence has become one of the fastest-growing categories within those technology budgets as software providers continue introducing new tools designed specifically for retail businesses.

Companies that once delayed digital transformation are now accelerating adoption to remain competitive.

Competition Driving Adoption

Consumers increasingly expect faster service, personalized recommendations and seamless shopping experiences whether purchasing online or inside physical stores.

Meeting those expectations often requires advanced technology operating behind the scenes.

Retailers that fail to modernize risk falling behind competitors that use AI to improve pricing, inventory accuracy, customer engagement and operational efficiency.

The survey suggests many retailers recognize that challenge and are responding by increasing technology investments.

Brick-and-Mortar Stores Continue to Adapt

While e-commerce remains important, physical retail locations continue investing heavily in technology.

Artificial intelligence is helping store operators better understand customer traffic, improve merchandising decisions and manage inventory more efficiently.

Shopping centers are also benefiting as retailers modernize operations to create more engaging in-store experiences while integrating digital capabilities with traditional retail.

The combination of physical locations and AI-powered business tools is becoming an increasingly important competitive advantage.

Looking Ahead

The survey reinforces a broader trend unfolding across nearly every industry: artificial intelligence is transitioning from a future technology to a core business tool.

For retailers, the question is no longer whether AI will reshape operations—it already is.

Businesses that invest today may gain meaningful advantages in efficiency, customer service and profitability, while those that delay adoption risk losing ground in an increasingly technology-driven marketplace.

As retailers prepare for the critical holiday shopping season, artificial intelligence is expected to play a larger role than ever in how stores manage inventory, serve customers and compete for consumer spending.

JBizNews Desk | North Plainfield, New Jersey

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