Observed Signal · Jul 8, 2026 · Survey / Report · Source: Retail Dive · Impact: 3/5 · Sentiment: Positive
Retailers to Boost AI and Cybersecurity Investments
A KPMG survey of 250 retail executives finds the majority of retailers plan increased investment in AI, cybersecurity and data analytics this year. More than half (52%) report spending $50 million or more annually on digital technology; 28% spend between $100 million and $250 million. Retailers cite technical debt as a barrier to new investments (48%), but 86% say tech enhancements frequently improve business value and many have realized 31–40% of total financial value from AI and intelligence tools. Currently 42% are innovating and deploying AI at scale, with 74% expecting to do so within 12 months. Planned spend increases include cybersecurity (52%), data and analytics (49%) and AI/automation (42%). The article also cites consumer surveys showing younger shoppers more open to AI shopping tools and includes executive comments from Sally Beauty, Lowe’s and Novi on balancing AI with human experience.
A broad KPMG survey shows significant technology budgets and planned increases in AI, cybersecurity and data/analytics among retailers — signaling increased demand for MarTech, data platforms and security solutions that will affect vendors and media strategies across retail.
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Key Takeaways & Evidence Grounding
- KPMG surveyed 250 retail executives on technology spending and adoption.
- 52% of retailers report spending $50 million or more annually on digital technology; 28% spend $100 million–$250 million.
- 48% of respondents said technical debt prevents them from investing in other technologies (IBM definition of technical debt cited).
- 42% of retailers said they are innovating and deploying AI use cases at scale today; 74% expect to do so within 12 months.
- Retailers plan to increase spending on cybersecurity (52%), data & analytics (49%) and AI/automation (42%).
Connected Companies & Entities
5 Entities mapped“More than half (52%) of retailers are pouring $50 million or more into digital technology annually, according to KPMG’s recent survey of 250...”
“Nearly half (48%) of respondents said the cost of technical debt, defined by IBM as the future costs stemming from shortcuts and flawed deci...”
“At the same event, Amanda Bailey, vice president of customer marketing and loyalty at Lowe’s, described how customers’ product searches have...”
“Another survey from ICSC and McKinsey & Company released in May found that 68% of shoppers had used at least one AI tool while shopping over...”
“AI and automation, including generative AI and agentic AI, is also one of the top areas where retailers expect to increase their investment....”
Ontology Mapping & Concepts
Related Market Signals & Shifts
Recent verified developments and strategic activity across this market segment.
Retailers Invest in AI for Supply Chain and Shopping
Major retailers, including Gap, Dollar General, Ulta Beauty, and Kohl's, are accelerating AI adoption across supply chain, customer experience, and internal operations, as revealed in their Q2 earnings calls. Ulta's CEO Kecia Steelman highlighted early AI adoption for productivity and scaling opportunities, with new CTO Kelly Garcia advancing tech initiatives. Gap's capital expenditure for technology and supply chain is set at $650 million. Ulta uses AI for sourcing, inventory optimization, and AI-powered search and discovery, including its on-site shopping agent Ulta AI. Kohl's CEO Michael Bender reported early positive results from its AI shopping assistant, improving conversion and revenue per visit. Dollar General's CEO Todd Vasos mentioned building agentic operating systems for enterprise workflows, with net sales up 5.2% to $11.3 billion. Bain partner Aaron Cheris notes that most retailers are applying AI to specific areas rather than pursuing full AI transformation, with examples like Home Depot's Magic Apron and Walmart's Sparky.
Retailers Adopt AI Widely but Struggle to Scale
A sponsored Retail Dive piece by Stratix Corp. reports that nearly 90% of retailers are using or piloting AI and 87% cite positive revenue impact, yet only about one-quarter have operationalized AI at scale. The article argues the primary barrier to broad AI rollout is operational readiness at the retail edge—stores, cameras, mobile devices, sensors and networks—rather than algorithms themselves. Failures in device reliability, fragmented hardware fleets, inconsistent updates and connectivity lapses undermine use cases such as computer vision, inventory intelligence, loss prevention and associate enablement. The piece recommends disciplined edge operations: device standardization, proactive lifecycle management, remote performance monitoring and integrated security and governance to translate AI pilots into repeatable, chain‑wide benefits.
Report: Retailers Speed AI but Lack Customer Readiness
Arktic Fox and Six Degrees Executive, in partnership with Amperity, published the Inside Digital & eCommerce 2026 report based on surveys of 100+ Australian retail and brand leaders. The study finds retailers are rapidly increasing investment in AI, personalization, omnichannel experiences and retail media, but many lack the real-time customer context, integrated data foundations, and operational agility to act on customer signals. Key metrics include 89.1% of retailers rating personalization as strategically important yet only 10% claiming mature capability, and just 12% confident their customer and product data foundations can support AI use cases. The report highlights developing identity resolution, partial martech integration, and growing emphasis on CDPs, closed-loop measurement and privacy-safe data collaboration to connect media investment to business outcomes.
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