- February 2026
Scaling AI in retail: Europe’s moment to lead
Artificial intelligence is no longer a distant promise but is already reshaping retail. For European retailers, the stakes could not be higher. AI has the potential to drive operational efficiency, unlock new revenue streams, and fundamentally reinvent the retail model.
According to BearingPoint’s survey of more than 1,000 C‑level executives,
-
54%
of retail leaders expect AI to improve efficiency
-
51%
see it as a lever for revenue growth
These figures reflect not just optimism, but a strong belief that AI will become a core driver of resilience and competitiveness across the sector.
The retail landscape has undergone a seismic shift. To remain competitive, retailers must continuously rethink and adapt their business models.
Elisabeth Denner, Retail, CPG & Luxury Partner
Yet ambition alone will not deliver results. Despite the hype, scaling AI remains a major challenge. Uncertainty around return on investment is the top barrier, cited by 55% of executives, while 53% struggle to move beyond pilot projects. Regulatory complexity adds further friction, particularly in Europe, where compliance requirements are among the most stringent globally.
The consequence is a clear maturity gap
This gap should serve both as a wake‑up call and an opportunity. Retailers that act decisively now can leapfrog competitors and shape the next wave of AI‑driven transformation.
-
13%
of European retailers are considered advanced in their AI journey
-
40%
in China
-
27%
in the US
From pilots to scale: Building the right foundations
Closing this gap requires far more than deploying additional tools or multiplying isolated use cases. Nine out of ten retailers report that they have been unable to scale AI initiatives in line with their original business expectations. Successful scaling starts with a clear strategic vision and a well‑defined transformation roadmap, supported by strong foundations: robust data platforms, consistent reference systems, and partnerships with innovative technology players.
Governance is equally critical. Scaling AI demands structured organizations with clear roles, strong cross‑functional collaboration, defined decision‑making bodies, and rigorous data quality standards. Culture also plays a decisive role. Building AI literacy and equipping teams with the right skills is essential to turning technology into measurable business impact.
Scaling is not about adding tools - it’s about rethinking the organization, roles, and the entire value chain.
Elisabeth Denner, Retail, CPG & Luxury Partner
From a technology perspective, traditional enterprise systems such as ERP, e-commerce, CRM, and supply chain platforms remain essential, but their role is evolving. They increasingly serve as execution layers, while intelligence moves upstream to unified, governed data platforms. These platforms not only prepare data for decision-making but also enable the orchestration of AI agents across the value chain. With data availability and quality still significant obstacles for many organizations, such platforms are a prerequisite for moving from pilots to industrialized, scalable AI deployments.
This foundation allows retailers to deliver quick wins, such as AI-driven forecasting, while progressively deploying specialized agents across customer engagement, merchandising, and supply chain operations. Orchestrated through a common data platform, these agents operate in a coordinated, context-aware manner, improving efficiency, accelerating decision-making, and building organizational confidence to sustain broader transformation.
From SEO to GEO: Visibility in an AI-driven customer journey
A more profound shift is underway, and most retailers are not prepared for it. As generative and agentic AI increasingly acts on behalf of consumers, the rules of visibility are being rewritten. Search‑driven journeys are disappearing; AI agents now recommend, compare, and decide.
In this new customer journey, people no longer browse options. They accept the AI’s selection. This means the real competition happens before the consumer ever sees a product, and it is here that the shift from SEO to GEO (generative engine optimization) becomes critical.
SEO helps you rank on search pages. GEO ensures AI systems can interpret, trust, and prioritize your products in their recommendations. It is no longer about keywords, but about structured data, clear value signals, and machine‑readable proof of quality.
Retailers that master GEO influence decisions upstream, inside AI agents themselves. Those that do not may still be on page two of Google, but they risk becoming invisible in the AI’s shortlist of one.
The time to act is now
The divide between bold movers and passive observers will widen rapidly. In a market where AI is becoming a core strategic differentiator, hesitation comes at a cost. Scaling AI in retail requires a holistic approach that balances ambition with execution, technology with governance, and innovation with cultural change.
For European retailers, this is not simply an opportunity. It is a mandate. Acting now means moving from experimentation to impact, reshaping competitive dynamics, and unlocking sustainable growth through AI.
The question is no longer whether AI will transform retail, but who will lead.
