Retailers in Australia and New Zealand have been embracing artificial intelligence (AI), but remain wary due to customers’ growing scepticism of the technology.
According to new research from Monday.com, 82 per cent of businesses in ANZ are either piloting or have already deployed AI agents as part of their digital transformation. However, only 9 per cent trust these systems to manage the full customer journey without human involvement.
Many retail leaders are holding back full implementation due to several issues, with 64 per cent citing customer scepticism as a key concern.
About 68 per cent believe transparency about AI use will directly determine brand loyalty, while the same proportion worry about the quality and consistency of AI-generated outputs.
“We’re seeing real caution in the market, and for good reason,” said Gavin Watson, senior industry lead at Monday.com. “Retailers are right to question where their data is going, and how it’s being used. At the end of the day, protecting the brand-customer relationship is paramount.”
“To truly unlock the benefits of AI, retailers need more than just tools; they need the right frameworks to ensure AI supports, rather than undermines, the customer experience.
“That means building in guardrails for data privacy, keeping humans in the loop, and ensuring automation reflects a brand’s values at every touchpoint,” he added.
The study also points out that AI is less popular among smaller retailers, with only 62 per cent of small businesses (fewer than 50 employees) believing such tools can help them compete more effectively.
Among these small retailers, just 40.9 per cent have AI agents live today, compared to 71.4 per cent of mid-sized chains (100 to 499 employees). For micro retailers (one to nine employees), cost is the biggest barrier to adoption, cited by 73 per cent of respondents in the category.
“The irony is AI should help small businesses do more with less, but right now, they’re the ones being left behind,” commented Watson. “For smaller retailers, this isn’t just about cutting costs. It’s about gaining back time, improving operations, and being able to compete on a more level playing field.”
The Monday.com report surveyed 500 retail leaders across Australia and New Zealand in June, in partnership with independent research agency CensusWide.
