Singapore Retailers Bet on AI to Tackle Declining Store Sales
With store sales dipping, 69% of Singapore retailers see AI agents as essential tools to outpace competitors within the next year. According to Salesforce’s latest Connected Shoppers Report, this shift towards AI is gaining momentum, with 85% planning to boost AI investments in 2025.
Challenges Driving AI Adoption
Retailers face rising customer acquisition costs, inflation, and increasingly fragmented shopping journeys. While physical stores remain relevant, their share of purchases is expected to drop from 43% in 2024 to 38% by 2026. Digital channels like websites, marketplaces, brand apps, and delivery platforms are steadily taking a larger slice of sales.
How AI Agents Are Being Used
The Salesforce report, which surveyed 8,350 shoppers and 1,700 retail executives globally (including 100 in Singapore), identified AI agents as a strategic response to these challenges. These autonomous systems handle tasks across marketing, customer service, inventory management, and employee training.
- Marketing: AI agents help segment audiences and automate campaigns based on real-time shopper behavior.
- In-store support: AI automates common queries and return processes, addressing productivity losses reported by 75% of retailers due to inefficient systems.
Consumers Are Embracing AI, With Conditions
About 36% of Singapore shoppers already use AI for product discovery, with the figure rising to 53% among Gen Z. Shoppers are open to AI managing loyalty programs and answering questions but expect safeguards around privacy, transparency, control, and the option to interact with a human.
Investing in Unified Commerce
To make the most of AI, 82% of Singapore retailers are investing in unified commerce platforms. These systems integrate stores, online channels, and back-end operations to provide better data access and faster, more personalized service.
For sales professionals looking to sharpen their AI skills and keep pace with these trends, exploring targeted AI training can be a practical move. Platforms like Complete AI Training offer courses that cover AI in marketing and customer engagement, helping you stay competitive in a shifting retail landscape.
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