Nothing is slowing down, and to quote Brene Brown, we have moved ‘beyond human speed’ in our attempts to keep pace with the changes in technology (and the world, for that matter).
The shape of business is changing, and old structures and systems are being rebuilt. Gartner’s CIO Agenda for 2025 headlines the need for cost management, the horrid old ‘do more with less’ mantra (which can only go on for so long until we all expire) and a new focus on delivery with ‘execution excellence’.
Excellence is a hard road, an aspirational horizon and something to keep us all on track. Rarely do I reflect on something and have the word excellence spring to mind; nonetheless, we’re up for the challenge.
Key Trends of 2025
1. The Rise and Rise of AI Systems
Are you sick of AI in retail?
Wondering and worrying if you’re too far behind or what the environmental impact of this technology will be?
What will it do to us?
To our systems?
To the planet?
Love it or worry about it – it’s getting more enmeshed into your life whether you recognise it or not.
Section School conducted research towards the end of last year, sharing that “78% of respondents overall said they feel anxious or overwhelmed by AI”. Still, AI in the retail industry is maturing beyond simple automation into agents capable of decision-making and action-taking.
In digital retail, this means systems that autonomously manage stock, adjust retail pricing strategies, and even resolve customer complaints. For projects, at least in our little part of the world, it means meeting notes and actions are recorded for you, and that every few words, you get prompted (led maybe?). There are so many upsides to this, but there’s also a downside – we become more homogeneous and more reliant.
While all this clever tech for retail is cracking on, loneliness is on the rise, and a craving for human connection is growing (just ask those who have created their own AI companions).
This suggests that ensuring there are still humans to add warmth, understanding, and a little nous to the non-obvious scenarios and interactions needs to be preserved, particularly in customer-facing systems.
Let us not forget that AI customer experience is just one of three groundbreaking technologies that Amy Webb is predicting will be at the heart of what she calls ‘Living Intelligence’. The “other two – advanced sensors and biotechnology – are less visible, though no less important.”[1]
Challenge: Retailers will need to strike a balance between empowering AI stock forecast systems and maintaining human oversight and empathy. Trust in autonomous systems will not be sustained if we let them run without appropriate governance.
Opportunity: Freed from micromanaging processes, teams can focus on strategic initiatives that drive growth and keep customers (we hope).
2. Collaboration by Another Name: Co-ownership
While working to optimise delivery and attain excellence, the most effective CIOs are also working to develop greater co-ownership of delivery with their peers. The Gartner research indicates that co-ownership has some remarkable benefits, citing metrics of “between 1.5 and 2 times more likely to maximise the value from investments in digital.”
Some might argue that this is just creating mutual accountability between peers and ensuring cross-functional engagement in the rollout of new technologies. Is this an old standby in new terminology? Maybe, but if you’re not fussy about the name, get on board—it works.
Beware, though. There’s growing evidence that people are tired. The distribution of work when working cross-functionally tends to be uneven. According to one study, 61% of managers feel that their current workload exceeds their ability to deliver.
Challenge: Traditional structures often separate IT from other business functions, making it difficult for CIOs to foster shared accountability and ownership. IT challenges, resistance to change, unclear role definitions, and conflicting priorities can further complicate efforts to achieve co-ownership. Add to that the tiredness factor, and it’s looking like a tall order.
Opportunity: CIOs can optimise adoption and maximise the value that business teams get from new technology and innovation. Those who focus on bringing the whole team along for the ride are more likely to succeed and develop resilience across the organisation.
3. Sustainability Technology
Retailers continue to face growing pressure from customers and regulators to reduce their environmental footprint, improve their transparency, and own the full lifecycle of their products.
The introduction of apps that value aftermarket products as the product is being purchased, the recent move of Vinnies to open their first online store, and the proliferation of second-life product marketplaces indicate that customers are there for it.
No one wants to contribute to the waste problem, so making progress in reducing, reusing, and recycling benefits us all.
Challenge: Aligning sustainability goals with tight budgets and operational pressures can be daunting and requires rethinking retail inventory management systems.
Opportunity: The single biggest thing we can do to reduce waste is to improve forecasting (AI forecasting tools can help here). Retail inventory tracking software and accurate counting reduce excess stock and unnecessary movement.
4. Brain-Computer Connection: A Future Customer Experience?
While brain-machine interfaces sound futuristic, they were front and centre at SXSW Sydney (2024) conference. Future Today Institute reports that Neuralink has received approval for a new study to test the brain-computer interface. Could these applications revolutionise accessibility in retail tech solutions, such as for customers with disabilities?
Challenge: In the short term, this type of retail tech feels a way off and may not be accessible to all retailers, but the exploration and experimentation are happening in labs and medical applications.
Opportunity: Early adopters could carve out leadership in a niche by leveraging the future of AI in retail technologies.
What next?
2025 will be a year of challenging conditions, no doubt. But with the right mindset, we can make the most of the potential operational advantages.
- Simplify Systems: Consolidate fragmented retail system technologies where you can. Reduce and reuse applies to systems, passwords, and data. If it’s no longer required, give yourself the gift of letting go.
- Focus on Staff: Use retail digital transformation tools and immersive retail tool technologies to upskill your team. Help them navigate new systems and establish governance around the use of AI in retail.
- Sustainability First: Invest in green retail solutions and eco-friendly supply chain initiatives. Reduce energy consumption where possible and create greater transparency in product sourcing and supply chains.
Are you ready to navigate digital transformation in retail industry with confidence and insight? Get in touch with us to discover how our tailored retail management solutions can drive your organisation towards its strategic objectives in the evolving retail strategies landscape.