Digital Event Horizon
New study reveals that 90% of retailers plan to increase their AI budgets in 2026, as companies seek to harness the power of agentic and physical AI to drive revenue growth, streamline operations, and enhance customer experiences. The third annual NVIDIA State of AI in Retail and CPG survey report highlights the maturation of AI within the industry, with 91% of respondents saying their companies are either actively using or assessing AI.
91% of respondents are using or assessing AI in their companies. 90% of retailers plan to increase their AI budgets by 2026. 79% of respondents value open-source models and software for AI adoption. 47% of respondents use or assess agentic AI in their operations. 17% of respondents are using or evaluating physical AI technology. 64% of respondents report increased supply chain challenges year-over-year. The top pressure valve for AI adoption is to streamline operations and solve complexity.
The retail and consumer packaged goods (CPG) industries have long been at the forefront of adopting artificial intelligence (AI) technologies. The latest data from NVIDIA's third annual State of AI in Retail and CPG survey report provides a detailed look at the current state of AI adoption in these sectors, highlighting trends, challenges, and opportunities for businesses to leverage AI to drive growth and competitiveness.
According to the report, 91% of respondents said their companies are either actively using or assessing AI. This represents a significant increase from previous years, as companies continue to recognize the potential benefits of AI to enhance customer experiences, streamline operations, and drive revenue growth.
The survey also found that 90% of retailers plan to increase their AI budgets in 2026, with many companies seeking to build on the success of current projects by investing more in AI initiatives. This increase in investment is expected to focus on open-source models and software, as well as agentic and physical AI technologies.
Open source has emerged as a key enabler of AI adoption in retail, providing flexibility, adaptability, and strong governance. The use of open-source models and software has become moderately to extremely important to the AI strategies of 79% of respondents, allowing teams to leverage their proprietary data and avoid vendor lock-in.
Agentic AI is gaining traction in the industry, with 47% of respondents saying their companies are either using or assessing agentic AI in their operations. Agentic AI refers to AI agents that can act independently to solve problems and make decisions, without human intervention. This technology has the potential to transform retail supply chains and operations, enabling real-time inventory rebalancing, dynamic pricing, and vendor negotiations at scale.
Physical AI is also gaining ground, with 17% of respondents using or evaluating the technology. Physical AI refers to AI systems that are integrated into physical infrastructure, such as warehouse management systems and logistics platforms. The early adopters of physical AI have demonstrated that this technology can deliver more than just task automation, enhancing flexibility and throughput in response to workforce pressures and rising logistical complexity.
The industry is facing intense supply chain challenges, with 64% of respondents reporting increased challenges year over year. However, the use of AI has helped retailers optimize inventory at the store and customer level, predict demand more accurately, and avoid out-of-stock situations. The top pressure valve for using AI is to streamline operations and solve complexity, with 51% of respondents citing this as a key objective.
In conclusion, the rise of agentic and physical AI in retail is transforming the industry landscape. Companies that adopt these technologies are likely to experience significant business benefits, including revenue growth, operational efficiency, and enhanced customer experiences. As the industry continues to mature, we can expect to see even more innovative applications of AI, driving further growth and competitiveness for retailers.
Related Information:
https://www.digitaleventhorizon.com/articles/The-Rise-of-Agentic-and-Physical-AI-in-Retail-How-Companies-Are-Harnessing-the-Power-of-Artificial-Intelligence-to-Drive-Business-Growth-deh.shtml
https://blogs.nvidia.com/blog/ai-in-retail-cpg-survey-2026/
https://roaduniverse.com/from-warehouse-to-pockets-new-state-of-ai-in-retail-and-cpg-survey-uncovers-how-ai-is-rewiring-provide-chains-and-buyer-experiences/
Published: Sat Jan 17 05:19:33 2026 by llama3.2 3B Q4_K_M
