75 percent of retailers say AI Agents will be essential to compete

Mohammed Alkhotani, Senior Vice President and General Manager, Salesforce Middle East.

Retailers are under increasing pressure due to rising costs, higher customer expectations, and complex technology, according to Salesforce’s latest Connected Shoppers Report. The report highlights that 75% of retailers globally believe AI agents—autonomous AI systems capable of acting across business systems—will be critical for staying competitive within a year.

Retailers Face Mounting Challenges

Rising customer acquisition costs, increasing returns, inflation, and shifting consumer behaviors are squeezing margins. To address these challenges, retailers are turning to AI and unified commerce strategies. Michelle Grant, Director of Retail Strategy and Insights at Salesforce, emphasized that unifying sales channels, customer data, and operations can create seamless shopping experiences and drive growth.

The Evolving Shopper Journey

While physical stores remain important, their share of purchases is declining—from 45% in 2024 to a projected 41% by 2026. Digital spending is fragmenting across marketplaces, retailer websites, and delivery apps, making the shopping journey more complex.

AI Agents: The Future of Retail

Retailers are doubling down on AI, with 76% planning to increase investments in the next year. Customer service is the top use case for AI agents, enabling automated responses to inquiries, order tracking, and returns management. Velia Carboni, CIO of SharkNinja, praised Salesforce’s Agentforce for helping build customer loyalty.

Beyond customer service, retailers expect AI agents to optimize websites, manage marketing campaigns, train associates, and handle inventory. Michelle Grant described AI agents as "digital labor" that will reshape retail operations.

Middle East Retail Growth

The UAE’s retail market is projected to grow from $44.38 billion in 2024 to $61.89 billion by 2030, while Saudi Arabia’s retail sales are expected to reach $161.4 billion by 2028. Mohammed Alkhotani of Salesforce Middle East highlighted the role of AI in meeting customer demands and supporting national retail strategies.

Unified Commerce Powers AI

AI agents require unified data to function effectively. However, 81% of retailers say disconnected systems hinder productivity, and 49% of shoppers abandon purchases due to friction. Fortunately, 86% of retailers are implementing unified commerce initiatives to improve efficiency and customer experiences.

Shoppers Embrace AI

Consumers are already using AI for product discovery, with 39% of shoppers (and 54% of Gen Z) leveraging AI tools. Gen Z is 10x more likely than baby boomers to use AI for shopping. Shoppers are also interested in AI agents managing loyalty points, returns, and even making purchases on their behalf (63% of Gen Z).

Key Factors for Trust in AI Agents:

1. Data privacy and security protections
2. Ability to easily turn agents on/off
3. Require approval before purchases
4. Transparency over data usage
5. Human customer service backup

Michelle Grant concluded that retailers and shoppers are moving toward an AI-driven future, but success hinges on building trust and transparency.

Learn More:

• Connected Shoppers Report
• Salesforce Retail Cloud