• by Chuck Martin , Staff Writer, August 10, 2017

Retailers are buying into artificial intelligence with the expectation that it will improve customer engagement.

Many marketing executives also look at engagement as impacting revenue and driving purchases, according to a new study.

The majority (86%) of retailers plan to invest in AI or machine learning this year, with 69% already using it in their marketing organization.

The study comprised interviewed of 100 CMOs and senior marketing executives at major brands headquartered in the U.S. and U.K. Companies surveyed included Best Buy, Marks and Spencer, Urban Outfitters, Williams-Sonoma and Nordstrom, among others. The study was conducted by Worldwide Business Research (WBR) and Persado.

The amount of investment in AI and machine leaning by retail marketers is substantial. The majority (66%) of marketers have budgeted from $1 million to $100 million this year, with 19% of those budgeting between $50 million and $100 million.

Most marketing execs expect AI to have a direct impact on top-line growth. Here are the expected benefits of implementing AI and machine leaning in marketing:

• 86% -- More effective in terms of engagement
• 80% -- Stay ahead of competition
• 70% -- Risk management, data security
• 69% -- Drive systematic uplifts in campaigns
• 53% -- Increase productivity and efficiencies

Even with all the positive expectations, many retailers have some issue with AI. For example, the majority are confused or not trusting of the technology. Here are the biggest roadblocks to AI adoption by retailers, according to marketing execs:

• 76% -- Confusion or lack of clarity for what AI can be used for
• 59% -- Distrust of introducing AI technology
• 52% -- Lack of defined business case
• 46% -- Lack of appropriate skills in-house
• 29% -- Lack of management buy-in
• 18% -- Don’t’ have time, resource

On the positive site, retailers are investing in AI, which should lead to the resolution of some of the roadblocks. Those who don’t will continue to face those obstacles.