AI adoption in New Zealand’s retail sector stands at 33%, below Australia and Singapore: report

by

Azunta Gaviola

-

1 year ago

Australia – Implementation of artificial intelligence in New Zealand’s retail workforce is notably slow as compared to retail sectors in Australia and Singapore, according to the latest study from software development firm UKG.

Data from the findings revealed that only 33% of the surveyed respondents have indicated implementing AI and automation in their workplace, a significantly lower percentage from Singapore (92%) and Australia (46%). 

Among New Zealand workers using AI, 64% noted improvements in analysing customer sentiment, 55% in automating schedules, and 48% in handling staff management tasks, including time and leave tracking. This indicates their integration within the workforce is mainly geared towards enhancing day-to-day operations.

Despite the slow adoption pace, a notable 77% of workers interestingly showed readiness in using AI should it enhance their working experience, with 67% seeking improvements in staff management. Another 47% also indicate enhancements to customer sentiment analysis and 44% in automating inventory management. 

According to the report, the motivation for its adoption is likely connected to the growing trend towards efficiency and streamlined work operations. 

Furthermore, the research highlighted several workplace challenges encountered by New Zealand retail workers, noting 37% reported feeling burnt out in their current roles. Major factors contributing to this sentiment include being understaffed (67%), poor management (63%), and a desire for higher salaries (62%).

Commenting about the report, Alex Catteau, vice president of sales in Australia and New Zealand at UKG, said, “Our research shows that retailers in New Zealand are drastically lagging behind their peers in Singapore and Australia. The retail industry must embrace these technologies to assist their employees in providing the best service and meeting a business’s strategic objectives.”

“The retail demands of consumers are changing, as is the technological landscape in which retailers operate. AI adoption in retail across New Zealand can help businesses retain their talented workforce and therefore their competitive advantage,” added Catteau.

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