Photo: Internet Retailing

One in four retail technology providers believe artificial intelligence (AI) is overhyped or actively adding to confusion, according to new research from retail and hospitality technology PR agency ASPR.

The survey, carried out among attendees at the Retail Technology Show 2026, found that 24% feel AI is failing to live up to expectations, underlining a growing credibility gap between what technology promises and what it delivers, News.Az reports, citing Internet Retailing.

Although AI is central to many vendor strategies, its role in helping businesses stand out is far from clear‑cut. Around a third (34%) say AI helps differentiate their offering. However, 30% say it has raised buyer expectations, making it harder to stand out, while a further 18% believe AI messaging has created noise in an already crowded market.

Caution is widespread 

Confidence in AI’s long‑term value remains, but caution is widespread. Almost half of respondents (48%) describe AI as promising but still early, while 28% say it is already delivering measurable results.

Proof of value remains the biggest challenge. More than a quarter (28%) say demonstrating return on investment is the main barrier to adoption, ahead of integration complexity and budget pressure. AI overload and too many vendors were also highlighted, pointing to a lack of clarity over what genuinely works.

Standing out in a crowded market is now the single biggest business challenge for 32% of respondents, closely followed by reaching the right buyers. Integration continues to be a concern both technically and commercially, with retailers wary of tools that do not fit easily into existing systems.

Evidence of success is essential

Buying decisions increasingly hinge on evidence. Proven results and case studies are the most important factor for 36% of respondents, far outweighing product features.

Abi Spencer, founder of ASPR, said: “The retail technology market is not short of ideas, but it is short of clarity and proof. Buyers are being asked to navigate a huge number of similar propositions, many of which sound compelling but struggle to demonstrate real impact.

“What we are seeing is a shift towards proof over promise. Case studies, measurable outcomes and clear commercial narratives are becoming the deciding factors.

“For vendors, that changes the role of communications. It is not just about visibility, it is about translating complexity into something that buyers can trust and act on. The brands that can do that effectively will be the ones that cut through.”

News.Az 

By Leyla Şirinova