The retail industry is undergoing a profound transformation. With shifting consumer behaviors, labor shortages, and supply chain disruptions, retailers are being pushed to adapt faster than ever before. Under the surface, the pressure to manage costs, anticipate trends, and operate more efficiently has never been greater.

Fortunately, a new generation of technologies – led by artificial intelligence (AI) and modern IT infrastructure – is creating opportunities for retailers to thrive, not just survive. From personalized customer experiences to autonomous inventory management and frictionless checkout, AI has the potential to revolutionize every corner of the retail experience.

Yet, realizing these benefits isn’t without its challenges. Many retailers operate on razor-thin margins, making the investment in AI infrastructure and advanced computing hardware a significant hurdle. That’s where the right technology partnerships, particularly with companies like AMD, come into play.

The AI Imperative in Modern Retail

AI adoption in retail is no longer optional. It’s essential.

A recent report from Everseen found that 65% of consumers believe AI makes shopping more convenient. At the same time, 63% of senior retail executives say AI is vital to staying competitive.

Across physical stores and e-commerce platforms, AI is already powering:

• - Chatbots and virtual assistants for product discovery.
• - Video analytics for loss prevention.
• - AI-powered POS systems like RadiusAI’s ShopAssist, enabling autonomous checkout.
• - Automated inventory systems that restock based on predictive sales analytics.
• - Optimized supply chains for better route planning and fulfillment efficiency.

These early use cases are just the beginning.

Emerging AI Use Cases Transforming Retail

Retailers are beginning to embrace more advanced applications of AI, including:

• - In-store computer vision: AI-driven cameras analyze customer behavior to deliver personalized recommendations or prompt real-time discounts.
• - Hotspot analysis: Tracking foot traffic to identify bottlenecks or prime product placements for higher vendor slotting fees.
• - Automated product pages: Large language models (LLMs) can instantly generate SEO-friendly descriptions for fast-moving inventory.
• - AI-generated product videos: Generative AI tools can turn static product listings into engaging videos with 360-degree views and voiceover narration.

These innovations enhance both customer experience and operational efficiency.

Barriers to AI Adoption in Retail

Despite the promise, many retailers struggle to move forward with AI adoption due to:

1. Cost Constraints

AI solutions require the ability to process and store vast amounts of data, typically supported by powerful GPU-based infrastructure. For budget-conscious retailers, this level of investment may seem out of reach.

2. Outdated Infrastructure

Many retail systems are still running on legacy infrastructure, making it hard to implement modern cloud or AI-powered tools like dynamic pricing engines or fraud detection systems.

3. Privacy and Regulatory Compliance

Handling customer data brings serious privacy considerations. Retailers must navigate complex regulations like GDPR or California’s CPRA while ensuring secure data encryption and responsible AI use.

4. Talent Shortage

AI expertise is in high demand. Many IT teams in retail lack the specialized skills needed to manage, train, or deploy AI systems effectively.

Why the Right Technology Partner Matters

To overcome these challenges, retailers must select technology partners that offer both innovation and affordability. AMD stands out in this regard, offering:

• - High-performance, energy-efficient CPUs and GPUs tailored for AI workloads.
• - Robust security features to protect customer and business data.
• - A deep ecosystem of partners across OEMs, ISVs, and AI solution providers with retail expertise.

With AMD, retailers gain access to a scalable platform for AI adoption that fits within existing IT budgets.

Success in Action: A DIY Retail Giant’s Transformation

A major home improvement retailer faced a surge in demand during the COVID-19 pandemic. Legacy systems couldn’t keep up – until AMD stepped in.

The company replaced its aging infrastructure with AMD EPYC-powered servers, achieving:

• 25% fewer servers (from 8,800 to 6,600)
• Better in-store performance
• Support for future AI workloads
• Lower total cost of ownership (TCO)

The result: a faster, more scalable IT backbone, ready for AI innovation without ballooning infrastructure costs.

Built for the AI Ecosystem

AMD’s hardware is compatible with popular AI frameworks like PyTorch and TensorFlow, allowing retailers to transition existing models with minimal friction. Through close OEM collaboration, AMD ensures co-optimized systems for maximum performance and security –from the data center to the edge.

Conclusion: Powering the Future of Retail with AMD

As AI becomes central to how retailers operate, AMD delivers the performance, scalability, and cost-efficiency needed to compete in a fast-changing landscape.

Whether you’re optimizing pricing strategies, deploying self-checkout systems, or automating your inventory, AMD’s EPYC CPUs and Instinct GPUs provide the foundation for transformative retail AI.

Now is the time for retailers to modernize their infrastructure, embrace AI, and reimagine the customer experience – with AMD as a trusted technology partner.