How Retailers Can Actually Realize the Value Promised by AI Solutions

If you've ever walked the floors of NRF or any major retail trade show, you've probably seen it all:

Bold claims, eye-catching demos, and promises of AI-driven solutions that will revolutionize your pricing strategy and add 5% more profit to your bottom line.

It all sounds incredible, but the reality is, retailers face these grand promises not just at trade shows but every day when evaluating potential partners. The challenge isn't finding a provider who claims to deliver value—it's figuring out who can actually make it happen.

Cutting Through the Noise

With so many solutions out there, how do you know which one is right for your business? Many retailers quickly realize that turning AI promises into real results isn’t as simple as signing a contract.

Here are some of the biggest hurdles:

Getting Started Is Harder Than It Seems – Some solutions require extensive data preparation and integration before you even see the first results. Are you ready for that commitment?

Hidden Dependencies – Will you need to purchase additional data (competitive data?) to make the solution work effectively? Immediate value downer if you find out too late...

Usability Matters – If your teams can’t easily navigate the software or if it takes weeks of training to get up to speed, adoption will suffer. They have a day job - don′t forget.

Limited Scope – Many pricing tools focus on just one part of the puzzle, leaving gaps in other critical pricing disciplines causing for software islands for specific parts of a workflow.

When Promises Fall Short

When a solution doesn’t deliver as expected, the impact can be significant. Instead of boosting profitability and competitive advantage, retailers often end up with expensive tools that don’t quite fit their needs. This can lead to:

• Delays in achieving expected ROI.
• Increased operational costs from additional data requirements.
• Resistance from employees who struggle to adapt to the new system.

Mismatched Expectations

The core problem?

There's often a disconnect between what solution providers promise and what retailers actually experience once implementation begins.

Many solutions are designed with a one-size-fits-all mentality that doesn't always align with the specific challenges and nuances of individual retailers.

Finding the Right Partner

So, how can you avoid the pitfalls and ensure you're selecting a solution that will truly deliver? Consider these key factors:

1. Ease of Integration – How easily can you get your data into the system? Look for solutions that simplify the process with automated tools.
2. Comprehensive Coverage – Does the solution cover all the pricing strategies you need, from base pricing to promotions and markdowns?
3. User-Friendly Experience – Will your team be able to use the tool effectively without extensive training? The best solutions guide users intuitively, like a co-pilot, rather than requiring them to master complex interfaces.
4. Proven Results – Instead of simply looking at whether industry peers are using a solution (after all, do you really want to use the same system as your competitors?), retailers should focus on how they want to innovate their business process. It's crucial to evaluate what the provider has already innovated and how it aligns with your strategic goals.
5. Adoption Support Embrace innovative approaches when considering how your users will interact with software. Bold approaches, such as interactive chats and email digests to interact with, might prove more effective than traditional UIs, which look like relics of the past compared to what is possible today. The right solution should enable your workforce effortlessly.

The Bottom Line

Retailers can achieve the value promised by AI-driven pricing solutions — but only if they take a thoughtful and strategic approach when selecting the right partner.

It's about going beyond the flashy claims and logo walls to truly understand whether a solution aligns with your business needs, processes, and goals.

With the right approach, realizing the full potential of AI in pricing can become a reality.