A recent study has revealed a significant delay in the adoption of artificial intelligence (AI) within New Zealand‘s retail sector, particularly when compared to retail industries in Australia and Singapore. This gap highlights the potential for New Zealand’s retail workforce to benefit from technological advancements, especially considering the higher adoption rates seen in neighboring regions.
The research, conducted by UKG and involving 213 retail workers and managers in New Zealand, found that only 33% of respondents are currently utilizing AI and automation tools in their workplace. This figure is strikingly lower than Singapore, where an impressive 92% of retail workers reported AI usage, and Australia, where the adoption rate stands at 46%.
In New Zealand, the existing use of AI technology mainly focuses on improving everyday work experiences. Among current AI users, 64% acknowledged enhancements in customer sentiment analysis, 55% noted improvements in automating employee scheduling, and 48% pointed to the automation of staff management processes, such as time tracking, attendance monitoring, and leave management. These findings emphasize AI’s ability to streamline operations and improve workforce efficiency where it has been adopted.
Despite the comparatively low AI usage, there is growing interest and openness among New Zealand’s retail employees toward incorporating these technologies into their work environment. A notable 77% of respondents expressed a willingness to adopt AI if it would improve their work experience. This enthusiasm highlights a readiness for change and innovation in the sector, with 67% of workers expressing a particular interest in using AI for staff management improvements, 47% looking forward to better customer sentiment analysis, and 44% seeking automation in inventory management.
The motivation behind this push toward AI and automation appears to stem from a desire for greater efficiency and more streamlined workflows. Many retail workers see the potential of technology to simplify their daily tasks, allowing them to focus on more strategic aspects of their roles.
However, the research also sheds light on several challenges currently faced by New Zealand’s retail workers. According to the survey, 37% of workers reported experiencing burnout in their roles. Key factors contributing to this feeling of fatigue include being short-staffed (67%), dealing with poor management (63%), and wanting higher wages (62%). These figures underline the broader concerns within the workforce that could be alleviated through technological interventions, such as AI-driven staff management solutions.
Alex Catteau, Vice President of Sales in Australia and New Zealand at UKG, discussed the implications of these findings in detail. He emphasized the pressing need for retailers in New Zealand to embrace AI technologies to keep pace with their counterparts in Australia and Singapore. “Our research demonstrates that New Zealand retailers are significantly lagging behind in AI adoption compared to other countries in the region. To stay competitive, it is essential that the retail industry adopts these technologies to better support employees in delivering high-quality service and meeting business objectives.”
Catteau also noted that the retail landscape is undergoing rapid transformation, with evolving consumer expectations and technological advancements reshaping the way retailers operate. He believes that integrating AI into retail operations will not only help businesses retain top talent but also enhance their overall competitive edge. “With changing consumer demands and the advancements in technology, the adoption of AI in retail will be critical for businesses aiming to retain their workforce and maintain a competitive advantage in the market,” Catteau added.
The lag in AI adoption presents both challenges and opportunities for New Zealand’s retail industry. On the one hand, the industry risks falling further behind if AI is not integrated into its operations. On the other hand, with the clear willingness of workers to embrace AI, there is a significant opportunity for retailers to enhance operational efficiency, improve employee satisfaction, and better respond to the shifting demands of consumers.
By prioritizing AI and automation, New Zealand retailers can not only address existing workforce challenges, such as burnout and understaffing, but also strengthen their market position. As the retail environment continues to evolve, adopting AI will be essential in creating a more resilient, adaptable workforce capable of thriving amidst future challenges. Ultimately, leveraging AI technologies will play a pivotal role in ensuring the long-term success of New Zealand’s retail sector.
