To say that technology is changing rapidly is an understatement. It’s genuinely moving at dizzying speed—and, perhaps unexpectedly, many senior corporate leaders are terrified that it will be them and their teams on the line.

That anxiety is both reasonable and appropriate. When viewed differently, however, it represents an opportunity. This ‘tech phobia’ is spreading, and as technology advances at a rapid pace, businesses, particularly those in retail, may be forced to modify their operations.

Kin + Carta recently conducted a research study titled “2024 Leadership Priorities in Tech: Leading through tech anxiety in retail and distribution.” It was part of our industry-spanning 2024 Leadership objectives in Tech research, which highlighted the objectives and concerns of 800 senior corporate leaders in the United States and United Kingdom.

The sample consisted of c-suite executives and senior decision makers from organisations with a turnover of £800 million or more, and it discovered that 94% of leaders expressed some level of tech fear among senior leadership in their organisations.

It also emphasized that certain areas of technology were particularly concerning for retailers, namely disruptive advances that would fundamentally alter how businesses function.

Not yet, Skynet?

According to the study, one-third (32%) of retail CEOs expressed tech worry about the influence of AI and machine learning on the industry. Almost half (48%) of those polled said they were anxious because technology was moving too quickly.

This is hardly surprising given the recent number of column inches devoted to AI and the fact that 22 percent of employees say they use generative AI on a regular basis in their work.

While advancements in AI and machine learning present numerous benefits for retail firms, such as automating services, forecasting demand, and improving customer experience, they can also offer a substantial risk.

Generative AI projects are a major source of anxiety. Leaders expressed concerns about employment displacement, data privacy, algorithm bias, and the potential introduction of errors in decision-making.

And yet, this is where the money is going. According to the report, AI and machine learning are the most important investment priorities for retail and distribution, with 17% of retailers investing more in this area than any other. So, while it may cause enormous dread, accepting this course will also result in great capabilities.

Understanding Digital Transformation and Data
More over three-quarters (78%) of retail CEOs polled said investing in digital transformation was either crucial or necessary for business success. Of them, 89% agreed that investing in digital transformation was important within the next year.

In practical terms, this means:

61% of retail leaders utilized digital transformation to describe customer experience improvements, indicating that many retailers place the customer at the center of their digital transformation efforts. Many of those polled prioritized specialized marketing, personalized experiences, and data-driven customer retention.
Nearly half of retail leaders (42%) highlighted data foundations and analytics as critical to digital transformation, recognizing the value of using data insights and analytics to inform decision-making in areas ranging from supply chain streamlining to sales optimization.
Those polled highlighted cloud computing as a key emphasis area, with 48% of retail and distribution executives linking digital transformation to cloud modernization. Retail prospects are increasingly changing online, therefore leaders are investing in cloud-based systems and applications to ensure seamless integration, data integrity, and little disruption.
43% of retail organizations stated that digital transformation entails the automation, updating, and streamlining of internal procedures.
All of this emphasizes the importance of making the correct investments if shops are to adapt to the new realities of the digital age. Data will be key to this effort, since only 30% of CEOs surveyed currently fully trust their data, while a significant 19% trust it’somewhat’ or ‘little.’

Retail leaders expressed worries about discrepancies in definitions and techniques, many siloed systems, and the challenges of linking data across channels – despite the fact that data will always be at the heart of any investment in AI, CRM systems, or other digital transformation efforts.

After all, data architecture is about more than just providing an accurate image of the organization. Improving data foundations also prepares a firm for the future, addresses major sources of worry, and aids in realizing the potential of emerging technology.

Put your money where your worries are
The fact that many shops are investing in the areas causing them the most tech angst is a good indication. They understand the growth attitude required to live peacefully in these new changes.

There is little doubt that worry provides a chance for this learning and progress, even though, as mentioned in the research, economic uncertainty has damaged most retail and distribution organizations’ short-term (74%) and long-term (75%) goals.

In fact, nearly two-thirds of retail organizations (64%) want to invest more in digital transformation activities this year than in past years.

That matters because technology enables not only better procedures but also a better customer experience both in-store and online. If merchants embrace new technology with a customer-centric mindset and a willingness to learn from tests and mistakes, they will always outperform those who play it safe.