Retailers across Australia and the Asia-Pacific are banking on artificial intelligence to fix old-school retail headaches as shopper satisfaction slips for the second year running.

New research from Zebra Technologies’ 18th Annual Global Shopper Study reveals that 87 per cent of retail leaders in the Asia-Pacific region (APAC) say AI and automation are now critical to cutting operational losses like stock inaccuracies and out-of-stocks. With shoppers growing grumpier about service, it seems tech could be the retail world’s new best mate.

“As the holiday shopping season approaches, the retailers that will stand out are those embracing the ‘phygital’ experience — seamlessly connecting physical and digital through intelligent workflows,” says Nathan Walter, ANZ Regional Sales Manager at Zebra Technologies.

“By harnessing AI, automation, and smarter operations, retailers can deliver faster, more seamless, and personalised experiences for their customers when it matters most.”

Customer satisfaction slump:

The study reveals shopper satisfaction has dipped again this year. In-store satisfaction in APAC dropped to 75 per cent, while online fell to just 69 per cent, continuing a steady two-year decline. Globally, the trend’s the same, with shoppers less patient than ever when shelves are bare or lines are long.

Across both online and in-store experiences, shoppers are demanding more bang for their buck. Almost eight in ten (74 per cent) Aussie and APAC shoppers now say discounts and promotions matter most, thanks to rising prices and inflation pressures. But they’re also getting cranky with out-of-stock items (63 per cent), locked-up products (67 per cent) and a lack of self-checkout options (56 per cent).

The message for retailers is to get the basics right, or risk losing loyal customers.

Retailers under pressure to close the gap

According to the report, there’s often a pretty big mismatch between how well retailers think they’re doing and what customers actually experience.

For instance, 79 per cent of decision-makers believe they’re doing a great job offering shoppers the option to order out-of-stock items, but only 66 per cent of shoppers agree. Similarly, 82 per cent of retailers think checkout times are up to scratch, but just 74 per cent of shoppers feel the same.

“Even small disconnects add up,” says the study. “What feels like a minor service shortfall to a retailer can feel like a broken promise to a shopper.”

No surprises then that 84 per cent of retail decision-makers across APAC say getting real-time inventory synchronisation right is now a top priority.

AI and automation: the retail revolution

AI is taking over the shop floor. Zebra’s research shows that 62 per cent of APAC retailers plan to implement generative AI within five years, outpacing global peers (51 per cent).

Surprisingly, staff are all for it. Eighty-four per cent of retail associates in the region say AI tools make their work less stressful and more enjoyable, while 86 per cent believe the right tech helps them get tasks done faster.

Walter says AI is already helping Aussie and Kiwi retailers improve stock visibility and prevent loss. “With tools like computer vision, RFID, and intelligent automation, retailers can see what’s happening in real time — from the stockroom to the checkout,” he explains. “That means fewer out-of-stocks, less shrinkage, and happier shoppers.”

The human touch still matters

Even as AI and automation take centre stage, the human element of retail isn’t going anywhere. The study found that 73 per cent of shoppers still want to interact with in-store staff, especially when they need help finding products or returning items.

Unfortunately, the study reveals many staff don’t have the right tools to help efficiently. Eighty-eight per cent of associates globally report challenges in getting timely information, which slows service and frustrates both sides.

Zebra’s research with Oxford Economics found that improving these workflows, such as by giving staff mobile devices to check stock or take payments, can boost customer satisfaction by 21 per cent on average.

“Associates bring a brand to life,” Walter says. “When they’re supported with the right tech, they can focus on helping customers instead of chasing stock or fixing broken systems.”

Speed is the new service

Convenience is king to today’s shoppers. Three in four shoppers (76 per cent) say they just want to get in and out quickly, a sign that speed is now synonymous with good service.

That’s why self-checkout lanes, scan-as-you-go tech, and automation are gaining traction with retailers of all sizes. The study found 74 per cent of shoppers think self-checkout is faster than a staffed lane, and most say they’d happily use mobile devices provided by the store to scan and bag items as they shop.

Retailers are getting rewards for investing in automation behind the scenes, too. Those businesses that streamline workflows are seeing up to a 20 per cent jump in employee productivity and up to 1.8 percentage points in revenue and profit growth, according to Zebra’s data.

The rise of Gen AI

The study suggests Gen AI is already transforming retail in real ways. Retail leaders say it’ll help with everything from personalised product recommendations and demand forecasting to dynamic pricing and virtual try-ons.

Shoppers also seem keen to embrace Gen AI. A healthy 69 per cent of shoppers across all generations believe AI will improve their experience, whether that’s through smarter search results, more relevant offers, or faster customer support.

The biggest opportunities, according to decision-makers, lie in AI agents for merchandising (83 per cent) and sales (78 per cent), as well as virtual shopping tools like augmented reality.

“AI is changing how shelves are stocked, how prices adjust in real time, and how shoppers discover products,” the report says. “It’s not about replacing people. It’s about empowering them.”

Walter suggests that the retailers that will win out will be those that blend AI and people power.

“The future won’t be powered by technology or people alone. The winners will be those who combine AI precision with human connection — creating shopping experiences that are seamless, memorable, and personal.”

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