Grocers are quickly embracing AI, research shows

Grocers are dedicating an increasing share of their revenue to technology, and the vast majority feel that the investments are worth it, FMI found. More than half of retailers in the study said they are “optimistic” about the impact their tech spending is having on their sales and profits, and 44% indicated that technology “will change and enhance how we operate in-store,” the association reported.

The share of respondents that said they expect AI and other emerging technologies to “change the way businesses are run” rose to 46% in 2025, up 9 percentage points.

Fifty-nine percent of food retailers that participated in FMI’s study said they use generative AI, compared with 43% a year ago. In addition, the percentage of retailers that have implemented an organization-wide generative AI tool more than doubled year over year, to 40%.

FMI’s research found that retailers are also increasingly focusing on how emerging technologies like AI will impact the customer experience. The percentage of retailers that believe these tools will “change the way consumers shop for groceries” rose to 32%, slightly higher than the figure last year. Almost a fifth said conversational or agentic AI will alter how people shop from groceries.

Food traceability is an area where retailers are adopting technology particularly quickly: While just 17% of retailers used technology solutions for this purpose in last year, 31% plan to add these capabilities in 2026.

Although food retailers displayed a growing willingness to devote money to technology, only about 10% said they believe the systems they are embracing will help them reassign staff. Meanwhile, more than half anticipate that they will increase staffing for data analytics or digital technology specialists.

Grocers are investing in technology against a backdrop of continued financial challenges. Three-quarters of the retailers FMI polled said they believe economic concerns will impact people’s shopping behavior this year, and 70% said they expect their operating costs to increase.

The report is based on responses FMI and David Orgel Consulting collected in February from 70 food retailers and wholesalers as well as information from regulatory documents filed by eight publicly traded companies. The data collectively represent more than 42,000 stores, according to FMI.