March 4, 2025
AndreyPopov/Depositphotos.com
How Should Retailers Address AI Transparency?
Store signage and self-checkout notifications rank as top methods for communicating artificial intelligence (AI) use at the store level by both retailers and consumers, according to a study from Everseen, a specialist in computer vision AI.
Exploring in-store transparency measures, the survey of 200 loss prevention retail executives and over 1,000 U.S. consumers (who have confirmed use of self-checkout technology) taken in January found:
- 44% of retailers use signage at store entrances to disclose the use of AI, with 64% of consumers finding this approach most helpful.
- 39% of retailers use pop-up notifications at self-checkout, with 50% of consumers finding this approach most helpful.
- 35% of retailers use signage within aisles, with 44% of consumers finding this approach most helpful.
- 44% of retailers include details on their company websites, with 38% of consumers finding this approach most helpful.
Consumers in the survey were found to be enthusiastic about AI, with 55% of consumers comfortable with AI and advanced retail technology, 65% believing AI makes shopping more convenient, and 59% believing AI, such as product recognition at checkout, can help reduce theft. However, only 31% feel they have “fully grasped” AI, and 72% say AI technology needs greater transparency in grocery and retail stores.
According to the study’s respondents, if they discovered their favorite retailer was using vision AI without transparency, 24% would be wary of shopping there, 21% would only shop there if “absolutely necessary,” and 17% would stop shopping there altogether.
At the same time, Everseen’s study showed that retailers “acknowledge their responsibility in AI transparency, with most sharing accountability with vendors for privacy measures.” Of the loss-prevention retail professionals surveyed, 80% turned to AI vendors — either partnering with AI vendors (61%) or fully relying on them (19%) for the technical responsibilities of privacy compliance.
Other surveys show consumers have trust issues with AI:
- A survey of about 1,000 U.S. adults taken in February 2025 and commissioned by e-commerce marketing firm Omnisend found that 58% of shoppers worry about AI’s use of their personal data when shopping with AI shopping assistants.
- A YouGov survey of about 1,100 adults taken in March 2024 found that the dominant feeling Americans have about artificial intelligence is “caution,” cited by 54%; followed in the top-five by “concerned,” 49%; “skeptical,” 40%; “curious,” 29%; and “scared,” 22%.
- A Gallup survey of about 5,800 U.S. adults conducted in spring 2024 found the top way businesses can reduce concerns around artificial intelligence was being transparent about how AI is used in business practices, cited by 57%.
Technology concerns by consumers have been elevated amid a strong pushback against online data tracking in recent years. A survey from late 2022 of about 1,000 U.S. adults commissioned by The Drum found that 81% were concerned about how websites were using their data at the time, although a significant 43% simply accepted all cookies online.
BrainTrust
Georganne Bender
Principal, KIZER & BENDER Speaking
Neil Saunders
Managing Director, GlobalData
David Naumann
Marketing Strategy Lead - Retail, Travel & Distribution, Verizon
Recent Discussions
Discussion Questions
How blatant should notices of AI usage be at the store level for retailers?
Are consumer concerns over AI usage offline or online similar or much different than those over online data tracking?
Poll
Loading …
Analogue signage to inform people about AI use. How very, err, old fashioned! But seriously, I assume from the article that this is about the use of AI at self checkout. If so, this seems like an oddly specific thing to poll customers about – and I don’t see why customers would be so concerned about that particular application. There are many other dimensions of AI use, and the use of customer data in general, that are more concerning.
I agree with Neil. I am surprised that “58% of shoppers worry about AI’s use of their personal data when shopping with AI shopping assistants.” The main way retailers will use personal data is if shoppers identify themselves, which is a way of opting-in, to receive personalized recommendations and promotions. The media has created a lot of attention around privacy concerns for AI and consumers are probably more sensitive to this issue than they otherwise would be. The reality is that in the near future, AI will be infused in virtually all applications and we will begin to assume that AI is being used everywhere.
Another AI thought piece…really?!?! Never have so many written so much, about so little.
Increasing the transparency of AI technology in grocery and retail stores can significantly enhance consumer confidence. When customers understand how AI impacts pricing, product recommendations, and inventory decisions, they are more likely to feel confident in their fairness and accuracy.
Transparency in the implementation of artificial intelligence can increase customer loyalty and create a positive perception of brands that prioritize this aspect.
In this instance it seems the use of cameras to support vision AI is the driving force behind the notification of, “AI in use.” Otherwise, why would a shopper care about the underlying technology in use? Will this drive a longer in-store listing of technologies in use. Full tech stack. Cloud service provider(s). Data security.
The research as provided in the release summary is a bit vague in areas.
At a time in history where technology advances at such a rapid pace each day, sharing it’s use with consumers in a transparent way is a proactive step to inform and educate ways in which AI can be used in positive ways that benefit the consumer now and in the future. There are invariably going to be examples of this technology being used improperly and for less than honorable ways in the months and years ahead. Offsetting this bad behavior before it comes to light in a positive and proactive way will provide a counter argument that it’s not the technology that is bad, but that there are bad actors, both inside and outside of retailing, that are the issue and not the technology itself.
I haven’t seen signage in any retail store announcing the use of AI and as a consumer it doesn’t affect me one way or the other. I laughed at Neil’s comment about analog signage to alert shoppers to AI signage.
It’s the other uses of AI that bother me. As a freelance writer I have lost content jobs to companies who now rely AI instead. Readers can tell, just like we can tell when AI is used to comment or on a social media post.
But on the sales floor? If AI helps consumers make legit better decisions, then go for it.
Given the level of caution, concern, and skepticism mentioned in the article, retailers would be crazy to be anything but abundantly transparent about using AI…AND…abundantly careful that it was always an enhancement to the shopping experience. As in…anticipating and providing more information earlier in the shopping process. Make me smarter. Save me time. Do NOT offer me enhanced visuals that make the product look better than it really is. Do NOT persistently upsell or be overly aggressive in building basket size. That will wear thin in about 3 seconds. Retailers have a choice to either build confidence or skepticism for AI. A slower path to confidence beats a quick path to skepticism. Heightened levels of skepticism will take a looooooong time to undo and heal.
The key to being transparent about AI usage is to be… transparent. Some consumers are concerned about AI “crossing the line” and using information in nefarious ways. Three things to consider:
- A transparency statement is (as the article points out) helpful. Customers should be informed when AI is being used to track their behaviors, buying patterns, frequency, shopping habits, etc.
- Tell the customer how you’ll use their personal information. Our customer service and CX research found that 70% of customers are concerned about privacy.
- It won’t be long before regulations are passed to protect the consumer. This is no different from the way cookies on a website have been regulated.
AI transparency in retail shouldn’t just be a box to check, it’s an opportunity to build trust. Notices should be clear and visible, but more importantly, they should be educating. Consumers don’t need to know that AI is being used, they need to understand how it enhances their experience and safeguards their data.
When it comes to concerns, offline AI usage feels more immediate and personal than online tracking, especially when tied to surveillance. Retailers must address this by being upfront, offering clear benefits, and giving customers some control over their data.
AI transparency builds trust. Show customers how it helps them, and they’ll feel safer and more confident.
More Discussions
Did Holiday 2025 Mark a Shift Into the ‘Agentic Shopping’ Retail Era?
Salesforce data suggests that holiday 2025 was the retail period in which agentic shopping turned the…Should Facial Recognition for Theft Get Another Look?
Retailers and consumers are hotly debating facial recognition tech: theft deterrent, privacy overstepping, or both?Will Retail Bifurcation Persist (or Intensify) in 2026?
Recent Placer.ai data indicated a deepening divide within retail, at least pertaining to foot traffic.
Analogue signage to inform people about AI use. How very, err, old fashioned! But seriously, I assume from the article that this is about the use of AI at self checkout. If so, this seems like an oddly specific thing to poll customers about – and I don’t see why customers would be so concerned about that particular application. There are many other dimensions of AI use, and the use of customer data in general, that are more concerning.
I agree with Neil. I am surprised that “58% of shoppers worry about AI’s use of their personal data when shopping with AI shopping assistants.” The main way retailers will use personal data is if shoppers identify themselves, which is a way of opting-in, to receive personalized recommendations and promotions. The media has created a lot of attention around privacy concerns for AI and consumers are probably more sensitive to this issue than they otherwise would be. The reality is that in the near future, AI will be infused in virtually all applications and we will begin to assume that AI is being used everywhere.
Another AI thought piece…really?!?! Never have so many written so much, about so little.
Increasing the transparency of AI technology in grocery and retail stores can significantly enhance consumer confidence. When customers understand how AI impacts pricing, product recommendations, and inventory decisions, they are more likely to feel confident in their fairness and accuracy.
Transparency in the implementation of artificial intelligence can increase customer loyalty and create a positive perception of brands that prioritize this aspect.
In this instance it seems the use of cameras to support vision AI is the driving force behind the notification of, “AI in use.” Otherwise, why would a shopper care about the underlying technology in use? Will this drive a longer in-store listing of technologies in use. Full tech stack. Cloud service provider(s). Data security.
The research as provided in the release summary is a bit vague in areas.
At a time in history where technology advances at such a rapid pace each day, sharing it’s use with consumers in a transparent way is a proactive step to inform and educate ways in which AI can be used in positive ways that benefit the consumer now and in the future. There are invariably going to be examples of this technology being used improperly and for less than honorable ways in the months and years ahead. Offsetting this bad behavior before it comes to light in a positive and proactive way will provide a counter argument that it’s not the technology that is bad, but that there are bad actors, both inside and outside of retailing, that are the issue and not the technology itself.
I haven’t seen signage in any retail store announcing the use of AI and as a consumer it doesn’t affect me one way or the other. I laughed at Neil’s comment about analog signage to alert shoppers to AI signage.
It’s the other uses of AI that bother me. As a freelance writer I have lost content jobs to companies who now rely AI instead. Readers can tell, just like we can tell when AI is used to comment or on a social media post.
But on the sales floor? If AI helps consumers make legit better decisions, then go for it.
Given the level of caution, concern, and skepticism mentioned in the article, retailers would be crazy to be anything but abundantly transparent about using AI…AND…abundantly careful that it was always an enhancement to the shopping experience. As in…anticipating and providing more information earlier in the shopping process. Make me smarter. Save me time. Do NOT offer me enhanced visuals that make the product look better than it really is. Do NOT persistently upsell or be overly aggressive in building basket size. That will wear thin in about 3 seconds. Retailers have a choice to either build confidence or skepticism for AI. A slower path to confidence beats a quick path to skepticism. Heightened levels of skepticism will take a looooooong time to undo and heal.
The key to being transparent about AI usage is to be… transparent. Some consumers are concerned about AI “crossing the line” and using information in nefarious ways. Three things to consider:
AI transparency in retail shouldn’t just be a box to check, it’s an opportunity to build trust. Notices should be clear and visible, but more importantly, they should be educating. Consumers don’t need to know that AI is being used, they need to understand how it enhances their experience and safeguards their data.
When it comes to concerns, offline AI usage feels more immediate and personal than online tracking, especially when tied to surveillance. Retailers must address this by being upfront, offering clear benefits, and giving customers some control over their data.
AI transparency builds trust. Show customers how it helps them, and they’ll feel safer and more confident.