Grocery Industry Accelerates AI Investments

A majority of food retailers are expanding technology spending despite thin profit margins. The Food Retailing Industry Speaks 2026 report shows that 68% of grocers now use artificial intelligence, up from 47% a year earlier, and 59% employ generative AI tools. Retailers allocated about 2% of sales to technology in 2025, a figure that has doubled from the prior year, and 71% expect higher tech budgets in 2026.

Investments are targeting both customer‑facing and back‑end operations. Albertsons launched an agentic shopping assistant and a proprietary system to assess fresh‑strawberry quality in warehouses. Other chains are partnering with AI firms for forecasting, pricing, promotions and labor‑management tools. Executives cite the need for clean, integrated data and organizational alignment to unlock the full value of AI.

Overall, grocers view AI as a strategic lever to improve margins, reduce shrink, and enhance the shopping experience, even as they contend with inflation, supply‑chain disruptions and rising labor costs.