The retail and fashion industries are investing heavily in artificial intelligence (AI), committing substantial resources to upgrade technology and improve operational efficiency. While the overall impact of AI deployments remains unclear, companies are allocating large portions of their capital expenditure budgets to digital innovation alongside traditional retail priorities.
Walmart leads the sector’s investment surge, planning to spend between $25 billion and $27 billion on capital projects, which includes technology, surpassing its prior annual expenditure. Other retailers are also accelerating technology spending, with a collective increase nearing a quarter compared to previous forecasts. For example, Dick’s Sporting Goods revealed plans to allocate a significant share of its revenue—approximately 8.5 percent—to capital expenditures focused on supply chain enhancements, in-store fulfillment, and technological capabilities aimed at streamlining operations.
According to a review of financial disclosures from multiple U.S. retail and fashion companies, technology investment is often the second-largest area of spending after maintaining physical store operations. Omnichannel strategies and supply chain improvements emerge as key focuses, reflecting efforts to blend online and offline experiences while increasing efficiency. However, retailers—and the broader corporate world—remain cautious as they experiment with AI integration.
Experts note that the approach tends to be broad but shallow, with AI applied primarily to improve individual productivity rather than delivering measurable gains across organizations or teams. For instance, AI tools might speed up design processes or inventory management, but if other parts of the business, such as marketing or merchandising, do not adapt, the full benefits may not materialize. This piecemeal adoption highlights challenges in converting AI-driven efficiencies into comprehensive business growth.
Investment in AI and digital infrastructure is expected to rise significantly by 2030, with leading tech companies forecasting trillions in spending on AI and supporting data centers. This trend underscores AI's growing strategic significance, even as many retailers continue to define how best to incorporate these technologies sustainably and effectively.