APAC retailers deploy AI to improve loss prevention Predictive tools shift strategy from reactive shrink control to real-time detection. Retailers across Asia Pacific are accelerating the use of generative AI and automation to improve efficiency and red

Predictive tools shift strategy from reactive shrink control to real-time detection.

Retailers across Asia Pacific are accelerating the use of generative AI and automation to improve efficiency and reduce losses, but gaps in execution and workforce support remain, according to George Pepes of Zebra Technologies and Guillaume Sachet of KPMG Singapore.

Adoption is being driven by mounting operational pressures. Sachet said “Gen AI has become a critical enabler of operational efficiency,” as retailers grapple with rising costs, tighter margins, and increasing risk complexity. AI is now being applied to analyse transactions, inventory movements, and exception reports to “surface patterns, anomalies or discrepancies,” enabling faster and more informed decision-making.

Loss prevention has emerged as a key use case. Pepes noted that strategies are shifting “from reaction to prediction,” with technologies such as RFID, computer vision, and AI delivering real-time visibility and predictive insights. These tools are helping retailers address shrinkage more proactively whilst maintaining customer experience.

The financial case for AI adoption is strengthening. More than half of retailers report returns exceeding 10% from AI initiatives, with around one in five achieving returns above 30%. At the same time, two-thirds of retailers are seeing cost efficiencies, reinforcing AI’s role as a driver of profitability.

However, productivity gains are not translating evenly across the workforce. Whilst 84% of store associates report improved productivity, operational friction persists. Pepes said 88% of associates still find it difficult to access timely information, highlighting gaps in system integration and frontline enablement.

Inventory accuracy is emerging as a critical capability. Pepes emphasised that “the winning formula in retail comes down to knowing exactly what you have,” with real-time visibility across supply chains forming the foundation for both operational efficiency and customer satisfaction.

Looking ahead, the industry is moving towards real-time retail models. Sachet said “the next frontier is real-time retail,” where inventory, pricing, and customer interactions are synchronised across channels. This shift is expected to reduce friction in omnichannel journeys and enable more personalised experiences.

AI is also enhancing customer engagement by freeing up staff from repetitive tasks. With 87% of associates saying they can deliver better service using AI tools, retailers are increasingly combining automation with human interaction to improve in-store experiences.

Despite these advances, competitive pressure is intensifying. Sachet noted that “embracing AI gives them a competitive edge,” with 82% of executives recognising its strategic importance.
As AI adoption deepens, the next phase for APAC retailers will depend on closing execution gaps, strengthening real-time capabilities, and ensuring that productivity gains translate into consistent customer and employee outcomes.