# Retailers Struggle with Data Insights as AMD Drives AI Adoption

> As retailers grapple with increasing complexity and consumer demands, AMD's AI solutions provide a critical pathway to transforming data into actionable insights, ensuring operational efficiency and improved customer satisfaction.

**Source**: amd.com | **Published**: 2026-10-16 | **Type**: article

## Key Facts

- 73% of retailers can't extract actionable insights from data, highlighting a major operational gap.
- 97% of retailers plan to increase AI spending, indicating a shift towards tech-driven competitive strategies.
- AMD powers 7 of the 10 largest Fortune 100 retailers, showcasing its dominance in retail infrastructure.
- Qubit's 13% cost savings using AMD in cloud workloads suggests significant financial efficiency potential.
- Palexy's AMD-powered analytics achieved 50% better performance, revealing competitive advantages in retail AI.

## Summary

AMD's recent focus on retail AI solutions highlights a critical evolution in how retailers can leverage technology to enhance customer experiences and operational efficiency. As the retail landscape becomes increasingly complex, with heightened consumer expectations for seamless interactions across digital and physical platforms, the need for effective data utilization has never been more pressing. Currently, 73% of retail businesses struggle to convert the vast amounts of data they generate into actionable insights, which is essential for maintaining profit margins and improving customer satisfaction.

The shift toward AI in retail is not merely a trend; it reflects a fundamental infrastructure challenge. Retail AI encompasses a range of applications that span from data centers to cloud environments and into store operations. This multifaceted approach requires retailers to deploy the right computing resources strategically across various domains. AMD positions itself as a key player in this space, offering solutions that enhance performance and efficiency without escalating costs or latency.

Retailers face the daunting task of managing workloads that include enterprise resource planning (ERP), customer analytics, and inventory management. AMD’s EPYC server CPUs are already integral to the operations of seven of the ten largest Fortune 100 retailers, underscoring their established presence in the market. These processors provide the necessary performance to support core retail functions while allowing for scalability as demand fluctuates, particularly during peak shopping periods.

The cloud component of retail AI is equally significant. Retailers must adapt quickly to changing customer demands, and AMD’s technology supports this flexibility. For instance, Qubit, a provider of online personalization tools, transitioned its product recommendation engine to Google Cloud instances powered by AMD EPYC CPUs, resulting in a 13% reduction in costs. Such efficiency gains are crucial for retailers looking to optimize their cloud expenditures amidst rising operational demands.

At the store level, AMD's technologies facilitate advanced applications such as intelligent checkouts and inventory monitoring. These edge AI workloads require rapid data processing to deliver real-time insights. AMD’s solutions, including EPYC server CPUs and Ryzen Embedded processors, provide retailers with the necessary capabilities to implement these technologies effectively. For example, Palexy’s retail analytics platform, which analyzes in-store video data, achieved a 50% performance improvement and a 30% cost reduction after adopting AMD-powered Google Cloud VMs.

As AMD continues to innovate, the introduction of accelerated computing through AMD Instinct GPUs and the ROCm open software platform allows retailers to tackle more demanding AI workloads. This flexibility enables businesses to tailor their AI strategies to specific operational needs rather than applying a one-size-fits-all approach. Furthermore, with the increasing volume of data being processed, security remains a paramount concern. AMD’s EPYC CPUs incorporate Infinity Guard security features designed to protect sensitive customer and operational data, a vital consideration as retailers expand their digital services.

Looking ahead, the integration of AI in retail is poised to redefine competitive dynamics within the sector. Retailers that effectively harness these technologies will not only enhance customer experiences but also gain a significant operational advantage. As AMD continues to refine its offerings, the emphasis on customized solutions will likely drive further innovation in retail AI applications. Companies that invest in these technologies can expect to see improved efficiency, cost savings, and ultimately, stronger customer loyalty in an increasingly data-driven marketplace.

## Entities

- **Companies**: AMD, Qubit, Palexy
- **Products**: AMD EPYC server CPUs, AMD Ryzen Embedded processors, AMD Instinct GPUs, AMD ROCm open software platform
- **Technologies**: computer vision, edge AI, cloud computing, data analytics
- **Organizations**: Fortune 100 Retailers

## Key Concepts

AI in retail, data center infrastructure, cloud computing for retail, edge computing, operational efficiency, customer insights, security in data management, personalization in retail

## Definitions

- **AI**: Artificial Intelligence refers to the simulation of human intelligence in machines that are programmed to think and learn.
- **Edge Computing**: Edge computing is a distributed computing paradigm that brings computation and data storage closer to the location where it is needed.
- **Data Center**: A data center is a facility used to house computer systems and associated components, such as telecommunications and storage systems.
- **Cloud Computing**: Cloud computing is the delivery of computing services over the internet, allowing for scalable resources and services.
- **Computer Vision**: Computer vision is a field of AI that enables computers to interpret and make decisions based on visual data from the world.

## Use Cases

- Intelligent checkout systems
- Inventory monitoring
- Customer flow analysis
- Video analytics for retail
- Personalized product recommendations
- Loss prevention strategies

## Frequently Asked Questions

**How can AI improve retail operations?**

AI can enhance retail operations by analyzing large amounts of data to provide actionable insights, streamline processes, and improve customer experiences. This can lead to better inventory management and personalized marketing strategies.

**What role does AMD play in retail AI solutions?**

AMD provides a range of hardware solutions, including EPYC server CPUs and Ryzen Embedded processors, that support various retail workloads from the data center to the store edge. Their technology helps retailers optimize performance and efficiency.

**What are the benefits of using cloud computing in retail?**

Cloud computing allows retailers to scale their operations quickly, manage costs effectively, and adapt to changing customer demands. It also facilitates the use of advanced analytics and personalized services.

**How does edge computing benefit retail?**

Edge computing enables real-time data processing closer to the customer, which is crucial for applications like intelligent checkout and inventory monitoring. This reduces latency and improves the overall customer experience.

**What security measures does AMD provide for retail data?**

AMD offers security features such as AMD Infinity Guard, which helps protect sensitive data and systems as they move between the data center, cloud, and store edge. This is essential for maintaining customer trust and compliance.

## Links

- [Read on Welcome.AI](https://welcome.ai/content/retailers-struggle-with-data-insights-as-amd-drives-ai-adoption)
- [Original source](https://www.amd.com/en/partner/browse-by-resource/partner-insights-articles/powering-smarter-retail-with-ai.html)
- [AMD](https://welcome.ai/company/amd): Featured company

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Source: Welcome.AI | https://welcome.ai/content/retailers-struggle-with-data-insights-as-amd-drives-ai-adoption