The AI Adoption Gap

The technology is here. The money is flowing. So why are so many retailers still standing at the starting line?This week’s Retail Reality Check digs into the defining challenge of 2026 retail technology: the gap between access to AI tools and actual workforce engagement with those tools. IHL Group VP of Technology Jerry Sheldon put it directly: companies are declaring themselves “AI ready,” buying the software, checking the box. But the million-dollar question is whether workflows are actually changing or whether these powerful tools are gathering dust on a digital shelf. This episode moves through three distinct layers of the adoption challenge. First, the back office and supply chain, where Macy’s $640 million robotic fulfillment hub shows what massive capital commitment looks like while the company’s own COO admits they’re still in the “very early innings” of generative AI. Second, the frontline, where the UFCW’s campaign to ban electronic shelf labels and Tesco’s 1,200-store body camera rollout show the deeply human dimension of technology adoption. Third, a lightning round of this week’s implementations, from Heineken’s 150-brewery generative AI network to Loblaw’s ChatGPT shopping app, that illustrates just how wide and fast this wave is moving.FREE Month of JustAskGreg.ai - use the code REALITYCHECKEpisode Timestamps•      [00:00]  Welcome and housekeeping — sponsorshipdeadline for IHL Retail AI Pulse Webinar (March 6)•      [00:43]  This week’s theme: the AI adoption gapbetween access and actual workforce engagement•      [01:11]  The back office story: Macy’s “Bold NewChapter” and $640M robotic fulfillment hub•      [02:13]  The bigger picture at Macy’s: AI for demandforecasting, SAS Customer Intelligence 360, and the COO’s “very early innings” admission on GenAI•      [02:56]  The frontline challenge: ESLs, the UFCWcampaign, and technology’s human dimension•      [03:31]  Tesco deploys body cameras in 1,200+ UKconvenience stores for employee safety•      [04:11]  Lightning round: supply chain implementations— US Foods, Associated Wholesale Grocers, Railway, Edgewell, Heineken•      [05:00]  Lightning round: customer-facing — 7-Eleven,Friar Tux, White Castle, Amazon Rufus•      [05:18]  Strategic-level partnerships: Loblaw, CNA,Unilever, Wesfarmers + Google Cloud •      IHL Group 2026 Retail Transformation Study:https://www.ihlservices.com/product/how-retail-leaders-outperform/•      IHL Group: Adapt or Be Outpaced — Tech Imperative forRetail’s Midmarket:https://www.ihlservices.com/product/adapt-or-be-outpaced-tech-imperative-for-retails-midmarket/•      IHL Group: AI Access vs. AI Engagement — Closing theAdoption Gap (Jerry Sheldon):https://www.ihlservices.com/newsletter/?issue=february-21-2026#25791•      JustAskGreg.ai — IHL’s AI-powered retail analyst:https://www.justaskgreg.ai•      IHL Services Newsletter, Feb 21, 2026:https://www.ihlservices.com/newsletter/?issue=february-21-2026Resources Mentioned