The INAIR project consortium is pleased to announce the publication of our latest policy paper, "Recommendations for Equitable and Sustainable AI Adoption in European Retail SMEs."

This document represents the synthesis of extensive research conducted under the project, which is funded by the European Union’s Horizon Europe Research and Innovation programme. The paper aims to provide evidence-based guidance for policymakers, educational institutions, and industry stakeholders regarding the integration of artificial intelligence within the European retail sector, with a specific focus on micro, small, and medium-sized enterprises (MSMEs).

Addressing the Challenges of Digital Transformation

The retail sector faces a critical juncture. While AI technologies offer significant potential to enhance productivity, optimize inventory management, and improve customer engagement, adoption rates among smaller retailers remain uneven.

Our research identifies several multifaceted barriers to effective implementation, including:

• Competence Gaps: Both operational and strategic challenges exist in preparing the workforce and management for AI-driven transformation.
  Infrastructure Constraints: Many retail MSMEs lack the foundational digital infrastructure, data quality, and system integration required for effective AI deployment.
• Organizational and Financial Hurdles: Limited internal capacity to manage organizational change, coupled with concerns regarding return on investment, often restricts SMEs to limited, small-scale AI usage.
• Trust and Governance: The need for clear guidance on transparency, accountability, and compliance with frameworks such as the EU AI Act and GDPR remains a significant concern for smaller businesses.

A Coordinated Approach to Policy

The paper argues that AI adoption should be treated not as a purely technological issue, but as a broader organizational transformation process. Consequently, the recommendations presented in this paper advocate for a multi-stakeholder strategy involving policymakers, the retail industry, and educational institutions.

Key policy recommendations include:

• Establishing Accessible Upskilling Pathways: Promoting modular, role-specific, and practical training that moves from basic digital readiness to applied AI competence.
• Supporting Leadership and Management: Providing targeted advisory services and readiness assessments to help retail leaders manage AI adoption and organizational change.
• Embedding Trustworthy AI: Developing accessible, sector-specific compliance resources that simplify regulatory requirements for SMEs.
• Sustainable Financial Mechanisms: Support integrated packages that include training, advisory, and infrastructure support.

Looking Forward

The insights gained from the INAIR project underscore the necessity for coordinated action to ensure that the benefits of AI are accessible across Europe’s diverse retail ecosystem. By prioritizing inclusive access to skills, infrastructure, and trustworthy governance, stakeholders can help preserve economic cohesion and fair competition within the sector.

We invite stakeholders, policymakers, and industry partners to review the findings and recommendations in the full policy paper, which is now available for reference at https://doi.org/10.5281/zenodo.20343218.