Tata Consultancy Services has unveiled findings from its Global Retail Outlook 2026 study, revealing significant gaps between retailers' recognition of AI's importance and their actual implementation of advanced AI technologies. The comprehensive study, based on responses from more than 800 senior retail executives across 18 countries, highlights the challenges facing the retail industry in scaling AI adoption beyond basic applications.

Limited Progress in Advanced AI Implementation

The study reveals a stark disconnect between retailers' aspirations and reality in AI deployment. While AI ranks among the top enablers for retailers, most organizations remain in the early stages of implementation.

Key Findings on AI Utilization

The research identifies several critical areas where retailers are underutilizing AI capabilities. Following cost optimization, AI-powered technologies rank among the most essential capabilities for 2026, particularly adaptive AI-powered decision-making capabilities which ranked second and third out of 10 priorities for retailers.

Current AI Implementation Status:

• 39% of retailers deploy AI-powered demand sensing for supply chain resiliency
• 37% use loyalty insights to inform channel or store experience strategies
• 45% apply loyalty insights to pricing and promotions
• 33% see digital literacy programs as a way to achieve organizational transformation

Industry Leadership Perspectives

Krishnan Ramanujan, President of Consumer Business Group at TCS, emphasized the transformative potential that remains largely untapped. He noted that while retailers are united in believing AI will define the next era of competitiveness, most have only scratched the surface of its potential. The true opportunity lies in shifting from isolated experiments to pervasive intelligence embedded across the value chain.

Vision for Perceptive Retail

TCS has introduced its vision for "Perceptive Retail™," which integrates AI, machine learning, and multi-agent systems to help retailers interpret signals, adapt operations in real time, and orchestrate decisions across the value chain. This approach addresses the paradigm shift needed in a market rapidly moving toward intelligent, experience-led retail.

Cheenttan Voraa, Global Head of Retail Consulting at TCS, highlighted that the retail sector stands at a defining crossroads. While leaders recognize AI as essential technology for competitive advantage, most organizations remain early in their journey toward true enterprise intelligence.

Challenges and Priorities

The study identifies workforce skills gaps as one of the biggest challenges facing retailers, ranking second only to financial pressures. Retailers express strong urgency around cybersecurity and privacy, particularly regarding data locked inside loyalty programs where fewer than half can effectively use such information for marketing ROI, pricing, or product planning.

The comprehensive study spans five major retail subsectors and emphasizes how operational pressures are currently shaping retail transformation, with executives increasingly viewing digital intelligence and agility as inseparable capabilities for future success.

Tata Consultancy Services has announced a major expansion in Brazil with the construction of its largest delivery centre in Londrina. The IT services giant will invest USD 37 million in the state-of-the-art campus, which is expected to create over 1,600 new jobs and be completed by 2027.

Investment Details and Infrastructure

The new facility represents one of the largest investments made by TCS in Latin America, demonstrating the company's long-term commitment to the region. The campus will be developed across multiple phases with comprehensive infrastructure planning.

Strategic Significance and Government Support

The inaugural ceremony was held at Palácio Iguaçu in the presence of Carlos Roberto Massa Júnior (Ratinho Júnior), Governor of the State of Paraná, Brazil, and Bruno Rocha, Country Head of TCS Brazil. Governor Ratinho Junior emphasized that this investment will transform Paraná into one of the major centers of IT services in Brazil, highlighting the state's investment in qualified training and its extensive network of public universities focused on technological areas.

Bruno Rocha noted that the facility will represent a future-ready innovation hub designed to enable digital transformation for clients and contribute to the region's sustainable growth. The campus will offer best-in-class job opportunities for local talent while reinforcing TCS's commitment to Brazil and the entire Latin America region.

Operational Consolidation and Technology Focus

As the largest multinational in Londrina, TCS currently employs around 2,500 people operating out of three leased buildings. The new campus will enable consolidation of the existing workforce into a single location while providing additional capacity for new hires.

The facility will function as a strategic hub for collaboration and innovation, focusing on business transformation through advanced technologies:

• Artificial intelligence
• Cybersecurity solutions
• ERP implementations
• Google, AWS, SAP, and Microsoft technologies

AI Innovation Initiative

Starting in January 2026, TCS offices in Londrina launched AI labs as part of the global tcsAI Fridays initiative. This program serves as a key enabler to accelerate AI adoption and drive an AI-first culture, supporting TCS's vision to become the world's largest AI-led technology services company.

Established Market Presence

TCS has maintained operations in Brazil for over two decades, with delivery centers in Londrina, São Paulo, and Rio de Janeiro. The company serves more than 200 clients across sectors including banking, insurance, mining, healthcare, manufacturing, retail, and telecommunications. TCS has been recognized as one of the top employers in Brazil for 10 consecutive years, reflecting its deep-rooted presence and people-first approach.

In September 2025, the company opened its first TCS Pace Port™ in São Paulo to further transform businesses in Brazil and Latin America through innovations in artificial intelligence and emerging technologies. The new Londrina campus will complement these existing operations and strengthen TCS's position as a leading technology services provider in the Latin American market.