Agentic AI is redefining consumer journeys—and creating value for companies that embrace its full potential. A new tool demystifies hype about AI by identifying different combinations of exposure and resilience to potential disruption and spelling out appropriate strategic responses for each one. Given the scale of operating-model change required, we expect total annual investment levels to rise by around one third over the coming years, driven by a combination of capex uplift and digital and IT operating spend.

Lasting impact and a truly AI-enabled operating model require the largest workforce shift since the introduction of the personal computer, multiyear investment in re-skilling, real-time data, human-AI workflows, platform modernisation and application development. E-commerce marketplace Etsy was one of the first companies — alongside Shopify — to debut products on ChatGPT’s Instant Checkout feature, allowing platform users to buy products without leaving the chat. To respond takes more than applying AI tools to legacy retail models; the real winners are redesigning their CVPs, economics, capabilities and operating models end to end. Retailers must protect the integrity of their AI models, training data, interaction interfaces and agentic tools against threats like prompt injection, data poisoning and others. Given the pace of AI’s evolution, retailers should look to off-the-shelf applications that offer scale and continuous upgrades and reserve in-house development for applications that differentiate their CVP, economics or channel experience (e.g. pricing).

Home improvement retailer Lowe’s launched an AI adviser tool named Mylow developed in partnership with https://bestfitnesstores.com/top-suppliers-of-fitness-and-gym-equipment-in-the-us-and-canada OpenAI. The assistant lets users input an artist, song, tone or gear-related questions to receive real-time recommendations tailored to their specific location’s inventory options. The free tool, called Pearl Planner, features an AI assistant, registry integration and vendor recommendations. Denim brand Levi’s — which in 2023 created controversy with the introduction of AI-generated models — this year announced a deal with Microsoft to deploy an agentic AI framework across the company. For the holidays, Target also debuted an AI- powered gift finder tool on its own e-commerce website. However, the actual base of users remains modest when looking at larger e-commerce retail traffic, per Adobe’s findings.

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• Additionally, the return on investment is slower for retail, likely due to its more complex physical operations compared to other industries.
• While tech giants dominate headlines, a handful of under-the-radar AI startups are making waves in retail with hyper-specific…
• Etsy also debuted new AI-powered tools for sellers to support tasks such as naming listing titles.
• Artificial intelligence is rapidly reshaping retail, but not in the ways consumers might immediately notice.
• Ten years after AlphaGo’s match against Go champion Lee Sedol, today’s AI still isn’t tapping into the machinery that made that win possible.
• Yet most retailers are held back by fragmented, low-quality data due to years of underinvestment.

Rather than navigating store aisles or clicking through categories on a webpage or via a search bar, customers are more likely to discover products that meet their needs on interfaces that best grasp their context, constraints and preferences. The next five years will reward retailers that rebuild their customer value propositions, economics, capabilities and tech stacks around AI, versus those that treat it as just another tool to plug into today’s model. We explore how retailers can accelerate their response in 2026 and catch up with consumers, manufacturers and eTailers who are ahead on AI adoption. Home Depot debuted a set of generative AI tools called Magic Apron intended to improve search results and answer questions. Home goods retailer Wayfair launched a generative AI tool, dubbed Muse, that allows users to find inspiration through AI images of home interiors. In addition to working with OpenAI for employee training courses on AI, Walmart also enabled the ChatGPT Instant Checkout feature for chat users to shop Walmart products without leaving the platform.

• According to BCG’s AI Radar (a global survey of 2,400 business executives), four out of five CEOs are more optimistic about the ROI of their AI investments than they were a year ago and nearly all CEOs believe that AI agents will produce measurable returns in 2026.
• Furniture retailer Ashley debuted the ability for customers to buy products directly through the AI search platform Perplexity and pay using PayPal.
• The outpacing of retail is surprising, “given the number of potential use cases around customer experience, workforce management, marketing, supply chain, and pricing,” the report noted.
• In addition to working with OpenAI for employee training courses on AI, Walmart also enabled the ChatGPT Instant Checkout feature for chat users to shop Walmart products without leaving the platform.
• AI is reshaping four core dimensions of retail, from how customers discover products to where and how value is created.

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• Returns extend far beyond cost and productivity with impacts on accelerated decision-making, innovation and growth.
• From mass retailers to apparel brands, companies across the industry laid bare their efforts to utilize — and adapt to — AI internally and in consumer-facing ways.
• Without intervention, retailers risk being reduced to background utilities in agent-controlled marketplaces.
• Given the pace of AI’s evolution, retailers should look to off-the-shelf applications that offer scale and continuous upgrades and reserve in-house development for applications that differentiate their CVP, economics or channel experience (e.g. pricing).
• On the other hand, evaluation retailers – those that rely on traffic from AI platforms – will face margin pressure as they compete on cost, fulfilment speed and agent visibility, with margin increasingly skewed toward a small set of scale and specialist winners.

AI is transforming the way customers shop, how retailers work and where profit flows. It’s available to MyLowe’s rewards members through the retailer’s website, though the company said it would later debut through its app with voice capabilities. Wedding attire retailer David’s Bridal launched an AI powered tool that helps couples manage wedding tasks. Personal styling e-commerce company Stitch Fix launched a https://fahzaenterprise.com/how-ecommerce-is-changing-the-freight-forwarding-industry/ beta version of a style visualization tool called Stitch Fix Vision.

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In AI-mature organisations, above-store2 2 Refers to the retail organisation outside of field management and in-store teams/leadership. As AI increasingly touches customer data and decisions, cyber security becomes non-negotiable. That means establishing responsible AI guardrails and human-AI decision rights, and building investment frameworks that track value, not just activity.​ Executive teams need to set clear value priorities, commit to AI governance and oversee enterprise-scale adoption. This website is owned and operated by Informa TechTarget, a global network that informs, influences and connects the world’s technology buyers and sellers. Consumers can then shop linked products using the “Explore this Muse” button.

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For consumers, the company added an « Interests » feature to a small subset of U.S. app and mobile users, allowing shoppers to enter prompts into the AI-backed tool to receive products recommendations. The retailer also debuted a customer-facing AI agent dubbed Sparky to help plan purchases and summarize product reviews, as well as marketplace seller AI tools to speed up go-to-market rates. On a company earnings call, Best Buy CEO Corie Barry shared that the electronics retailer began using AI for customer support services, personalized email marketing and product search tools. Furniture retailer Ashley debuted the ability for customers to buy products directly through the AI search platform Perplexity and pay using PayPal. The retailer launched an in-platform ChatGPT shopping app, allowing customers to make multi-item purchases, buy fresh food products and select from several fulfillment options. In the face of these changing customer behaviours, widespread adoption of algorithms and new channels, retailers will need to make dramatic changes over the next few years to evolve their operating models, capabilities and investment priorities.