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.

Bealls to debut mobile app

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.

Banana Republic debuts TikTok content series in bid for younger shoppers

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.

But despite the seemingly endless AI mentions from retailers in 2025, the industry is falling behind others. There was no shortage of AI-related announcements from retailers in 2025. It was researched, designed, and written by human writers, editors, analysts, and illustrators. 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. Retailers that hesitate on this investment risk falling further behind eTailers and brands already scaling AI adoption at pace. There is also potential for these organisations to scale their businesses in the near term while keeping FTEs consistent.

• The tool can make recommendations based on various preferences, including price limits.
• The tool uses AI to create an image of a client’s likeness wearing shoppable outfits, helping them decide on products.
• 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.
• Three strategic capability stacks – merchandising, customer growth and digital activation, and technology – will account for around 70% of above-store employee costs for destination retailers (Exhibit 3).
• 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.

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. E-commerce marketplace company eBay joined the list of companies that launched an AI tool for sellers to build out product listings. Musical instruments retailer Guitar Center debuted an in-store AI shopping assistant called Rig Advisor that customers access through a QR code. The retailer has utilized the technology internally to speed up merchandise ideation and review applications for third-party marketplace sellers. Three strategic capability stacks – merchandising, customer growth and digital activation, and technology – will account for around 70% of above-store employee costs for destination retailers (Exhibit 3).

The tool can make recommendations based on various preferences, including price limits. Consumers can also use it to ask for product recommendations. The moves feed into a larger, centralized “super agent” strategy from Walmart that integrates similar technology across the business. Here’s a list of companies that made concrete generative AI https://www.firstsign.us/5-key-takeaways-on-the-road-to-dominating-12 announcements throughout the year. Specifically on Cyber Monday, AI traffic to U.S. retail sites grew 670%.

Tractor Supply taps former Home Depot exec as chief technology, digital officer

We are built for this era of unprecedented change — bringing strategic clarity rooted in over 60 years of deep domain knowledge, combined with applied AI shaped by our practitioners. Boston Consulting Group bridges the gap between ambition and outcomes for the world’s leading companies and organizations. This is the year to define your AI endgame, commit to an investment plan and kick off end-to-end operating model redesign. Financial returns will play out over a 3–5-year horizon as workflows and systems modernise and adoption grows. Returns extend far beyond cost and productivity with impacts on accelerated decision-making, innovation and growth. The biggest value comes from widespread adoption which starts with people.

Agentic commerce: The infrastructure is ready for AI agents. Is your store?

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• Financial returns will play out over a 3–5-year horizon as workflows and systems modernise and adoption grows.
• The free tool, called Pearl Planner, features an AI assistant, registry integration and vendor recommendations.
• This website is owned and operated by Informa TechTarget, a global network that informs, influences and connects the world’s technology buyers and sellers.
• “It’s still a very small base,” Nikki Baird, vice president of strategy and product at retail technology provider Aptos, told Retail Dive.
• 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.

Retail may https://onlinedelhi.info/business_contact_details/218/Centre-for-Retail-Management/index.htm be lagging behind other industries in the adoption of artificial intelligence, but 2025 was still transformative. An Informa PLC company. By signing up to receive our newsletter, you agree to our Terms of Use and Privacy Policy.

In parallel, retailers must rapidly lift the AI fluency of their organisation. To keep up with customers, manufacturers and eTailers, they will need to fundamentally reshape how they work, with AI at the heart – not just as a tool to plug in. Within a store, customers will seek out confidence, service and fulfilment. The functionality uses a photo and title provided by sellers to then generate AI-powered product details and categories. The executive hinted at the potential for further agentic AI integrations in the near future.

Organisational Capabilities: Leaner, Smarter and More Strategic Organisations

Etsy also debuted new AI-powered tools for sellers to support tasks such as naming listing titles. Walmart launched a generative AI assistant for merchants called Wally that helps with tasks such as data entry and advanced calculations. AI tools that may have been used were limited to secondary production processes that passed thorough human review. In parallel, digital, IT and AI operating expenditure is set to increase by at least one third as retailers fund subscription AI platforms, cloud computing, model operations, cybersecurity and enterprise-wide reskilling. And less will flow to store fit outs and hardware as retailers look to lighter maintenance and selective upgrades focused on safety, loss prevention and targeted task-level automation (Exhibit 4).