Artificial intelligence (AI) is no longer a future concept; it’s reshaping retail today. From personalized promotions to predictive inventory, retailers are leveraging AI to redefine the shopping experience. If utilized correctly, AI has the potential to reimagine the consumer experience beyond the store shelf.
This begs the question: what is happening with AI in retail? In what areas is generative AI (genAI) technology impacting retail, and how can companies utilize this revolutionary climate to help improve their business?
Where AI Is Changing Retail
AI is a critical piece of the shopping puzzle, and retailers are taking notes. The lines between brick-and-mortar and e-commerce shopping experiences are becoming blurred. The omnichannel experience taking over is interwoven with three key uses of AI:
- Personalization: Retailers can deliver tailored promotions and product recommendations based on real-time and historical customer data, e.g., the Amazon recommendation engine online presents shoppers with related products based on previous purchases. As AI tailors recommendations, it also enables leaner inventory strategies, helping to ensure shelves are stocked with what customers are most likely to buy.
- Operational Efficiency: AI assists in reducing waste (products or time) and improves margins through intelligent inventory forecasting, automated replenishment, and AI-driven order fulfillment. In addition, AI-driven demand planning helps avoid overstocking perishable goods or those with shorter shelf lives.
- Predictive Decision Making: AI can anticipate trends, manage product pricing, and forecast in-person or online foot traffic based on external factors such as weather, holidays, and more. Predictive analytics and trend data allow retailers to react to competition quicker, adjust pricing based on reliable data, and improve inventory management based on consumer behavior.
Consumer Use of AI
According to a Darden School of Business Report, nearly 60% of consumers are already using AI to help them shop.1 While retailers begin implementing AI into their operations, they may also benefit from understanding how their customers use the technology during the shopping process.
For online shoppers, image-based search is extremely popular. Consumers can take a picture or copy an image of a product and use a browser or app to locate that specific item. This has accelerated shopping activity, as items can be purchased almost instantly, depending on the specificity and reliability of the search.
Shoppers are also using AI tools to compare prices and build shopping lists. Companies should keep this in mind, especially when building e-commerce and in-store promotions. AIO and SEO keywords and visibility in the market or search engine can make or break a product’s popularity.
Workforce Transformation
AI is redefining roles in retail and commerce, with the technology being touted as a useful teammate to work alongside employees. Modern tools are enabling retail store managers to go from personnel overseers to data-driven decision makers. These tools can help automate repetitive tasks (such as inventory tracking, demand forecasting, and customer service via chatbots and other AI agents) and allow workers to interpret data and deliver personalized customer experiences based on findings.
In addition, organizations are creating new roles that focus on AI and operational efficiency. For example, those that are integrating modern enterprise resource planning (ERP) systems need prompt engineers, AI trainers, and retail data analysts to drive innovation and interpret the shopper data that AI produces.
AI has its place in retail, and it is not a replacement for an entire workforce. Rather, retailers are strategically using AI to augment roles and provide the opportunity for all employees to be data-driven decision makers. Retailers who invest in educating and training their employees and embedding AI into their core functions may be the ones who thrive.
Moving Forward With AI
Change can be intimidating, but the possibilities that AI opens for businesses are exciting. The next wave of commerce may prioritize AI for predictive and personalized experiences (or customization and automation). Algorithms, suggestive selling promotions, smart shelves, dynamic pricing, and other AI tools may become the norm for customers and employees. In the past, retailers relied on historical data to make decisions. Now, AI is offering real-time insights and forward-looking strategies that can help enhance the full shopping journey.
Embracing AI for Retail Resilience
AI is proving to be a strategic imperative (not just a tool) in the retail industry. Retailers who embrace AI-driven personalization, operational agility, and predictive insights are positioning themselves to lead in a competitive market. The future of commerce will be shaped by those who act now.
Retail leaders must invest in AI education, integrate intelligent systems, and empower their teams to become data-driven decision makers. The time to innovate is now, because in retail, tomorrow’s success depends on today’s transformation.
For more information on our assurance, tax, and consulting services for retail, please reach out to a professional at Forvis Mazars.
- 1“Nearly 60% Use AI to Shop – Here’s What That Means for Brands and Buyers – The Darden Report,” news.darden.virginia.edu, June 17, 2025.