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Artificial intelligence (AI) is no longer a futuristic concept in retail; it’s a present-day revolution reshaping how consumers shop, businesses operate, and employees work.This transformation is happening rapidly and comprehensively, and the National Retail Federation’s (NRF) 2026 ‘big Show’ in New York City served as a pivotal showcase for these advancements [[1]].
NRF Board Chair Bob Eddy underscored the industry’s resilience and continued strength, emphasizing retail’s role as a “stabilizing force” in people’s lives, supporting over one in four american jobs. This stability,he argued,is the foundation for ongoing innovation and growth. Eddy’s central theme, “What’s happening next is happening now,” highlighted the urgency of scaling AI to drive tangible results, urging attendees to focus on future possibilities rather then simply new technologies.
The Shift to Agentic Commerce and Collaborative AI
The conversations at NRF 2026 signaled a clear evolution beyond basic AI applications like chatbots. The focus has shifted towards sophisticated systems capable of automating complex decisions across both online and brick-and-mortar operations. Retailers are increasingly exploring both partnerships with established AI technology companies and the progress of in-house AI agent capabilities [[2]].
A significant declaration came from Walmart, which unveiled a collaboration with Google to integrate Walmart and Sam’s Club products into Google’s AI assistant, Gemini. This partnership will allow AI agents to facilitate shopping across online stores and streamline delivery options for both in-store and club items [[1]].
the Rise of Agentic AI
the industry is entering an era of “agentic commerce,” where AI transcends simple efficiency gains and begins to proactively predict outcomes and execute complex, multi-step actions throughout the customer journey.This represents a significant leap from AI’s initial role in optimizing specific tasks or enhancing recommendations. AI agents are demonstrating increasing proficiency in resolving customer issues,a trend that became particularly noticeable during the 2025 holiday shopping season.
Data from Salesforce reveals a ample increase in AI agent utilization during the 2025 holiday season, with a 142% rise in tasks handled and a 126% increase in customer service interactions compared to the preceding two months [[1]]. This surge underscores the growing capacity of AI to manage complex customer needs and deliver efficient support.
AI Empowering Retail Operations and the Workforce
The value of agentic AI systems – those capable of independent decision-making and task completion – is becoming increasingly apparent. Profitmind, a retail technology company, showcased its agentic AI platform designed to automate decisions related to pricing, inventory, and planning. The platform leverages machine learning, generative AI, and agentic AI to provide retail teams with faster, more profitable insights and recommendations [[1]].
in the food service sector, Papa Johns announced a partnership with Google Cloud to deploy a unified voice and text AI ordering system powered by Google Cloud’s Food Ordering agent. This system aims to streamline the ordering process across multiple channels, including mobile apps, websites, and in-car systems, building on the success of AI-powered drive-thru automation [[1]].
Enhancing the Customer Experience with AI
The widespread adoption of generative AI (GenAI) by consumers is significantly impacting the retail landscape. Accenture research indicates that two-thirds of consumers now utilize GenAI tools, and a similar proportion of frontline retail workers recognize their potential to improve the work experience [[1]].
As AI tools become more sophisticated, shoppers have access to real-time data, reviews, and competitive pricing, frequently enough exceeding the information readily available to store employees. This presents a challenge for retailers to differentiate themselves and maintain a competitive edge. REI CEO, Mary Beth Laughton, emphasized the importance of the human connection as a key differentiator, noting that while AI can provide speed and efficiency, it cannot replicate the “lived experience” and personalized guidance offered by educated store associates [[1]].
REI’s “green vests” – highly trained and experienced store associates – are positioned as “trusted guides” who can provide expert advice, personalized recommendations, and services like backpack fittings. The retailer’s recent holiday campaign featured these associates, and REI is now exploring ways to integrate them into the digital experience through testimonials and videos, resulting in increased conversion rates.
looking Ahead: Scaling AI and Prioritizing the Human Element
The reinvention of retail through AI is well underway. The focus has shifted from initial innovation to execution, scalability, and the realization of tangible value. The retailers poised for success will be those who invest responsibly in AI technology, rethink their operational workflows, and, crucially, prioritize their employees and the human element of the shopping experience [[1]], [[3]].
