Retail Shifts AI Talk From Possibility to Proof
The conversation about artificial intelligence at retail conferences has moved past speculation. Executives now want evidence that AI strategies actually work.
At Shoptalk Spring this year, the focus changed. Two years ago, retailers debated AI's risks and benefits. Last year, they discussed efficiency gains in customer service and inventory planning. This year, brands and retailers came prepared to show results and explain their actual AI strategies.
David's Bridal presented Pearl, an AI-powered wedding planning platform that increased time on site. Macy's demonstrated "Ask Macy's," a shopping assistant that early testing showed drove 400% higher spending among users.
But the real shift wasn't about new tools. It was about strategy. Executives discussed how they're rethinking entire processes, adjusting based on customer behavior, and finding new ways to make their chosen AI tool-whether Claude, Gemini, or ChatGPT-more productive.
Joe Yakuel, CEO of digital marketing agency Within, described the gap between intention and execution. "My question is always, 'Don't just tell me about what you think you can do with AI and what you're trying to do with AI, but: What are you actually doing with AI?' The chasm between those two things is massive," he said.
From Efficiency to New Capabilities
A year ago, companies used AI primarily as a work assistant-asking it to analyze spreadsheets or identify marketing opportunities. That use case remains common. But expectations have shifted.
Yakuel said clients now expect agencies to use AI to build products and achieve outcomes that weren't possible before. The question changed from "How can I serve clients cheaper?" to "How can I serve them better, faster, and with higher quality?"
E.l.f. Beauty's chief digital officer, Ekta Chopra, outlined a four-pillar approach: making humans more productive, establishing authority in AI language models, reimagining processes, and identifying which processes could operate autonomously.
Chopra emphasized an often-overlooked element: change management. "You have to treat AI like a big change for your organization," she said. "You almost have to think about how your workforce is going to evolve, the new titles they might have or the new roles that they have to play."
Reality Checks Persist
Not every AI bet pays off. ChatGPT recently pulled back from Instant Checkout after discovering that shoppers weren't ready to complete purchases within a generative AI interface.
Consumer adoption remains uneven. In an informal poll, 73% of respondents said they used AI for work, but only 6.6% used it for shopping. Jessica Ramirez, co-founder of The Consumer Collective, said consumers are "still trying to figure out what they like about AI usage and what they don't like."
That uncertainty extends to strategy itself. There's no consensus yet on what a proper AI playbook looks like. But that's driving honest conversation across the industry.
Sarah Engel, president of media agency January Digital, said the AI boom has broken down silos. "I kind of love that AI is forcing this issue in this industry of people saying, 'I don't know, what are you trying? What have you seen?' or 'I'm just going to test it. Maybe it won't work, and that's OK,'" she said.
For executives building AI strategies, the message is clear: talk about what you're actually doing, not what you plan to do. Results matter more than announcements. Learn more about developing AI strategies for executives or explore AI applications in marketing.
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