A look at retail’s year of AI news

Core Insights - Retailers in 2025 are increasingly focused on AI adoption, but the industry is lagging behind sectors like telecommunications and finance in technology utilization [2][3] Industry Overview - The 2025 AI industry adoption study by the Wharton School indicates that retail is falling behind other sectors despite numerous AI-related announcements from retailers [2][3] - The slower return on investment in retail is attributed to its complex physical operations compared to other industries [3] Retailer Initiatives - Companies like Amazon and Target are actively integrating AI to enhance internal processes and adapt to changing consumer behaviors [4][5] - AI-driven U.S. e-commerce traffic surged by 758% year-over-year between Nov. 1 and Dec. 1, with a 670% increase specifically on Cyber Monday [5] Specific Company Developments - Walmart: Launched generative AI assistants for merchants and customers, integrating AI across its business operations [8][9] - Target: Expanded its generative AI strategy, launching a ChatGPT shopping app and an AI-powered gift finder tool [10][11] - Amazon: Updated seller tools with AI capabilities and introduced a conversational assistant for marketers [13][14] - Levi Strauss & Co.: Announced a partnership with Microsoft to deploy an agentic AI framework across the company [15] - Etsy: Introduced AI tools for sellers and integrated products with ChatGPT's Instant Checkout feature [16][17] - Wayfair: Launched a generative AI tool called Muse for home interior inspiration [18] - Stitch Fix: Developed a style visualization tool using AI to help customers visualize outfits [19] - David's Bridal: Launched an AI-powered wedding planning tool called Pearl Planner [20] - Saks Fifth Avenue: Implemented an AI-powered customer service tool to reduce call volume [22] - Best Buy: Began using AI for customer support and personalized marketing [23] - Guitar Center: Introduced an in-store AI shopping assistant called Rig Advisor [24] - eBay: Launched an AI tool for sellers to enhance product listings and assist in buyer communications [25] - Lowe's: Developed an AI adviser tool named Mylow in partnership with OpenAI [26] - Home Depot: Debuted a suite of generative AI tools called Magic Apron to improve search results [27]