Retail’s risky AI commerce bet

Core Insights - The retail industry is facing significant changes due to the rise of AI-driven commerce, which may lead to disintermediation and loss of data control for retailers [1][6][7] Group 1: AI Impact on Retail - AI-driven U.S. e-commerce traffic surged by 758% year over year from Nov. 1 to Dec. 1, with Cyber Monday traffic increasing by 670% [2] - Retail executives believe that AI will transform retail similarly to how the internet did, with a focus on direct consumer access [4][6] - Retailers are increasingly collaborating with AI platforms like ChatGPT and Gemini to enhance customer engagement and streamline shopping experiences [3][5][15] Group 2: Data Ownership and Customer Interaction - The shift to external AI platforms raises concerns about data ownership, as retailers may lose insights into customer interactions [7][10] - A Deloitte report indicates that 81% of retail executives think generative AI will weaken brand loyalty by 2027 [7] - Retailers may find themselves acting as fulfillment companies rather than maintaining direct relationships with customers due to the influence of AI agents [12][21] Group 3: Future of Shopping Experience - About half of retail executives predict the collapse of the traditional multistep shopping journey by 2027, favoring a single AI-driven interaction [17] - AI agents could automate the shopping process, learning user preferences and making purchases on their behalf [18][19] - The integration of AI technology in stores may enhance customer interactions, allowing associates to provide more personalized service [22][24]