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Retail AI 2026 predictions: Retailers, consumers driving big growth

Artificial intelligence is taking retail by storm. All one needs to do is scan retail customer experience headlines this past year and experts predict there’s much more to come in 2026.

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December 16, 2025 by Judy Mottl — Editor, RetailCustomerExperience.com & DigitalSignageToday.com

Artificial intelligence is taking retail by storm. All one needs to do is scan retail customer experience headlines this past year. Here's just a small sampling from the past few months.

Given the lightning rod role AI is playing in retail it's not big surprise 92% of U.S. retailers will be increasing AI investment in 2025 and AI is on track to hit $52.45 billion by 2030.

One huge driver for retail AI deployment is the fact shoppers are embracing AI. Shoppers will turn to AI companions in 2026 and embrace relevant innovation in the new year. Seventy percent of shoppers have used AI tools and features to assist with their shopping journey — and in 2026, consumers will begin to depend on intelligent agents to plan, compare and then complete purchases, according to a press release on the predictions.

To get insight on where AI in retail is heading in 2026 RetailCustomerExperience reached out to retail industry and tech pundits for their predictions. Here's the scoop.

Retailers rethinking e-commerce

According to Sherry Smith, president of retail media at Criteo, consumers will now expect AI-style conversations on retail sites, pushing retailers to rethink ecommerce and ads for an agent-driven era.

"Advertisers will need new tools as traditional keyword-based strategies become outdated in AI-driven environments," she said in an email interview.

Swinging back to human support

New data from Kinsta signals a major shift in 2026: bots are out, humans are in. Roger Williams, community manager at Kinsta, predicts a full swing back to human-centered customer support as businesses start to realize AI-only support is breaking trust and customer loyalty.

"In 2025, we saw a huge focus on human support. As enterprises continued to double down on AI, we saw a large amount of backlash. In 2026, we expect to see this backlash evolve into action," he said in an email interview.

According to Kinsta's survey, 93% of consumers prefer human interaction, 84% say humans are more accurate and 80% believe AI is used more to cut costs than improve service.

Chatbots becoming more human

Phil Smith, CEO at QPC Group, noted that AI voice and chatbots are currently available in a limited range of personas.

"The challenge being that these default personas don't allow the business to differentiate nor do they align with the brand and its values which risks the business compromising or losing its tone of voice and its identity," he said in an email interview.

He expects voice and chatbots will be able to contextualize customer intent in real-time to determine changes in sentiment and whether they need to be referred to self-service or a human agent with the requisite skills.

AI is all about data

Cloudera's Director of Global AI, Neelabh Pant, said the biggest differentiator next year won't be who uses AI, but who connects their data well enough to make it work.

"AI is quickly becoming essential for retail success. Experts estimate it could unlock between $240 and $390 billion in value across the industry. With 91% of retail leaders investing in AI and early adopters seeing returns six times faster, retailers that build a strong foundation now are on track to capture nearly three-quarters of the $164 billion retail AI market by 2030," he said in an email interview.

Pant said retailers seeing the most ROI from their AI are the ones taking control of their data and connecting it across their entire business.

"That means linking everything, from real-time store displays and customer interactions to order histories and warehouse inventory, no matter where that information is stored. When data systems work together, retailers can see the full picture of their operations and customers. This connected approach leads directly to better customer experiences, like more personalization, smoother operations, and faster responses to customer needs," he said.

AI playing role in digital signage

Mike Tippets, vice president at Hughes, thinks digital signage is about to become one of the most underestimated AI and connectivity stories of 2026.

"As retailers, QSR brands, transportation hubs and service providers accelerate their digital experience plans, screens are turning into intelligent, self-optimizing systems that personalize content, manage themselves and stay connected in places where Wi-Fi cannot," Tippets said in an email interview.

He expects AI-powered personalization will move from concept to reality.

"AI and sensor data will allow screens to tailor content to each viewer, increase engagement and prevent downtime through advanced analytics and self-healing capabilities."

AI driving retail shift

Alessio Bonfietti, chief science officer at XTEL, predicts 2026 will mark a fundamental shift in how retail operates — moving from AI as a support tool to AI as the primary decision-maker in both commerce, operations and customer experience.

His key predictions for 2026:

AI agents go mainstream in shopping: Consumers will increasingly outsource large portions of shopping journeys to AI assistants, fundamentally changing how brands reach customers.
Agent-driven commercial planning: Trade promotion, forecasting, and commercial planning will be AI-generated with human approval rather than human-led, a reversal of today's model.
Real-time commercial decisioning: Retailers will dynamically optimize pricing, promotions, and assortment in near-real time, responding to consumer behaviors and market conditions instantly.

"The catch? Data fragmentation across markets and retailers will still be the biggest barrier, slowing automation and degrading AI performance just as the technology is ready to scale. The companies that take the steps now to prepare for this shift will have a distinct advantage," Bonfietti said in an email interview.

AI driving personal experience

Harvey Ma, VP and general manager of Sam's Club Member Access Platform, predicts that amid the growth of AI, retailers and brands will invest in physical, personalized experiences.

"Elevated in-store experiences will remain a differentiator for brands and retailer s— and one of the most impactful ways to connect with customers even in the age of AI," he said in an email interview.

It's all about connection

Kelly Hall, chief customer officer, Quickbase, predicts that after a year of "AI-powered" everything, connection will be the big competition differentiator.

"Leaders are confronting a simpler truth: you can't automate your way into loyalty. Customers aren't asking for more tools; they're asking for less friction and more moments that feel like someone actually understands their job," Hall said in an email interview. "We don't need a future where people keep pace with machines. We need systems designed to keep pace with people — their judgment, their work, their reality. In 2026, the real innovation won't be 'humans in the loop.' It will be humanity at the center."

Consumer tapping AI big time

Charlie Casey, CEO of LOyaltylion, expects big change given how AI agents are increasingly part of product searches and shopping journeys.

"Brands will continue to face the challenge of understanding how to optimize for AI-led discovery into the new year. They'll need to rethink SEO, step up content production and consider more creative ways of getting their brand out there," he said in an email interview.

AI reshaping commerce

Jim Herbert, CEO of Patchworks, expect AI will be the shopper's best friend.

"AI is already reshaping commerce, but in quieter, more useful ways than people think. The focus needs to be on how technology actually helps retailers, not just chasing the latest trend," he said in an email interview.

"We see agentic commerce and AI acting on behalf of the shopper as the natural next step. It's not science fiction. The technology already exists for an AI assistant to understand your habits, check your calendar and anticipate what you might need to buy next. For example, if it knows you're attending a black-tie event next week and haven't bought an outfit recently, it could suggest options and even complete the transaction. Or a connection with Strava could result in new trainer suggestions once you've done 500 miles."

AI changing everything

AI, according to Grant Deken, head of product at Klaviyo Service, will change everything but the storefront.

"The way consumers are using LLMs as a retail channel is mostly for discovery but AI will likely play a larger role in purchasing in the coming year. Building an AI agent is easy. Building a good one that understands nuance, context, and trust is hard," he said in an email interview. "For retail especially, many current customer service bots are still optimized for efficiency and not empathy. The future of agentic commerce isn't about replacing human-driven service. It's about redefining it. In the coming year, we will see brands leaning into AI to personalize the whole shopping experience on their sites, no matter who their customers are. In turn, humans will be freed up for higher value tasks that strengthen customer relationships."

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About Judy Mottl

Judy Mottl is editor of Retail Customer Experience and Digital Signage Today. She has decades of experience as a reporter, writer and editor covering technology and business for top media including AOL, InformationWeek, InternetNews and Food Truck Operator.

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