AI
Retail, tech experts share AI predictions for 2025
Retail, brand and technology leaders offer up what they expect AI will be doing in terms of retail customer experience in 2025.
December 31, 2024 by Judy Mottl — Editor, RetailCustomerExperience.com & DigitalSignageToday.com
As Kathy Kimple, executive director of strategy at OSF Digital, explains in her blog at RetailCustomerExperience, AI is shaping the retail industry in various ways including hyper-personalization of customer experiences, automating tasks to maximize profitability, and increasing employee satisfaction.
In fact, a good majority, 71%, of U.S. consumers believe blended experiences of AI and human interaction will always be needed in retail and 44% said AI helped retailers and brands create more personalized shopping experiences.
Over half of consumers, 58%, believe generative AI has already improved the online shopping experience, and 52% are likely to use gen AI tools to help with clothing purchases. A hefty number of consumers, 71%, believe using generative AI to produce images of them wearing a product can boost their confidence in making a purchase and 66% want brands to use purchase history and other data to make shopping experiences more relevant to their needs.
So given it's clear AI is only going to expand its reach and impact within the retail and consumer segment come 2025, RetailCustomerExperience reached out via email to a bevy of retail and brand leaders to get their AI prediction for the new year.
Here's the feedback.
Randy Mercer, chief strategy officer, 1WorldSync:
While only about a third of shoppers trust AI shopping tools to give accurate product information, they're still willing to use them. Why? Because shoppers want better, easier ways to buy.
The key is getting it right. When AI provides accurate product descriptions, relevant search results and helpful bundle suggestions, shoppers are happier.
Looking ahead to 2025, stores need to ensure that their AI actually works and improves shopping. If their AI recommendations aren't helpful or trustworthy, customers will shop elsewhere with stores that use AI more effectively.
Pascal Malotti, global retail strategy lead and strategy director, Valtech:
As we approach 2025, the retail industry is poised for a transformation driven by AI.
Moving beyond basic personalization, AI will enable retailers to create truly immersive, hyper-tailored experiences that deepen customer connections. Today's consumers seek more than just efficiency; they crave experiences that resonate emotionally. Retailers who can deliver these meaningful, personalized moments will earn lasting loyalty.
This new year, retailers will lean on AI to craft hyper-personalized shopping journeys, drawing on real-time customer data to shape each interaction. This will go beyond product recommendations to create experiences that feel uniquely tailored to the individual — for instance, offering curated outfit suggestions based on past purchases and browsing behavior or sending a notification with a special discount on a frequently bought item as the customer enters the store. These thoughtful touches foster loyalty through connection rather than convenience.
Keith Nealon, CEO, Bazaarvoice:
As we move into 2025, AI and machine learning will reshape retail supply chains, driving efficiency and adaptability.
More importantly, as the pace of product life cycles quickens, predictive analytics can help retailers anticipate shifts and restock faster, avoiding costly shortages or oversupply. From demand forecasting to personalized shopping experiences, technology is transforming retail at every touch point, enabling brands to build deeper connections and respond dynamically to consumer needs.
These technology advancements empower retailers to make informed real-time decisions that improve operational efficiency and consumer satisfaction.
Randy Carr, CEO, World Emblem:
AI-driven customization is the next big wave for apparel manufacturers and will dramatically transform the sector in 2025.
Customers increasingly want personalized, high-quality products, and AI will empower manufacturers to deliver them efficiently and at scale. In 2025, Randy predicts that over 70% of emblem orders will be customized using some form of AI, with AI streamlining design, production and delivery to meet those demands.
Beyond customization, AI will enhance predictive maintenance, quality control and inventory forecasting, optimizing the entire manufacturing flow. Those who integrate AI will likely reduce waste, cut costs and improve customer satisfaction — critical factors in staying competitive, especially in a sector where customization and quick turnaround are increasingly demanded.
Keri Rich, VP, product management, Lucidworks:
I expect to see different generative AI-powered experiences woven seamlessly into the entire commerce search and discovery experience next year, including saying goodbye to the search bar.
We've already seen plans from companies like Amazon to use Gen AI to expedite customer research and simplify product comparisons.
Retailers first need to understand which parts of their shoppers' journey could benefit from enhanced personalization and improved efficiency, and then develop the AI solutions to help them get there.
Jason Grunberg, CMO, Bluecore:
Retailers know generative AI is going to help them solve problems, but many haven't yet nailed down what they're going to solve for.
In the coming year, we'll see more retailers use AI for use cases beyond driving efficiencies and automating content, to solve larger problems plaguing their customers. And when they can identify where their customers' problems intersect with company challenges–and solve for them both with AI — they'll drive business growth in the process. For example, Amazon introduced its AI shopping assistant Rufus to make it easier for shoppers to find products and quickly get their questions answered, but the technology also increases conversion and revenue.
Retailers can solve a multitude of customer problems with AI and 2025 will be the year that they put it into action. Ultimately this sets the foundation for a more agentic future where consumers themselves use AI to handle research, discovery, selection and more, so that consumer life becomes easier.
Craig Crisler, CEO, SupportNinja:
Mark my words: 50% of AI projects will fail to scale in 2025.
Why? Because companies are underestimating the complexity and overhyping the quick wins.
But here's the upside — those failures will push businesses to rethink their approach. The winners in this space will be the companies who bring in expert partners, who know how to blend human intelligence with AI to create a scalable, resilient CX model. In 2025, brands that don't adopt AI-human hybrid teams for customer experience will find themselves irrelevant — fast. AI alone will not save you. Human empathy and AI efficiency must work together to meet customer expectations in real-time. Outsourcing companies that can deliver this powerful hybrid will own the future of CX. Brands who don't make the shift will be outpaced and outperformed.
Eric Williamson, CMO, CallMiner:
The adoption of AI is already revolutionizing how customer experience teams operate. Yet, not all implementations are driving the value that organizations expect.
Our research indicates many contact center and CX leaders struggle to identify which AI technology best meets their business needs (37%), and more than a quarter (27%) don't know how to measure the ROI of their AI investments. To combat these challenges, we've started to see organizations form AI councils or hire chief AI officers — aimed at guiding procurement, implementation and full enterprise adoption. I expect these initiatives and hires to proliferate in 2025.
On the one hand, educated adoption decisions can help ensure that your AI investments are delivering the value you expect, whether that's improving CX, driving operational efficiency, supporting contact center agents or other goals. On the other hand, having an unnecessary number of decision makers involved can slow or even halt procurement processes, causing organizations to fall behind the AI curve. Organizations must find the balance between agility and responsible AI adoption if they're going to remain competitive.
Dan Rasmussen, SVP and general manager of enterprise division, Hughes:
A surge in GenAI, an escalating need for technology support and a lack of relevant talent have created a perfect storm for self-help IT.
Self-help IT solutions will aid in streamlining business functions while creating a competitive advantage for organizations. As cyber criminals leverage AI to increase the effectiveness of cyberattacks, IoT can help identify indicators of compromise and abnormal behavior before it's too late.
As AI-enabled cyber threats become mainstream, cybersecurity will become the NO. 1 priority across industries. Cybersecurity will rapidly transition to "machines fighting machines," as AI will go beyond simply helping humans to also helping itself.
Darryl Jones, vice president CIAM, Ping Identity:
Identity fraud is not a novel concept. From stolen credit cards to spam calls, consumers have been dealing with identity theft and its ramifications for years — and it's an increasing risk as advancing technology like artificial intelligence becomes more prevalent in everyday lives.
2025 will mark the shift of consumers demanding more transparency from businesses around their security practices and use of AI. In fact, 89% of consumers already have concerns about AI when it comes to their identity security, and 97% have concerns about their personal data being online.
Consumers will begin holding companies accountable, insisting that the businesses they interact with do better when it comes to protecting their personal data amid the AI boom. Organizations deemed untrustworthy will become extinct by default and need to adjust their approach to digital identity in order to keep up with rising concerns — or else risk losing loyalty.
Peter Curran, GM of commerce, Coveo:
E-commerce vendors will increasingly prioritize transparency in their use of AI, especially when it comes to product recommendations. By openly explaining why certain items are being suggested — whether it's based on a customer's browsing history, past purchases, or common customer behavior — vendors can foster trust and create a more engaging shopping experience.
For instance, if a customer is browsing for a hoodie, and AI suggests a pair of pants or a beanie, explaining that these items are frequently purchased together or complement the hoodie's style can make the recommendation feel more thoughtful and relevant to the shopper's preferences. Customers who see the logic behind recommendations are more likely to engage with the suggestions, knowing they are tailored to their preferences. In turn, this can lead to higher conversion rates.
By embracing transparency, e-commerce brands can build stronger relationships, fostering a cycle of trust, satisfaction, and long-term loyalty.
About Judy Mottl
Related Media
Subscribe
Get the latest news and resources from Retail Customer Experience.
