The retail landscape is changing rapidly, and at the center of this transformation is artificial intelligence (AI). While shoppers traditionally looked for convenience and variety, many now find themselves frustrated by long decision-making processes, late deliveries, and incorrect orders. To simplify their experiences, consumers are increasingly turning to AI tools, which can handle everything from comparing prices to completing purchases.
Recent research from Cognizant suggests that AI-savvy consumers could be responsible for up to 55% of all purchases by 2030, amounting to a massive £690 billion in the UK alone. A significant factor driving this change is “agentic AI”—intelligent systems that act on behalf of the customer. Unlike simple voice assistants, these AI tools can search for products, compare features, make recommendations, and even complete transactions. In essence, AI is quickly becoming the consumer itself. Retailers who fail to adjust to this new reality risk losing touch with their customers.
The Rise of the AI-Powered Shopper
Platforms like Amazon’s “Buy for Me” and Google’s “Shop with AI” are early examples of this shift. These tools let users delegate parts of their shopping journey to AI, promising faster and more efficient decision-making. As more consumers embrace this AI-driven shopping method, retailers will have to rethink their marketing strategies.
If the initial point of contact is no longer a human but an AI agent, traditional marketing techniques such as branding, website design, or visual merchandising will lose their effectiveness. Instead, retailers will need to focus on how well their product information can be processed and understood by AI. This means ensuring that all product data—ranging from specifications to pricing—is accurate, well-structured, and optimized for AI discovery. Consumers will no longer browse products themselves; instead, autonomous systems will filter and select items on their behalf.
Younger Consumers Lead the Charge
This trend is particularly prominent among younger consumers, especially those under 35. These tech-savvy individuals are more likely to use AI throughout their shopping process, especially for low-cost, everyday items like groceries and toiletries. For them, convenience is key. Many are happy to let AI handle these simple tasks, including the entire purchasing process for everyday items.
Retailers selling fast-moving products are in an ideal position to capitalize on this trend. By offering smart reordering options, personalized subscriptions, and seamless checkout experiences, these brands can not only drive more sales but also build customer loyalty by integrating with the fast-paced, technology-driven lives of their consumers.
High-Value Purchases Require a Human Touch
However, when it comes to more significant purchases—such as appliances, electronics, or luxury goods—consumers tend to be more cautious. These buyers are less likely to trust AI for decision-making and often prefer human interaction for reassurance and guidance. This trend is especially noticeable among older shoppers, who tend to take control of these purchases themselves.
For these higher-stakes transactions, retailers need to strike a balance. While AI can support these buyers by providing product details, suggesting alternatives, or scheduling appointments with human experts, it shouldn’t replace personal interaction entirely. Here, the goal is not to fully automate the process but to enhance it with AI’s capabilities.
The Post-Purchase Experience: An Overlooked Opportunity for AI
One area where AI can make a significant impact is in the post-purchase experience. While many consumers are still hesitant to use AI for managing returns, tracking deliveries, or accessing customer support, this is precisely where automation can streamline the process and reduce frustration. Retailers should focus on demonstrating AI’s value in these areas by offering conversational tools that feel intuitive and personal rather than transactional.
Even in the realm of luxury goods, where customers expect a high degree of bespoke service, AI can enhance post-purchase interactions. For example, it can handle scheduling services, send updates, or manage care requests, all without detracting from the personal touch that customers value.
The Rise of Agentic AI in Retail
All of these developments point to the rise of the “agentic internet,” a world where AI agents are the primary interface between consumers and brands. As these agents take over tasks like searching for, comparing, and purchasing products, they will fundamentally change how brand visibility, customer loyalty, and influence operate in retail.
Retailers have less than five years to adapt to this shift. To remain competitive, brands must invest in clean, structured product data, implement automation where it adds value, and maintain a human touch where trust is essential. It’s critical that front-end systems align with back-end processes, ensuring that the AI promises consumers receive are actually delivered.
Ultimately, retailers must recognize that the “customer” will no longer always be a human browsing a screen. Increasingly, it will be an algorithm making real-time decisions on behalf of consumers. The brands that succeed in this new era will be those that serve both the human and the AI-powered agent effectively.
