AI in Retail knows what you want before you do

Introduction

What if you had to trade a bag of wheat for a pair of shoes every time you needed something new? That’s how retail started—simple bartering, where goods were exchanged based on need. Then came money, making things easier and giving rise to the first real markets in ancient Rome and Greece. 

What if we still live like that and you had to buy a new laptop—what would you have to offer in return? Maybe your high-end smartphone, a couple of premium gaming consoles, or a stack of designer sneakers. Okay, we can’t even imagine this. Luckily, we moved past bartering long ago.

Fast forward to the 1800s, and department stores changed everything, putting a variety of products under one roof. The 1900s brought shopping malls—not just places to buy things, but destinations for socializing and entertainment. Then the internet flipped the script, making it possible to shop from anywhere, anytime.

Now, retail is everywhere—on our phones and laptops, in social media feeds, and with AI that knows what we want before we do. This means that each stage brought its own revolution, and now, we stand at the threshold of another.  And shopping is definitely not just about buying things anymore; but experiences, personalization, and blending online and offline worlds. AI is at the center of it all, changing how we find, choose, and buy products. 

The goal has always been to make shopping as seamless as possible. The goal is same now. 

AI is changing retail & the numbers show it

AI isn’t just a cool add-on for retailers; it’s becoming the backbone of the industry. To understand the magnitude of AI’s impact, we must delve into the data.

• Online shopping is growing fast, with e-commerce expected to reach $8 trillion by 2027, according to Statista. AI is helping businesses offer better shopping experiences and run things more smoothly. 
• There are 2.77 billion online shoppers globally as of 2025. That means 33% of the world’s population is shopping online. This marks a 2.2% increase from the previous year. 
• There are over 28 million eCommerce stores globally.
  • 52% of online shoppers look for products internationally.
  • 34% of shoppers shop online at least once a week.
  • 99% of customers look for reviews when they shop online.
• The potential of AI applications in retail is truly staggering. McKinsey predicts that AI could inject an impressive $400 billion to $800 billion into the retail industry annually by 2030
• Automating tasks with AI could save retailers up to $1.3 trillion, cutting costs and making operations more efficient.
• Shoppers are on board. 71% of consumers want generative AI integrated into their shopping experiences and nearly 70% of consumers notice ads on retailer websites and apps compared to 63% on social media.

These numbers are not mere projections; they are a testament to the transformative power of AI disrupting the retail landscape.

Meet the modern shopper

To understand AI’s impact, we need to understand the modern shopper. This persona is diverse, but some common threads emerge:

• Age: Spanning generations, from tech-savvy Gen Z to digitally adapting Baby Boomers.
• Gender: Equally represented, with varying shopping habits and preferences.
• Characteristics:
  • Time-Conscious: Seeking efficiency and convenience.
  • Experience-Driven: Valuing personalized and engaging interactions.
  • Digitally Fluent: Comfortable with online shopping and mobile apps.
  • Value-Oriented: Seeking the best deals and quality products.
  • Socially Aware: Considering ethical and sustainable practices.

Statistics show that online shopping has drastically increased in the past few years, and mobile shopping is also on the rise. This indicates that the modern shopper is ready to adopt new technologies, especially if they are convenient. According to studies, a large percentage of consumers are willing to share personal data for personalized experiences. Therefore, AI adoption in retail is likely to be embraced by these consumers, especially when it results in a more efficient and personalized shopping experience.

Is this shopper ready for AI?

All signs point to yes. Online shopping has surged in recent years, and mobile purchases are rising even faster. A large percentage of consumers are willing to share personal data in exchange for more relevant and personalized shopping experiences.

For retailers, AI is no longer an optional extra—it’s becoming the backbone of how shopping works and brands that will adopt smart technology will be the ones that stay ahead.

In short, today’s shoppers are ready for AI—not because it’s trendy, but because it makes their lives easier. Just like retail. So… retail and AI – the perfect combo! 

AI trends in Retail

AI is making shopping easier, faster, and more personal. Here’s how.

AI in customer interactions

Smarter shopping assistants

• Chatbots & Virtual Assistants: AI chatbots use natural language processing (NLP) to understand customer questions and provide instant answers. They learn from past conversations to offer better product recommendations and even help complete purchases.
• Voice Shopping: AI-powered voice assistants (like Alexa or Google Assistant) let customers search for products, compare prices, and place orders using simple voice commands.

Personalized recommendations

• AI analyzes purchase history, browsing behavior, and preferences to suggest products tailored to each shopper.
• It can adjust recommendations in real time, based on a customer’s current shopping session or recent searches.

AI in physical stores

Smart shelves & inventory tracking

• Cameras and weight sensors track how many products are on shelves. If stock is low, the system automatically alerts staff or even reorders products.
• AI predicts demand trends, ensuring stores are stocked with the right items at the right time.

Better store security

• AI-powered cameras recognize unusual behavior, helping to prevent theft.
• Facial recognition (where legally allowed) can identify repeat customers and offer personalized service—or flag known shoplifters.

Optimized store sayouts

• AI analyzes foot traffic patterns to determine the best product placements.
• It helps stores design layouts that guide shoppers efficiently while maximizing sales opportunities.

AI for business insights & fraud prevention

Predicting what customers want

• AI analyzes past sales data, social media trends, and even weather patterns to forecast demand.
• This helps retailers prepare for seasonal trends and avoid overstocking or running out of popular products.

Fraud Detection

• AI monitors payment transactions in real time, spotting unusual spending patterns.
• If something looks suspicious—like a sudden high-value purchase from a new location—the system can flag it for review or block the transaction.

AI & augmented reality or the new way to shop

Virtual try-ons

• Augmented reality (AR) lets shoppers see how clothes, makeup, or glasses will look on them before buying.
• AI adjusts the fit and lighting in real time, making it feel more realistic.

Virtual showrooms & 3D shopping

• Virtual reality (VR) allows customers to browse and explore products in a digital store, almost like being there in person.
• Some brands use AI-generated avatars that help customers pick sizes or styles based on their body type.

AI-powered in-store assistance

• AR apps on smartphones or smart glasses can overlay product details, reviews, and prices when shoppers point their device at an item.
• Personalized navigation guides customers to exactly what they need in large stores.

Real-world examples of AI in Retail

AI isn’t just a concept—it’s already transforming how some of the biggest retailers operate. Here’s how major brands are using AI to improve shopping experiences, streamline operations, and boost sales.

Amazon

• AI-powered recommendations: Amazon’s machine learning algorithms analyze browsing history, past purchases, and even what other customers with similar interests have bought. This helps them suggest highly relevant products, increasing both customer satisfaction and sales.
• Amazon Go Stores: These cashier-less convenience stores use computer vision, shelf sensors, and AI to track what customers pick up. Shoppers can simply walk in, grab what they need, and leave—their Amazon account is automatically charged, eliminating checkout lines entirely.

Sephora

• AI Makeup try-on: Sephora’s “Virtual Artist” uses augmented reality (AR) to let customers see how different makeup products (like lipstick and eyeshadow) would look on their face—before buying.
• Personalized beauty recommendations: AI analyzes skin tone, past purchases, and beauty preferences to recommend products tailored to each shopper.

Walmart

• AI-driven inventory management: Walmart uses AI-powered cameras and sensors in its stores to track stock levels in real time. When an item is running low, the system alerts employees to restock.
• Faster checkout: AI-powered self-checkout kiosks analyze scan patterns to detect errors (like missed barcodes) and prevent fraud, speeding up the checkout process.
• Customer insights: Walmart’s AI analyzes shopping trends to predict what products will be in high demand and adjust stock levels accordingly.

Nike

• Nike fit app: Using AR and AI, the app scans a customer’s feet and recommends the perfect shoe size, reducing returns and improving comfort.
• AI-powered design: Nike uses AI to analyze fashion trends, customer feedback, and performance data to create new shoe designs that match what customers want.

Zara

• Predicting fashion trends: Zara uses AI to analyze social media, fashion blogs, and sales data to spot trends early. This allows them to design and produce new styles much faster than traditional fashion brands.
• Optimized supply chain: AI helps Zara manage its inventory efficiently, reducing waste and ensuring stores always have the latest styles in stock.

More brands using AI in Retail

H&M: Uses AI to predict which styles will be popular each season and optimize stock levels in different stores.
IKEA: Offers an AR-powered app that lets customers see how furniture will look in their homes before purchasing.
Starbucks: Uses AI to analyze customer preferences and location data to personalize drink recommendations and predict peak hours for staffing.
McDonald’s: Uses AI-powered digital menu boards that adjust based on weather, time of day, and customer preferences.
Adidas: Uses AI to generate sneaker designs based on customer preferences and social media trends.

There are, and will be many more on this list…. Of that we’re sure! 🙂 

AI Knows what you want before you do

Okay. Creepy or cool? 

Think about it: your favorite brands already know what you like, what you’ve bought before, and what you’re probably eyeing next. They’re using AI to cut through the noise, so you don’t have to waste time scrolling through endless options. They can predict your next purchase, let you test products without stepping into a store, find your perfect size with just a scan, suggest outfits based on your style, restock your essentials before you even realize you’re out, and even adjust prices in real-time based on demand. 

Let’s ask the same question now: What if your shopping cart knew what you needed before you even did? Less scrolling, less overthinking. Kinda creepy? Maybe. Super cool? Definitely.

AI in Retail learns what you like, figures out what you need, and makes sure you find it without the usual hassle. Of course, this level of personalization sparks a debate: where’s the line between helpful and a little too much? But in a world where convenience rules, it’s clear that AI isn’t just following trends—it’s setting them.

Conclusion

Of all the traditional industries out there, retail might just be the one that adopts AI with the least hesitation. No skepticism, no “should we, shouldn’t we?”, “is it worth it”…  

Why? Because retailers live and breathe one thing: making shopping seamless. If AI makes it faster, easier, and more personal, then why overthink it?

Unlike other industries where AI might raise eyebrows or feel like an experiment, in retail, it’s just the next logical step. Customers want convenience. Retailers want efficiency. AI delivers both.

So, what’s next? Will we see fully AI-run stores? Personalized shopping experiences so intuitive they feel like magic? Will there come a day when AI predicts what we need before we even realize we need it? (well, that one’s already happening.)

The conclusion? AI isn’t just changing retail—it is retail now. And if history has taught us anything, it’s that the industry that knows how to adapt always comes out on top.

Happy shopping—AI’s already got your cart ready! 🙂 

Interested to learn more about AI? Read our previous blogs!