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AI in Retail: Impact and Opportunity

Retailers that overcome barriers to scaling artificial intelligence can enhance the customer experience, improve operational efficiency and unlock new streams of revenue.

CDW Expert CDW Expert

IN THIS ARTICLE

Many retailers are already using artificial intelligence tools to find new efficiencies, deliver better customer experiences and identify opportunities for revenue growth. Industry data shows that retailers are continuing to grow their AI investments. Emerging solutions are helping to deliver personalized promotions and product recommendations to shoppers, while also providing retailers with insights that help them forecast demand and open up new ways to sell targeted advertising to brands through owned channels.

However, retailers cite a number of hurdles to effective AI adoption. In addition to being overwhelmed by the sheer number of AI solutions on the market, many retailers lack the internal expertise, data governance practices and IT infrastructure to make cost-effective investments that will yield positive results. Help from a trusted partner such as CDW can enable retailers to identify opportunities for quick wins, scale AI pilots into production and lay a foundation for sustained success.

CDW can help you leverage AI to improve the customer experience.

Many retailers are already using artificial intelligence tools to find new efficiencies, deliver better customer experiences and identify opportunities for revenue growth. Industry data shows that retailers are continuing to grow their AI investments. Emerging solutions are helping to deliver personalized promotions and product recommendations to shoppers, while also providing retailers with insights that help them forecast demand and open up new ways to sell targeted advertising to brands through owned channels.

However, retailers cite a number of hurdles to effective AI adoption. In addition to being overwhelmed by the sheer number of AI solutions on the market, many retailers lack the internal expertise, data governance practices and IT infrastructure to make cost-effective investments that will yield positive results. Help from a trusted partner such as CDW can enable retailers to identify opportunities for quick wins, scale AI pilots into production and lay a foundation for sustained success.

CDW can help you leverage AI to improve the customer experience.

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The State of AI in Retail

In retail, AI has quickly gone from experimental to essential.

“The retail and consumer packaged goods industries have reached a critical inflection point in their artificial intelligence journey,” writes NVIDIA in a 2026 report. “AI is being deployed throughout every line of business, from the back office to the supply chain, in stores and for digital commerce. Most importantly, those AI solutions are having a tangible, measurable impact on the bottom line, helping to streamline operations and boost employee productivity.”

According to the NVIDIA report, 90% of retailers say their AI investments will continue to grow in the year ahead. And nearly half say their organizations are either already using or assessing AI agents to improve operations, customer experiences or enterprise decision-making.

Three macro priorities have emerged for AI implementations in retail. First, companies are using the technology to deliver highly personalized customer experiences. Second, they are using the technology to improve operational efficiency in areas such as inventory, merchandising and loss prevention. And third, retailers are seeking to create new revenue streams through innovations such as retail media networks and AI-enabled commerce models.

Additionally, AI is changing how consumers shop. Many customers, of course, continue to look for individual products in stores or online, but others increasingly expect curated recommendations based on their previous search and buying history. Some are even using AI platforms to directly discover new products. For example, a consumer might use a large language model to help plan an event or family photos, then use that same AI tool to help them make purchasing decisions about clothing and supplies to bring their plans to life. 

Still, many retailers are struggling with AI implementation. Although many AI tools are meant to generate insights from enterprise information, much of organizations’ data is often trapped in silos. Also, customer expectations are changing quickly, with many expressing distrust in brands that fail to disclose their use of AI in marketing materials. And AI features and models are changing so quickly that many retail leaders find it difficult to distinguish between meaningful improvements and hype-fueled solutions that fail to solve business problems.

The National Retail Federation reports that retailers are increasing their AI investments for areas such as supply chain operations and marketing, but that leaders also express a number of strategic concerns. More than half of retail leaders surveyed by NRF say that the cost of AI tools and services, AI model accuracy and reliability, and workforce expertise gaps pose significant challenges. And a significant portion express concern about the risk posed by evolving laws and regulations, as well as potential pushback from consumers and social media influencers.

Retailers must strike a careful balance, implementing AI aggressively enough to avoid being outpaced by their competitors, while also ensuring that their investments are guided by careful strategic planning and backed by rigorous governance practices. This means not only laying the IT foundation to support AI applications but also prioritizing business outcomes over technology trends.

89%

The percentage of retail leaders who say AI is helping to increase annual revenue

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CDW can help you keep pace with the rapid evolution of AI in retail.

The State of AI in Retail

In retail, AI has quickly gone from experimental to essential.

“The retail and consumer packaged goods industries have reached a critical inflection point in their artificial intelligence journey,” writes NVIDIA in a 2026 report. “AI is being deployed throughout every line of business, from the back office to the supply chain, in stores and for digital commerce. Most importantly, those AI solutions are having a tangible, measurable impact on the bottom line, helping to streamline operations and boost employee productivity.”

According to the NVIDIA report, 90% of retailers say their AI investments will continue to grow in the year ahead. And nearly half say their organizations are either already using or assessing AI agents to improve operations, customer experiences or enterprise decision-making.

Three macro priorities have emerged for AI implementations in retail. First, companies are using the technology to deliver highly personalized customer experiences. Second, they are using the technology to improve operational efficiency in areas such as inventory, merchandising and loss prevention. And third, retailers are seeking to create new revenue streams through innovations such as retail media networks and AI-enabled commerce models.

Additionally, AI is changing how consumers shop. Many customers, of course, continue to look for individual products in stores or online, but others increasingly expect curated recommendations based on their previous search and buying history. Some are even using AI platforms to directly discover new products. For example, a consumer might use a large language model to help plan an event or family photos, then use that same AI tool to help them make purchasing decisions about clothing and supplies to bring their plans to life. 

Still, many retailers are struggling with AI implementation. Although many AI tools are meant to generate insights from enterprise information, much of organizations’ data is often trapped in silos. Also, customer expectations are changing quickly, with many expressing distrust in brands that fail to disclose their use of AI in marketing materials. And AI features and models are changing so quickly that many retail leaders find it difficult to distinguish between meaningful improvements and hype-fueled solutions that fail to solve business problems.

The National Retail Federation reports that retailers are increasing their AI investments for areas such as supply chain operations and marketing, but that leaders also express a number of strategic concerns. More than half of retail leaders surveyed by NRF say that the cost of AI tools and services, AI model accuracy and reliability, and workforce expertise gaps pose significant challenges. And a significant portion express concern about the risk posed by evolving laws and regulations, as well as potential pushback from consumers and social media influencers.

Retailers must strike a careful balance, implementing AI aggressively enough to avoid being outpaced by their competitors, while also ensuring that their investments are guided by careful strategic planning and backed by rigorous governance practices. This means not only laying the IT foundation to support AI applications but also prioritizing business outcomes over technology trends.

CDW can help you keep pace with the rapid evolution of AI in retail.

AI in Retail: By the Numbers

51%

The percentage of retail executives who say they are using AI for personalized promotions and offers based on customer data

Source: Adobe, “AI and Digital Trends: Retail,” September 2025

41%

The percentage of shoppers who use AI assistants to research products

Source: IBM, “Own the Agentic Commerce Experience,” January 2026

75%

The percentage of retailers using AI tools for IT coding and app development; 73% are using the technology for office productivity, and 66% are using it for cybersecurity and fraud detection

Source: National Retail Federation, “Retail AI Trends: A Survey Report,” December 2025

AI in Retail: By the Numbers

51%

The percentage of retail executives who say they are using AI for personalized promotions and offers based on customer data

Source: Adobe, “AI and Digital Trends: Retail,” September 2025

41%

The percentage of shoppers who use AI assistants to research products

Source: IBM, “Own the Agentic Commerce Experience,” January 2026

75%

The percentage of retailers using AI tools for IT coding and app development; 73% are using the technology for office productivity, and 66% are using it for cybersecurity and fraud detection

Source: National Retail Federation, “Retail AI Trends: A Survey Report,” December 2025

cdw

Key Retail AI Use Cases

Conversations about AI in business often get flattened into discussions about model power and token consumption. But in truth, AI in retail is not about implementing a single technological capability. Instead, retailers are finding success with a wide range of practical applications. When retail leaders are asked about real-world AI use cases, they consistently talk about tools that help them to enhance the customer experience, improve operational efficiency and create new revenue streams. For each of these pillars, success depends on retailers’ ability to connect and govern their data across physical store locations, digital channels and enterprise IT systems.

CUSTOMER EXPERIENCE: Retailers have long tried to find ways to target individual shoppers with tailored promotions and product recommendations. AI tools make this goal more achievable than ever. Through the use of loyalty program information, browsing history and buying patterns, these tools can suggest relevant products or upsells, as well as alter homepage and app experiences based on shoppers’ identities.

AI tools can also help consumers with product discovery. For example, instead of searching for “formal dresses,” a shopper might ask an AI assistant for clothing options under $200 for an outdoor fall wedding. A superior customer experience has the potential to dramatically increase customer retention and lifetime value, but many retailers struggle to deliver these experiences, despite significant investment in personalization and omnichannel capabilities. According to Adobe, only 15% of retail brands feel confident that their digital experiences delight customers, and shoppers themselves rate only 16% of brand experiences as excellent.

OPERATIONAL EFFICIENCY: In a high-overhead industry such as retail, any technology that promises to reduce expenses is certain to command attention. Stores are using AI features such as computer vision and video analytics to catch theft and unscanned items in real time, helping to reduce shrinkage rates. By giving employees AI-enabled tools, retailers are enabling store associates to find product information more quickly and make on-the-spot, personalized recommendations to customers.

At the store and regional manager level, leaders are using AI tools to forecast demand and identify trends, helping to prevent common problems such as stockouts and excess inventory. Retailer leaders should also consider the potential impact of AI tools on back-office productivity. Like organizations in many knowledge work sectors, retailers can leverage AI to streamline reporting and financial tasks, offer immediate answers to natural language queries and automate routine workflows in departments such as marketing and human resources.

REVENUE GENERATION: For a time, many large companies were content to spend millions of dollars on AI experiments, with no real promise of ROI. Increasingly, though, business leaders are demanding that AI investments pay for themselves in the form of both improved efficiency and new revenue. In retail, organizations are looking to emerging models such as agentic commerce and retail media networks to help them create new revenue streams.

In an agentic commerce model, AI agents can help customers discover new products and compare options. Retail media networks, meanwhile, allow retailers to monetize their owned channels by selling targeted advertising and precise campaign measurement to brands. Other potential revenue opportunities include dynamic pricing (where stores use AI to adjust prices based on real-time supply and demand) and subscription offerings that use AI-enabled replenishment.

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Building an AI-Ready Retail Workforce

Employees are essential to implementing an effective AI strategy, but many retailers report that they struggle to attract and retain talent with AI expertise.

Recruit for AI and Data Skills: Scaling AI requires skills in areas ranging from data engineering and model management to cybersecurity and infrastructure. Retailers must ensure they can access this expertise via either internal staff or external partners.

Build a Network of AI Champions: Retailers should identify employees who are eager to test new AI tools and share their knowledge with their peers. This “bottom-up” approach can sometimes accelerate AI adoption better than top-down mandates.

Offer Role-Specific Training: From the IT shop to the cash wrap, different retail employees will use AI tools in vastly different ways. Training should reflect this reality by addressing employees’ actual job responsibilities, rather than teaching generic AI literacy skills. 

Measure Adoption and Impact: Retailers should track how employees are actually using AI tools, and whether those tools are improving business outcomes. Without impact data, AI training can quickly become a “checkbox” activity that fails to create real value.

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cdw

Key Retail AI Use Cases

Conversations about AI in business often get flattened into discussions about model power and token consumption. But in truth, AI in retail is not about implementing a single technological capability. Instead, retailers are finding success with a wide range of practical applications. When retail leaders are asked about real-world AI use cases, they consistently talk about tools that help them to enhance the customer experience, improve operational efficiency and create new revenue streams. For each of these pillars, success depends on retailers’ ability to connect and govern their data across physical store locations, digital channels and enterprise IT systems.

CUSTOMER EXPERIENCE: Retailers have long tried to find ways to target individual shoppers with tailored promotions and product recommendations. AI tools make this goal more achievable than ever. Through the use of loyalty program information, browsing history and buying patterns, these tools can suggest relevant products or upsells, as well as alter homepage and app experiences based on shoppers’ identities.

AI tools can also help consumers with product discovery. For example, instead of searching for “formal dresses,” a shopper might ask an AI assistant for clothing options under $200 for an outdoor fall wedding. A superior customer experience has the potential to dramatically increase customer retention and lifetime value, but many retailers struggle to deliver these experiences, despite significant investment in personalization and omnichannel capabilities. According to Adobe, only 15% of retail brands feel confident that their digital experiences delight customers, and shoppers themselves rate only 16% of brand experiences as excellent.

OPERATIONAL EFFICIENCY: In a high-overhead industry such as retail, any technology that promises to reduce expenses is certain to command attention. Stores are using AI features such as computer vision and video analytics to catch theft and unscanned items in real time, helping to reduce shrinkage rates. By giving employees AI-enabled tools, retailers are enabling store associates to find product information more quickly and make on-the-spot, personalized recommendations to customers.

At the store and regional manager level, leaders are using AI tools to forecast demand and identify trends, helping to prevent common problems such as stockouts and excess inventory. Retailer leaders should also consider the potential impact of AI tools on back-office productivity. Like organizations in many knowledge work sectors, retailers can leverage AI to streamline reporting and financial tasks, offer immediate answers to natural language queries and automate routine workflows in departments such as marketing and human resources.

REVENUE GENERATION: For a time, many large companies were content to spend millions of dollars on AI experiments, with no real promise of ROI. Increasingly, though, business leaders are demanding that AI investments pay for themselves in the form of both improved efficiency and new revenue. In retail, organizations are looking to emerging models such as agentic commerce and retail media networks to help them create new revenue streams.

In an agentic commerce model, AI agents can help customers discover new products and compare options. Retail media networks, meanwhile, allow retailers to monetize their owned channels by selling targeted advertising and precise campaign measurement to brands. Other potential revenue opportunities include dynamic pricing (where stores use AI to adjust prices based on real-time supply and demand) and subscription offerings that use AI-enabled replenishment.

Click Below To Continue Reading

arrow

Building an AI-Ready Retail Workforce

Employees are essential to implementing an effective AI strategy, but many retailers report that they struggle to attract and retain talent with AI expertise.

Recruit for AI and Data Skills: Scaling AI requires skills in areas ranging from data engineering and model management to cybersecurity and infrastructure. Retailers must ensure they can access this expertise via either internal staff or external partners.

Build a Network of AI Champions: Retailers should identify employees who are eager to test new AI tools and share their knowledge with their peers. This “bottom-up” approach can sometimes accelerate AI adoption better than top-down mandates.

Offer Role-Specific Training: From the IT shop to the cash wrap, different retail employees will use AI tools in vastly different ways. Training should reflect this reality by addressing employees’ actual job responsibilities, rather than teaching generic AI literacy skills. 

Measure Adoption and Impact: Retailers should track how employees are actually using AI tools, and whether those tools are improving business outcomes. Without impact data, AI training can quickly become a “checkbox” activity that fails to create real value.

CDW can help you implement AI effectively and scale up successes.

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