A Big Shift at This Year’s Big Show: 3 AI Trends to Watch

CapTech retail leadership noted a seismic shift in AI attitudes at this year’s “Big Show.” While GenAI continues to capture the industry’s imagination, this year, retailers are viewing the new technology through a new lens. First: AI isn’t coming. It’s here. And second: AI is not a cure-all. It’s a tool.

We agree. From our observations at the 2025 NRF event in New York City last month, exhibitors were laser-focused on accelerating and refining retail capabilities, applying GenAI in very specific ways. Here’s what we heard, including three trends to note in particular:

1. Show Me the Money, AI

Opportunity: Retailers want to address specific use cases, such as elevating the customer experience, optimizing the store associate experience, boosting back-of-house productivity, and redefining supply chain best practices. They’re using AI to generate product descriptions, develop code, and design chatbot interactions. And assisted by AI, their forecasting is more accurate than ever.

Examples: Wal-Mart is embedding GenAI into the associate experience to understand pain points. Likewise, Coach is using AI to minimize associate turnover. Loreal is using GenAI to drive marketing campaigns and product advertisements. Sam’s Club found that AI-generated email subject lines outperformed human-written lines 95% of the time.

Observation: To move swiftly and efficiently to maximize business opportunities, companies will need trusted support with preparation, data integrity, and governance.

Read: Is Your Data AI Ready?

2. I Want to Find My People, AI

Opportunity: Social commerce and influencer marketing – particularly “micro” influencers – are skyrocketing, as buyers look to opinions of “normal” people, rather than celebrities. In addition, today’s consumer does not feel constrained by traditional experiences, but instead, is ready to make purchases wherever a “buy” button appears.

Examples: 70% of Rag & Bone’s online traffic is from the mobile app. TikTok sales neared $100M in 2024. BNPL (Buy Now Pay Later) purchases are surging. Foot Locker launched a new mobile app harnessing AI to power personalization and speed.

Observation: Buying “wherever” isn’t a trend. It’s a transformation. Successful retailers will find a trusted partner who understands how to use technology to translate customer data into actionable insights.

Read: 2025 Tech Trends: AI-Propelled Innovation

3. Give Me the Advantage, AI

Opportunity: Committed US retailers can now understand, attract, and retain consumers more efficiently and effectively than ever, boosting sales and customer satisfaction at the same time. AI is empowering personalization, data insights, loyalty, and post-purchase experiences.

Examples: Starbucks is focused on an initiative to elevate personalization to grow and protect loyalty. Retailers are using AI to make product recommendations and personalize mobile shopping experiences. Sams’s Club, in particular, is focused on the “right message, right member, right channel,” using AI to form a 360-degree customer view.

Observation: As we noted in our annual consumer survey results (November 2024), “The more [consumers] experience innovation and advanced capabilities, the more of it they expect.” Mastering digital personalization, as one speaker said, requires “chasing micro-moments of joy and relevance.” Innovative companies with robust loyalty experiences and personalization will earn competitive advantages and coveted brand loyalty.

Read: 2024 Consumer Innovation Survey Insights: Consumers are Leading the Charge

2025 stands to be a transformative year for us retailers willing to explore and test the many ways a comprehensive ai strategy can improve nearly every facet of their business, from leveraging data insights to enhancing marketing functions. Want to learn more? Reach out to our consumer and retail portfolio lead, Anthony Scott.