Will AI Transform a Customer-First Retail Culture?

Shopper push technology, but the future of retail will not be driven solely by technology or people.  It's a powerful combination.  Today, many retailers are adopting AI to offer a personalized experience that elevates consumer expectations to new heights.   Shoppers are in control and expect retailers to utilize the latest technology.  According to a study on Human-Centered Artificial Intelligence (HAI) at Stanford University, 78% of organizations reported using AI in 2024, representing a 55% increase from the previous year.   

It’s important to note that the companies’ pressure to integrate AI revolves around innovating on three key functionalities.  First, rising consumer expectations, such as AI shopping assistance in stores.  Second, e-commerce competition focuses on engaging, converting, and retaining online customers.  Also, 79% of shoppers say integration between in-store and online shopping is crucial.  Disconnected systems not only disrupt the journey; they risk breaking the relationship. Lastly, supply chain demands: Focusing on improving the accuracy of predictive stock and synchronization of inventory, including real-time forecasting. There is a sufficient reason to believe that 2026 will be called the year AI reshapes the retail industry through “agentic” experiences (AX), visual search, predictive inventory management, and much more.    

However, investing in and embracing the age of AI won't ensure a Customer-First Retail Culture without human interactions. Why? To enhance customer experience in retail, human interaction is key. Value is more than price-it’s personal; it's about building relationships. “Personal greeting, personal touch, personal best”. Associates must always be available to help customers overcome common situations; that's what your shopper pays for.  

So, focus on create People-first environments powered with AI automation that guarantee a customer-first Retail Culture.

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Key Moves in Modern Retail

1. Equip your People

Today’s shoppers are rewriting the rules of engagement. Shoppers are setting the terms: savings, convenience, speed, and  personalization.  And, of course, associates play a crucial role in every shopper interaction.  According to the 18th Annual Global Shopper Study by Zebra Technologies, 89% of associates agree that artificial intelligence will help them be more productive. They recognize that smarter automation reduces repetitive work and supports better decisions-making.

A remarkable case study that continues resonate is Nordstrom's strategy for engaging people. The company's purpose is to create a work environment that supports its values, instilling a sense of empowerment in employees to use their initiative to do the right thing. “Every Nordstrom employee — whether they work on the sales floor or in a support position— is focused on making people feel good. Our culture is centered on creating an environment where our people feel supported and empowered, to build lasting relationships with their customers.”  In fact, "Our employee handbook is a single card that says 'Use good judgment in all situations”. In short, empower your team to stay competitive in this retail evolution.

2. Automation as measure of service

The new retail era is driven by mobile technology; mobile is transforming the industry as a key move to enhance the customer experience. However, before investing in the top retail tech, it’s imperative to understand what your associates and customers request.  Remember, it’s about creating a powerful mix.   As the Zebra study reported, associates highlighted the top five (5) ways that mobile devices deliver.  In the following order.

1. Save the customer time (easy response/reduce checkout line)

2. Improve customer shopper experience (stock validation)

3. Find a product (availability)

4. Help in the return/exchange process

5. Save the customer money

Indeed, a new appetite for personal shopping devices is transforming the in-store journey. 76% of shoppers say they’d used a mobile device provided by the store to scan as they shop, locate and bag items, and check out all on the device. And 71% of shoppers report a better experience when store associates use the latest technology to assist them.  Indeed, the right tools turn service into connections.

Shoppers are setting the terms: savings, convenience, speed, and personalization. Empowered associates, AI, and automation are reshaping how shoppers engage with retail; It’s a powerful mix”.

3. Personalization: The Heart of Retail

Data is king, and AI is queen.  AI transforms personalization into a truly unique experience. This powerful combination presents a significant opportunity to enhance your customer experience. First-party data, which includes demographics, preferences, and interests collected during the shopping process (essential for maintaining a competitive edge). So, make sure to utilize this information in your marketing efforts and share it with your store associates. This data serves as valuable insights that can support their sales pitches on the sales floor.  Currently, 69% of IT budgets are dedicated to devices, software, and workflow automation.  However, to maximize the return on investment, it's crucial to involve your marketing team in these initiatives. Marketers have a deep understanding of shopper needs, and customers are likely to reward retailers who effectively meet those needs. This is the foundation for delivering a consistent experience.

 Sources by Zebra, Insider One ,and McKinsey & Company.

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