Etsy Head of Global Merchandising Mary Andrews discusses how the company balances human intuition with AI-driven discovery to create a personalized shopping experience. Etsy uses AI to scale insights from cultural trends and buyer behavior, forming "algatorial collections" that maintain the original intent of merchandisers while reaching a broader audience. The restructuring of Etsy's merchandising team supports this model, integrating AI to enhance search accuracy and expand discovery channels through platforms like ChatGPT and Microsoft Copilot.

Dollar General is partnering with QSIC to roll out an AI-enabled audio system to 6,000 stores in 48 states, doubling Dollar General's in-store audio presence to 12,000 locations by the second quarter of this year. The system uses POS data, curated music and AI-generated ads to deliver targeted messaging and is expected to deliver "more relevant, localized and measurable audio experiences to customers while providing brand partners with accountable, data-driven advertising," says Austin Leonard, vice president and general manager of DG Media Network.

Britain's largest food retailer, Tesco, has partnered with Adobe to enhance its AI-fueled personalized marketing efforts. By integrating AI with data from its Clubcard loyalty scheme, Adobe engineers will work closely with Tesco's personalization and AI teams to drive sales and improve customer engagement. This collaboration will enable Tesco to accelerate its digital strategy, enhance the relevance of its marketing efforts, better anticipate customer needs and tailor content and offers across its channels.

David's Bridal has integrated AI into its operations by launching agentic storefronts on Shopify, enabling shoppers to discover and purchase products directly within conversational platforms such as Microsoft Copilot and ChatGPT. Over the past year, the company has overhauled its product data and internal processes to optimize for AI-driven discovery, focusing on structured data such as fabric, silhouette and sizing. The strategy allows David's Bridal to remain the merchant of record and retain customer data, while delivering conversion rates up to 23% higher than traditional ecommerce channels.

To address stock management challenges and improve sales opportunities and customer satisfaction, supermarket chain Iceland has introduced AI-based inventory tools designed to optimize product availability and reduce waste. By leveraging real-time data analysis, it can make precise replenishment decisions, ensuring products are available when and where needed. The AI platform constantly learns from historical patterns, offering more accurate forecasts and enhancing supply chain efficiency.

Billy Reid, J.Hilburn, Nicholas Joseph and other menswear brands are adapting to return-to-office mandates and post-COVID consumer demands by offering high-tech, personalized shopping experiences. For example, Billy Reid has expanded its business by acquiring Knot Standard's direct-to-consumer operations, and the integration includes Knot Standard's AI-driven made-to-measure software, allowing customers to customize garments with precise measurements and a variety of fabrics.

AI is transforming food safety for small- and midsize manufacturers by reducing documentation burdens, connecting fragmented records and providing greater operational visibility. Rather than replacing food safety culture or expertise, AI helps these businesses execute existing food safety programs more consistently, making it easier to comply with regulations and manage daily challenges. By organizing information that was previously scattered across logs, spreadsheets and emails, AI enables small plants to quickly identify operational patterns and food safety risks that might otherwise go unnoticed.

There is a discrepancy between consumer attitudes and behaviors towards AI, known as the "Say-Do" gap, where consumers express concerns about AI privacy and ethics but continue to use AI tools for convenience. While many express distrust in AI, they frequently use it for practical benefits, such as shopping and decision-making, states Maarten Albarda of Flock Associates. Brands should integrate AI to enhance ecommerce and the customer experience rather than making it the focal point of marketing, ensuring their brand remains human-centric, Albarda notes.

Generative and agentic AI are revolutionizing retail marketing by enabling personalized customer experiences, according to Bain & Company's executives. Beth Myers highlights the ability of generative AI to produce diverse content and structure unstructured data, while Aaron Cheris emphasizes the importance of guidance and metrics for successful AI implementation. Yael Mohan outlines how AI can enhance analysis and creative processes, predicting a shift toward data-driven marketing strategies.