Retail is undergoing a transformation, one that’s not driven by seasonal discounts or flashy displays, but by AI agents working quietly behind the scenes.
In Episode 19 of NEX by Nurix, Chirag Patel breaks down how generative AI, LLMs, and AI agents are redefining how customers shop and how retailers operate. With the retail market expected to reach $45 trillion by 2029, the opportunity to lead in AI is now.
The real numbers behind AI in retail
Leading brands are using it to personalize experiences, speed up operations, and unlock massive value. The impact is already visible:
- 40% of Amazon sales come directly from its recommendation engine.
- McKinsey estimates AI could drive $240B–$390B in annual value in retail alone.
- AI copilots are reducing order times by 50–70% for customers.
1. Smarter Personalization with Real-Time AI
Modern consumers expect more than static filters or batch-segmented emails. They want intent-aware personalization in real time.
AI agents analyze:
- Past browsing & buying behavior
- Real-time signals from mobile/web
- Social trends across Pinterest, Instagram, X
- Live inventory, pricing, and promotions
Whether you’re browsing formalwear for a wedding or protein shakes for your new diet, AI agents can predict needs before you even search. That’s the kind of personalization that leads to:
- Higher basket sizes
- Increased conversion
- Deeper brand loyalty
In fact retailers using AI-generated lifestyle images in ads saw a 40% boost in CTRs
2. Smart Agents for 24/7 Help
Support expectations have shifted. Customers expect to message brands anytime, anywhere and hope to get answers in minutes.
AI agents are now powering:
- 24/7 support across WhatsApp, chat, email, SMS
- Real-time triaging + resolution
- Policy-compliant, brand-safe responses
- Seamless handoff to human agents for complex cases
Retailers like Walmart and Instacart are already embracing this model.
And the results?
- Shorter resolution times
- Lower support costs
- Higher CSAT scores
AI agents learn, adapt, and scale support as traffic spikes, all without increasing headcount.
3. Smarter Inventory, Forecasting & Operations
Behind the customer experience lies an even bigger challenge: keeping shelves stocked and logistics humming.
AI is enabling:
- Real-time inventory tracking
- Cutting manual workload by up to 50%
- Auto-reordering + stock reallocation
- Unified AI dashboards for operations
Retailers using these tools are already seeing real results. They are reducing stockouts and overorders, improving inventory turnover, and gaining full visibility across vendors and logistics.
4. Gen AI Across the Customer Journey
Most retailers today only touch 2–3 steps of the shopper journey. AI agents are changing that by engaging across all seven stages:
"This isn't just AI-enabled shopping. It's AI-orchestrated retail."
4 Steps to Scale AI in Retail
If you’re looking to move from AI Based solution these are the 4 steps we believe would be ideal for you
- Identify domain-level transformation priorities: For example customer experience, inventory optimization, or marketing performance. This helps ensure your AI efforts align with high-impact areas of your business and deliver measurable ROI.
- Pick out the model best for your use case: If speed and cost are key, lets say for handling FAQs or L1 queries. You can use lightweight models like Gemini 2.5 Flash or OpenAI 4.1 Nano. For complex L2 and L3 queries that require deeper reasoning, multi-turn dialogue, or decision-making logic, heavier models like OpenAI 4 or Claude 3 Opus offer better performance and accuracy.
- Understand the integrations required. It is important to integrate your current AI solution into your existing architecture. Fortunately, with APIs, AI agents can seamlessly interact with your systems, reading and writing data across tools like CRMs, inventory platforms, order management software, and more.
- Focus on retraining on existing architecture. Set up a dedicated team to run quality checks and ensure the system is working as expected, especially when handling inputs like product reviews, social media trends, and recent news
The brands that lead in AI will win in personalization, operational agility, and customer loyalty. As consumer demands rise, AI agents that are powered by intent, context, and automation, are becoming non-negotiable.
Ready to Bring AI Into Every Retail Touchpoint?
From frontline shopping experiences to back-office decisions, Nurix AI is helping retailers turn data into results—with AI agents that are:
- Real-time and multilingual support
- Over 400 integrations across multiple platforms
- Over 100 Agentic AI templates
