The article was first published on The Economic Times-Retail.com on February 27 2026. Please click here to read the article.
Retailers worldwide are better poised to reimagine how we shop, how we connect with brands, how supply chains are managed and how value is created for consumers. At the core of this potent transformation is Artificial Intelligence (AI) - evidently surrounded by both excitement and doubt. A recent KPMG report titled ‘AI in retail: lessons from strategy to storefront’ showcases some real-world examples of AI in action along with some practical lessons, benchmarks and case studies from leading retailers worldwide.
Findings of the report show that 64 per cent retail CEOs say that AI is a top investment priority for their business. This investment wave is not driven by a single objective, but by a shared belief, which is perhaps hinged in the trust of 82 per cent retail executives who have said that embracing AI creates a competitive edge. The global and Indian retail ecosystem is no longer debating whether to adopt AI. In this scenario, the real question is: How will they scale it with simplicity, clarity and measurable impact?
The increased confidence in AI is also embedded in the fact that it can help solve the industry’s most pressing and diverse challenges. Retail leaders around the globe, from grocery to luxury, electronics to health & wellness surveyed in the report share considerable improvements in customer experiences, boost productivity and unlock new efficiencies. For some, the objectives also range from securing foundational efficiencies to undergoing transformative innovation. A few others are focused on boosting productivity and streamlining the supply chain. Those in the luxury space, are using AI to elevate brand storytelling and deliver hyper-personalised experiences. For retailers across the spectrum, it represents a powerful engine for creating new value.
While the broad consensus on AI creates a clear imperative to move from AI strategy to execution, another question arises: Can AI truly deliver on the promise of revolutionising retail, or will it remain a buzzword without substance? The answer certainly lies in how retailers harness AI to create meaningful change - starting with the consumer. At the outset, retailers must remember that AI will not create growth in isolation. It will first transform productivity, efficiency and human capability and when those three align, revenue growth becomes inevitable and sustainable. Consequently, the narrative around AI is matured - shifting from “AI hype” to “AI coexistence”, from pilots to outcomes and from over-engineering to clarity of purpose.
Even in the age of AI, consumer experience (CX) will continue to be the biggest differentiator whether it's food, music or our presence inside a store. The common thread in CX that reinforces one key point is investments must be intentional, outcome-led and deeply anchored in data quality. Accordingly, experience without intelligence is expensive and intelligence without execution is not relevant, the real CX equation lies in getting both right. Perceiving AI as a central pillar of future growth and competitiveness, agentic service providers agree that the sector will increasingly move towards single-window, agent-led experiences. Herein consumers will not jump across platforms, the interface will negotiate, curate and deliver relevant data in real time. As a result, the traditional, linear customer journey is likely to be obsolete, and replaced with a more dynamic, fluid experience that begins not with a search, but with conversational inspiration where AI anticipates true intent. From there, the customer becomes a co-creator, exploring and customising products in real-time. The purchase will evolve into an intelligent transaction, being delegated to AI agents, before transforming into dynamic ownership - a perpetual cycle of proactive service. This progressive retail journey does not run on its own. It is built upon three critical foundations: a modern technology and data architecture that provides the engine for intelligence; an empowered workforce that acts as the human co-pilot at every turn and the unwavering bedrock of trust that governs every interaction and ensures lasting loyalty.
At the recently held ET Great India Retail Summit Awards (GIRS), industry experts shared data-backed perspectives and practical frameworks on the importance of AI and CX. The deliberations and on ground realities at the summit, declared a clear mandate from retailers; to embed intelligence across every facet of their operations is not a trend, it’s a fundamental realignment of capital and strategy toward building a more resilient, efficient, and customer-centric enterprise.
