Online fashion retailer Asos is leveraging AI-powered stylists to attract customers and counteract a 12% sales decline over the past year. The "Styled for You" feature uses AI to recommend clothing combinations, drawing from a vast database of curated outfits that are based on a shopper's purchase history and preferences. Despite efforts to innovate and leadership feeling confident about the new strategy, Asos faces challenges from fast-fashion brands like Shein and Next.

In its third-quarter earnings report, Lowe's outlined its strategic focus on AI and digital engagement to fuel future growth. The company has embedded AI tools across various operations, including customer service and software development, leading to improved conversion rates and productivity. Lowe's virtual assistants Mylow and Mylow Companion are handling almost a million inquiries monthly, from product details to customer order updates.

Target's beta app on OpenAI's ChatGPT enables customers to shop directly within the chatbot platform, which includes linking their Target accounts, making multi-item purchases and accessing fresh food. This move positions Target as one of the first major retailers to offer such integrated shopping capabilities within ChatGPT. "At Target, everything starts with the customer, and that means meeting them wherever they are, including emerging spaces like ChatGPT, where millions of consumers visit," said Target EVP Prat Vemana.

Danielle Schmelkin, J. Crew's chief information officer, has led the development of a robust technology ecosystem. Shoppers benefit from personalized mobile app and website recommendations based on browsing and purchase history, while sales associates use AI-driven tools to tailor in-store interactions. Behind the scenes, an AI chatbot empowers employees to access actionable sales data, and predictive models optimize inventory in response to real-time demand signals.

Home Depot has introduced Blueprint Takeoffs, an AI-powered project planning tool that generates comprehensive material lists and cost estimates. The solution reduces the project time prep time required from weeks to just days, enabling professional renovators and builders to plan projects more efficiently and purchase materials directly from Home Depot.

AI is set to transform the retail and payments sectors, according to Affirm CEO Max Levchin, who believes that AI agents could take over tasks like identifying high-interest products, thereby enhancing transparency and consumer protection. The buy now, pay later sector, which saw significant growth in 2024, is poised to leverage these AI advancements. Retailers like Walmart are investing in AI agents to boost ecommerce, aiming for substantial online sales growth.

Amazon has rolled out enhancements to its Rufus AI shopping assistant to improve speed, utility and personalization for users. The latest upgrades introduce expanded capabilities to leverage conversational context and real-time recommendations. Shoppers can ask Rufus to reorder previously browsed or purchased items and receive alternative suggestions if items are unavailable. The feature also allows users to view, update or correct the information Rufus remembers about them.

AI shopping agents offer a strategic advantage for holiday shoppers by automating the search and purchase process, including handling tasks like finding gifts, comparing prices and tracking deliveries. With platforms like Tars and Lindy AI, consumers can build agents without coding, making them accessible for personal use and resulting in reduced stress and increased focus on enjoying the holiday season. McKinsey predicts significant growth in agentic commerce, with potential revenue reaching $1 trillion by 2030.

Agentic AI builds on generative AI by analyzing vast data sets in real-time and automating actions, such as adjusting prices or handling customer service tasks. While it offers great opportunities for enhancing retail operations, retailers that fail to adapt may fall behind. Some large retailers report that at least 30% of their traffic is coming from AI platforms, with shoppers running queries and heading to retailers after receiving recommendations from the queries, says Mark Simon, VP of strategy for Celigo.

Sundar Pichai is taking the NRF 2026: Retail's Big Show keynote stage with John Furner, president and CEO of Walmart U.S. and incoming president and CEO of Walmart Inc., to discuss how the AI platform shift is transforming retail — unlocking innovation, driving efficiency and redefining what's possible for businesses. Register now.

In NRF's "Retail Gets Real" podcast episode, featuring Debra Langley of CAPTIS Ventures and Greg Merrill of Futura Fragua, guests explore the rapid emergence of agentic AI shoppers reshaping retail. Traffic from generative AI to shopping sites has increased significantly over the past several months, signaling the rise of autonomous, constantly optimizing non-human consumers. Experts say retailers must evolve or become irrelevant, balancing data readiness, trust and operational security to thrive in this new landscape. Listen to the episode