By Stephen DeAngelis
It’s no secret that the retail sector has been experiencing tumultuous times. The tumult is the result of numerous factors, including the rise of digital commerce, intense competition, changing consumer tastes & behavior, and trade wars. Surviving, let alone thriving, in this business environment has been a challenge. Chrissy Blasinsky, a Digital & Content Strategist at NACS, reminds us, “Retail was strictly brick-and-mortar 80 years ago. In the past decade the pace of change has gone from in-store and online only, to in-store, online, plus social commerce, quick commerce, and omni channel.”[1] The rapid pace of change in the retail sector has left many executives exhausted as they have struggled to keep up. However, as Jennie Bell, managing director of U.S. global clients at NielsenIQ, told participants at a NACS event, “We’re in the space where we’ve really seen retailers adopt the digital transformation. Retailers are investing in technology platforms; they’re investing in supply chain. … Social commerce and quick commerce are going to continue to transform the way consumers shop.”[2]
Adopting AI Solutions
Although it didn’t seem possible, digital transformation accelerated the pace of change over the past couple of years with the emergence of artificial intelligence (AI), generative AI, and agentic AI. As a result. Cynthia Countouris, the global director of product marketing, sales, and partner enablement at NVIDIA, reports, “Artificial intelligence is rapidly becoming the cornerstone of innovation in the retail and consumer packaged goods (CPG) industries. Forward-thinking companies are using AI to reimagine their entire business models, from in-store experiences to omnichannel digital platforms, including ecommerce, mobile and social channels. This technological wave is simultaneously transforming advertising and marketing, customer engagement and supply chain operations. By harnessing AI, retailers and CPG brands are not just adapting to change — they’re actively shaping the future of commerce.”[3]
The future of commerce is complex — and dealing with complexity is where AI excels. Countouris notes that generative AI has begun playing a significant role in the retail sector. “Generative AI has found a strong foothold in retail and CPG,” she writes, “with over 80% of companies either using or piloting projects. Companies are harnessing the technology, especially for content generation in marketing and advertising, as well as customer analysis and analytics.”
AI Everywhere
There is no “sweet spot” in the retail sector where executives should be looking to apply AI solutions. Borrowing from the title of an award-winning 2022 movie, the benefits of AI in the retail sector are “Everything Everywhere All at Once.” AI is needed everywhere because everything in the retail sector has evolved. Mark Baxa, President and CEO of The Council of Supply Chain Management Professionals (CSCMP), explains, “Retail supply chains are undergoing a profound transformation as consumer behavior, technology, and global market forces evolve. ... The stakes are higher than ever, as retailers strive to balance efficiency, speed, and sustainability.”[4]
Countouris observes, “AI use cases have proliferated across nearly every line of business in retail, with over 50% of retailers using AI in more than six different use cases throughout their operations.” Dilip Dand, co-founder and chief product officer at Lighthouse3, agrees that generative AI is proving valuable. He writes, “Over the last couple of years, AI — especially generative AI — has been transforming the way we do business. Companies are increasingly making use of AI and machine learning to improve efficiency, reduce costs and boost profitability. As the retail sector struggles with labor shortages and increasing costs, leaders are looking to technological innovations for help.”[5]
Dand believes one of the technological innovations that will be especially helpful in the retail sector is agentic AI. He explains, “AI agents [are] intelligent systems that not only can interact with humans using natural language, but can also incorporate vast amounts of data and knowledge in order to make autonomous decisions. AI agents can analyze the situation, decide the best course of action, take that action, summarize and explain the reasons behind it, and finally learn and adapt from the interaction. AI agents can be deployed in a wide range of use cases, from inventory management to workforce scheduling and training to customer service.”
Concluding Thoughts
I agree with all the experts cited above that the future of the retail sector is highly dependent on the wise application of artificial intelligence. As a result, Enterra Solutions® has developed a suite of solutions that are built upon Enterra’s Autonomous Decision Science™ (ADS®) and Generative AI technology platform. The Enterra Dynamic Enterprise Resiliency System™ (EDERS™) is a groundbreaking new product designed to enable enterprises to convert macroeconomic and geopolitical chaos into powerful competitive advantage. EDERS enables organizations to autonomously analyze data, predict outcomes, and execute optimized decisions with high accuracy across complex business operations. A defining feature of the system is its architecture which is comprised of a set of interconnected business applications that leverage a common analysis, optimization, and decision-making/learning platform. These business applications include:
• Enterra Consumer Insights Intelligence System™
• Enterra Revenue Growth Intelligence System™
• Enterra Demand and Supply Intelligence System™
• Enterra Global Insights and Decision Superiority System™ (Enterra Business WarGaming™)
To bolster the marketing side of the retail sector, Enterra® recently acquired 380ai and its 380ai Marketing Engine (AME™). This proprietary AI-powered marketing engine empowers our agencies’ expert marketing strategists with advanced analytics and algorithms to deliver unparalleled client outcomes. Like other Enterra AI solutions, 380ai’s AI-driven smart automation can Sense, Think, Act, and Learn® to optimize your marketing efforts.
The PYMNTS staff observes, “Personalization is key to unlocking AI’s retail potential.” They add, “For retailers grappling with the promise of generative AI, perhaps the most prominent challenge they face is a simple, albeit difficult, one: contending with the industry’s shortage of skilled developer talent.”[6] Enterra and 380ai may be the answer to the challenge for many clients.
Roland Dzogan, co-founder and chief executive officer of YDISTRI, asserts, “The retail industry stands at a pivotal moment. Artificial intelligence is no longer a futuristic concept but a present reality reshaping supply chains. Recent research highlights a stark truth: inaction on AI adoption isn’t just risky — it's potentially catastrophic for retailers aiming to remain competitive in today's fast-paced market.” It’s time to focus on the “AI” in retail.
Footnotes
[1] Chrissy Blasinsky, “A Closer Look: Reimagining Retail in a Digital Landscape,” NACS News Daily, 20 May 2025.
[2] Ibid.
[3] Cynthia Countouris, “AI Gets Real for Retailers: 9 Out of 10 Retailers Now Adopting or Piloting AI, Latest NVIDIA Survey Finds,” NVIDIA Blog, 10 January 2025.
[4] Mark Baxa, “The future of retail supply chains: Embracing omnichannel complexity,” Supply Chain Xchange, 19 May 2025.
[5] Dilip Dand, “Transforming the Retail Store With AI Agents,” SupplyChainBrain, 25 November 2024.
[6] Staff, “The AI Revolution in Retail: Opportunities and Risks,” PYMNTS, 8 December 2023.
[7] Roland Dzogan, “Embracing AI in Retail Supply Chains: A Call to Action,” SupplyChainBrain, 24 September 2024.
