AI Agents: Transforming retail beyond optimisation

At the recent Nordic Retail Summit, Ludvig Strand delivered a thought-provoking session on the future of AI in business, challenging us to rethink how we use or should use emerging technologies. His concept of skeuomorphism—the tendency to apply new technologies within old frameworks—struck a powerful chord. Strand illustrated this with a story of his grandfather, who, despite acquiring a tractor, continued using it like a horse-drawn cart, failing to fully leverage its potential. This analogy reflects how many businesses are currently using AI: simply optimising existing processes instead of tapping into its transformative capacity.

The highlight of Strand’s presentation was the rise of AI agents. Unlike traditional AI systems, which support specific tasks, AI agents can autonomously act on behalf of businesses and consumers, executing complex operations such as supplier negotiations and personalised shopping experiences. Strand cited Walmart’s AI-powered negotiation bots, which autonomously handle supplier agreements, driving 65% success in test cases—a powerful example of how AI agents can streamline operations previously thought too complex for automation.

The retail revolution: AI Agents as personal shoppers

In the retail world, AI agents have the potential to revolutionise how customers interact with brands. Rather than manually browsing websites or interacting with basic chatbots, AI agents can act as personal shoppers, dynamically curating product recommendations based on real-time data. These agents consider factors like past purchases, browsing habits, and even external variables such as weather or special events to suggest highly personalised items.

Picture this: You're planning a beach vacation, and your AI agent automatically recommends a complete travel outfit, sunscreen, and luggage, all tailored to the climate and trends at your destination. The shopping experience is seamless, customised, and significantly more efficient.

Beyond personalisation: AI Agents as decision-makers

While personalisation is a key feature, AI agents in retail offer so much more. They are evolving into powerful decision-makers capable of anticipating needs and managing entire shopping journeys autonomously. Generative AI models allow these agents to continuously learn and adapt, refining their suggestions based on evolving customer preferences. This shift moves beyond customer support, transforming the retail experience into a data-driven, conversational journey that reduces decision fatigue and enhances engagement.

The future of retail AI: From optimisation to transformation

As businesses integrate AI into their operations, the retail industry stands on the brink of a massive shift. AI agents will ”soon” become indispensable, functioning as highly intelligent digital assistants that operate far beyond basic automation.

Strand’s message was clear: those who ”embrace” AI agents as proactive partners will lead the next wave of innovation. In this new era, data-driven personalisation, combined with intelligent decision-making, will define every customer interaction, ensuring that businesses can operate with unprecedented efficiency while delivering tailored, frictionless experiences for consumers.

Are you ready to evolve from optimisation to true transformation?

(Disclaimer: This is based on my notes from yesterday. I believe they are correct, but I might have missed a word or two! ... and "soon" has to be defined)

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