Repositioning Retail for the AI Era
Artificial intelligence is rapidly reshaping retail, but not always in the flashy ways consumers might expect. While virtual try-ons and chatbot shopping assistants grab headlines, the most significant transformation is occurring behind the scenes: how products surface in search results, how inventory flows through supply chains, how engineers deploy code faster, and how retailers respond to customer behavior in real time. As legacy retailers navigate a fragmented and hyper-competitive landscape, AI is evolving from a tool into an operating philosophy.
By 2026, this shift has become essential. Consumers now expect seamless, individualized experiences across every digital touchpoint. According to Macy’s senior director of engineering Murali Murugan, the key is adopting an “AI-first” mindset. “From conversational shopping assistants to hyper-personalized recommendations,” Murugan explains, “AI can make digital retail experiences feel more intuitive, seamless, and individualized.”
At Macy’s, that philosophy is being woven into the fabric of daily operations. AI-driven personalization engines analyze browsing and purchase history to surface relevant products in real time. Machine learning models optimize inventory placement, reducing stockouts and markdowns. And engineering teams leverage AI to accelerate code deployment, enabling faster iteration and more responsive customer experiences.
As competition intensifies and consumer expectations rise, repositioning for the AI era is no longer optional. Retailers that embed AI into their core strategy—from supply chain to customer interface—will be best positioned to thrive in an increasingly intelligent marketplace.