The retail landscape is on the cusp of a revolution, driven by the emergence of artificial intelligence (A.I.). As of 2026, shopping journeys are no longer anchored in traditional search and browsing, but instead are mediated by intelligent systems that can interpret intent, synthesize options, and act on behalf of consumers. This marks a significant shift away from human-centric commerce and towards an A.I.-powered operating system.
The old "search-scroll-compare" workflow is giving way to curated, intent-driven journeys, which reduce browsing time, decision fatigue, and unlock conversion rates that traditional e-commerce cannot deliver. Retailers are being forced to rethink visibility, trust, and control as the boundaries between human shoppers and A.I. agents become increasingly blurred.
The 2025 holiday season serves as a clear inflection point, with shoppers using A.I. tools to generate gift ideas, compare prices across stores, style outfits, or build personalized wishlists. This has led to an explosion in A.I.-powered assistants reaching millions of users worldwide and the emergence of generative engine optimization (GEO), which is redefining competitive advantage.
In 2026, retailers can expect to see six key trends shape their industry:
1. GEO supplants SEO: As A.I. agents become more prominent, keyword-driven search will lose its central role. Instead, understanding a product in context – how it fits a user's needs and preferences – becomes the new benchmark for visibility.
2. Virtual try-on and A.I. twins become the standard: Consumers are already building digital avatars to preview outfits, assemble lookbooks, and refine style preferences with automated precision. Retailers will need to meet shoppers within these environments.
3. Authenticity verification becomes non-negotiable: As A.I.-generated content floods retail media, trust becomes a prerequisite for discovery and recommendations. Watermarking, credentialing, and authenticity scoring will determine whether a product is surfaced by A.I. engines at all.
4. Returns enter their A.I. era: With returns expected to exceed $850 billion, retailers are being forced to adopt A.I.-driven sizing recommendations, personalized return policies, predictive risk scoring, and agent-guided resolution flows to protect loyalty without eroding margins.
5. Resale continues to surge: The resale business is booming as consumers increasingly prioritize sustainability and the resale market aligns with this desire. Authenticated buyback programs, trade-in incentives, and recommerce-led gifting are driving growth.
6. Physical retail will evolve into A.I.-powered showrooms: Stores will function as data-rich, immersive experiences where A.I. agents guide in-store paths, surface personalized recommendations, and stitch together online-to-offline journeys seamlessly.
In this new landscape, retailers must serve two customers – the human who ultimately makes the purchase and the A.I. system that helps them decide. Those who go all-in on agentic commerce will regain control of the shopping experience, while those who resist will increasingly compete on price alone. By embracing the fact that the most important buyer is no longer a person, but the A.I. that earns their trust, retailers can reclaim the driver's seat and remain competitive in this evolving retail landscape.
The old "search-scroll-compare" workflow is giving way to curated, intent-driven journeys, which reduce browsing time, decision fatigue, and unlock conversion rates that traditional e-commerce cannot deliver. Retailers are being forced to rethink visibility, trust, and control as the boundaries between human shoppers and A.I. agents become increasingly blurred.
The 2025 holiday season serves as a clear inflection point, with shoppers using A.I. tools to generate gift ideas, compare prices across stores, style outfits, or build personalized wishlists. This has led to an explosion in A.I.-powered assistants reaching millions of users worldwide and the emergence of generative engine optimization (GEO), which is redefining competitive advantage.
In 2026, retailers can expect to see six key trends shape their industry:
1. GEO supplants SEO: As A.I. agents become more prominent, keyword-driven search will lose its central role. Instead, understanding a product in context – how it fits a user's needs and preferences – becomes the new benchmark for visibility.
2. Virtual try-on and A.I. twins become the standard: Consumers are already building digital avatars to preview outfits, assemble lookbooks, and refine style preferences with automated precision. Retailers will need to meet shoppers within these environments.
3. Authenticity verification becomes non-negotiable: As A.I.-generated content floods retail media, trust becomes a prerequisite for discovery and recommendations. Watermarking, credentialing, and authenticity scoring will determine whether a product is surfaced by A.I. engines at all.
4. Returns enter their A.I. era: With returns expected to exceed $850 billion, retailers are being forced to adopt A.I.-driven sizing recommendations, personalized return policies, predictive risk scoring, and agent-guided resolution flows to protect loyalty without eroding margins.
5. Resale continues to surge: The resale business is booming as consumers increasingly prioritize sustainability and the resale market aligns with this desire. Authenticated buyback programs, trade-in incentives, and recommerce-led gifting are driving growth.
6. Physical retail will evolve into A.I.-powered showrooms: Stores will function as data-rich, immersive experiences where A.I. agents guide in-store paths, surface personalized recommendations, and stitch together online-to-offline journeys seamlessly.
In this new landscape, retailers must serve two customers – the human who ultimately makes the purchase and the A.I. system that helps them decide. Those who go all-in on agentic commerce will regain control of the shopping experience, while those who resist will increasingly compete on price alone. By embracing the fact that the most important buyer is no longer a person, but the A.I. that earns their trust, retailers can reclaim the driver's seat and remain competitive in this evolving retail landscape.