Industry
Retail
Omnichannel CX and Intelligent Innovation – The Future of Retail
Highlights
- Evolving technological trends are reshaping the retail landscape in the Americas. The shift from business intelligence (BI) to artificial intelligence (AI) not only speeds up retailers’ decision-making but also enables innovative use of information across the industry.
- Shoppers are also using AI-powered tools to seek the best price and personalized recommendations. This has made retailers incorporate sustainability in their product consideration.
- Retailers on their part are prioritizing building stronger connections with customers with immersive engagement, through all phases of the shopping experience.
On this page
On this pageinpage
Overview
The retail industry in the Americas is poised to gain from the multiple evolving technological trends.
Artificial Intelligence (AI) will top the list for retail players and consumers alike. We are witnessing a shift to artificial intelligence (AI) from business intelligence among retailers to gather actionable insights to better serve consumers, while consumers are increasingly turning to AI-based apps to navigate the retail space to meet their everyday needs. Needless to say, AI is set to be an integral part of any conversations around defining the future of retail. In addition, initiatives around sustainability will gain further ground driven by conscious consumerism and the need to address the global climate crisis.
Here are the five top trends set to gain further traction in 2025 and beyond.
Revolutionizing the use of data
The shift from business intelligence (BI) to artificial intelligence (AI) is revolutionizing the way retailers access and utilize data and actionable insights.
Over the past few years, retailers have laid the groundwork and experimented with AI. In 2025, these pilots and proofs of concept are expected to scale up and pay dividends, offering faster real-time actionable insights in minutes or days, compared with weeks or months earlier. AI, particularly conversational AI, is democratizing data analysis, enabling non-technical users to glean meaningful insights without the need for specialized skills. This shift not only speeds decision-making but also liberates data, allowing for more flexible and innovative use of information across the retail industry.
AI-powered consumers
AI adoption isn’t just popular with retailers.
Consumers have also joined the movement. As more consumer-facing AI tools begin to emerge, shoppers will become increasingly savvier in optimizing their purchases and stretching their dollars. For example, GrocerAI, an AI tool, allows consumers to run product searches spanning multiple retailers to find the best prices in real time. This shift is set to compel retailers to not only offer the best prices, and focus on availability and personalized recommendations, but also learn to appeal to this new AI-augmented audience. As consumers gain further control with AI, retailers must compete to capture their wallet share, ensuring relevance in a competitive market where data will be key to success.
Sustainability shifts
In 2025, the retail industry will turn the corner in sustainability.
The industry will view sustainability not only as a regulatory requirement but also a means to drive growth.
With consumers becoming more environmentally conscious, retailers will find new ways to capitalize on it. More brands are integrating sustainability into their product taxonomy to empower shoppers to make informed purchasing decisions with, for example, products that are pricier but have lower carbon footprint, last long, or are reusable. Others will tap into circular economy principles and new business models, such as buy-back programs, gear swaps, repairs, rentals, refills, extended warranties for sustainable products, and subscriptions. One home improvement retailer is now using packaging material that can also double up as insulation in homes. From sourcing sustainable products to minimizing waste and extending product life cycles, some retail sub-industries, like home furnishings and apparel, are poised to differentiate themselves in the marketplace and drive customer loyalty and growth in the new year.
Reimagining retail media networks
Retail media networks, or advertising platforms, are entering a new phase of maturity following the past four years of building a new business model.
In 2025, key shifts will be seen as tech stacks become more sophisticated and ad dollar metrics are standardized. The overall tech infrastructure for retailers, originally pieced together with new features getting bolted along the way, will witness a season of re-evaluation. Many brands will consolidate and build a more optimized and scalable tech stack that will help them grow faster and be more profitable. While there is a significant potential for revenues, retailers will face increased pressure to standardize metrics for return on investment from ad spends, while balancing the need for transparency with maintaining competitive edge. This net will be made ever more complex as retailers also balance the evolving dynamics with their partners who are simultaneously their advertisers and vendors.
Customer loyalty
With the shift from the product economy to the experience economy gathering space, loyalty is no longer tied solely to point systems and rewards for redemption.
In 2025, more and more retailers will prioritize building stronger connections with customers through personalized engagement, both online and in store, through all phases of the shopping experience—before, during, and after the purchase. Brands are competing to earn and retain customer loyalty, providing not only convenience, such as larger return windows and faster delivery, but also exclusive perks like access to coffee lounges or special counters for loyal customers in store. This enhanced experience emphasizes love and appreciation for customers, with the goal of making them feel valued beyond transactions.
