NRF SmartBrief: AI in Retail Edition
Amazon eyes $10B investment in OpenAI with chip adoption
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December 17, 2025
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NRF SmartBrief: AI IN RETAIL EDITION
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DoorDash explores restaurant discovery with new Zesty app
DoorDash is testing a new AI-powered app called Zesty in New York and San Francisco to help users discover restaurants. The app includes an AI chatbot for tailored suggestions and a social feature for users to share restaurant reviews and experiences. This move is part of DoorDash's strategy to diversify its offerings beyond food delivery, with significant investments planned for future internal productivity tools and initiatives.
Full Story: Bloomberg (12/16)
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See the numbers: the ROI of AI pricing
Discover how AI pricing can increase profits by 5–10%, generate up to 10% revenue growth and quickly deliver ROI. Download the executive summary from our eBook for quick, actionable insights into the significant financial and competitive advantages of leveraging AI. Access the resource now →
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AI in Retail
 
Lowe's to build on AI, personalization tech in '26
 
Lowe's to build on AI, personalization tech in '26
(SOPA Images/Getty Images)
Lowe's plans to enhance its AI-powered visualization tools in 2026, allowing customers to upload images of their spaces and reimagine them in real-time with recommended products and styles. The retailer envisions a highly interactive, Pinterest-like experience that helps shoppers move seamlessly from inspiration to installation. This initiative is designed to make home improvement shopping more intuitive by allowing users to see how furniture, fixtures and decor will look in their own rooms, supported by AI-driven recommendations and personalization.
Full Story: Modern Retail (tiered subscription model) (12/16)
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Fanatics integrates AI to enhance merchandise operations
Fanatics has entered into a partnership with Rokt to integrate advanced ecommerce technology across its global platforms to provide offers and content to shoppers. Fanatics will join the Rokt Network, leveraging Rokt's AI-powered solutions to refine its merchandise operations and connect with a wider audience. The partnership is designed to support Fanatics' expansive international footprint and benefit from Rokt's established presence in key regions worldwide.
Full Story: Retail Insight Network (12/15)
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AI toy manufacturers balance innovation, safety
Chongker, Haivivi, Keyi Tech and other AI toy manufacturers are expanding the tech toy market with innovative products that offer personalized interactions and learning capabilities. An AI cat with a simulated heartbeat serves as a comfort pet, CocoMate plush toys discuss everyday events with kids and Loona the AI puppy roams around its owner's home, recognizing and responding to multiple family members. While these toys offer voice recognition and other features, manufacturers are implementing guardrails to address privacy concerns.
Full Story: CNBC (12/15)
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Trove uses AI to help brands optimize resale, returns
Trove's recommerce platform enables major brands, including Patagonia, Calvin Klein and Michael Kors, to launch and manage their own branded resale, trade-in and repair programs on their ecommerce sites. By integrating these capabilities, Trove helps brands control their secondary markets, streamline returns and inventory management and connect with new customers who are entering the market via resale.
Full Story: CO— (US Chamber of Commerce) (12/11)
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Enhance Retail and CPG Data with Governance
Navigating data challenges in retail and CPG demands strong governance to tackle insights inconsistency, security issues, and rising costs. A governance-first approach ensures seamless data integration and management. Read more in this whitepaper.
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Tech Watch
 
Amazon eyes $10B investment in OpenAI with chip adoption
OpenAI is reportedly in early talks with Amazon to raise no less than $10 billion, potentially valuing the AI company at over $500 billion. The discussions include OpenAI adopting Amazon's Trainium chip, which would enhance Amazon's presence in the AI sector, support its semiconductor division and help it compete with Nvidia, which currently dominates the AI chip market. The talks follow a recent restructuring at OpenAI, where Microsoft acquired a 27% stake.
Full Story: Bloomberg (12/16)
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Everbloom adopts AI to create cashmere-like clothing
Startup Everbloom is using its AI technology, Braid.AI, to transform waste materials like chicken feathers into cashmere-like fibers. This innovative process involves collecting keratin-rich waste from various sources, which is then processed to create biodegradable fibers. The approach aims to address the unsustainable practices in the cashmere market by offering an eco-friendly and economically viable alternative, challenging the notion that sustainable products must be more expensive.
Full Story: TechCrunch (tiered subscription model) (12/16)
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ICYMI
 
 
Walmart, Target overhaul AI tactics to meet consumer demand
CNBC (12/14)
 
 
Amazon expands Just Walk Out with AI, payment integration
Chain Store Age (12/12)
 
 
 
 
AI and the Consumer
 
AI-driven shopping reshapes consumer behavior in 2025
AI is transforming consumer behavior, with 2025 marking a significant shift toward AI-powered product discovery and decision-making, writes Ollie Shelton of Threepipe Reply. During Black Friday and Cyber Monday, AI assistants influenced over $14 billion in sales globally and mobile purchases dominated. Brands are adopting agentic AI to automate budget allocation and creative adjustments in real time, enhancing efficiency and reducing waste.
Full Story: The Drum (free registration) (12/16)
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Research
 
CEOs to increase AI spending despite mixed returns
 
Man pushing AI text in shopping cart up ascending arrow
(Malte Mueller/Getty Images)
Sixty-eight percent of CEOs of large companies plan to boost AI investments in 2026, even though fewer than half of AI projects have generated returns, according to a survey by Teneo. CEOs have seen the most success in marketing and customer service, while facing challenges in security and HR. Interestingly, 67% of CEOs believe AI will boost entry-level hiring and 58% believe it will up senior leadership roles.
Full Story: The Wall Street Journal (12/14)
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