As part of its commitment to AI investment, Kroger has appointed Milen Mahadevan as its first chief data and AI officer, consolidating its AI and data functions under his leadership. "[M]ilen will lead Kroger's AI journey by developing next-generation agentic capabilities that reinvent how we operate as an enterprise and redefine how we engage with our customers," a Kroger spokesperson said. Mahadevan will continue to head up 84.51°, Kroger's data analytics unit, while overseeing the integration of AI capabilities into business processes.

Startups showcased innovative solutions for retailers in the Innovators Showcase at NRF 2026: Retail's Big Show earlier this year. Ethosphere uses AI to improve employee training by analyzing customer interactions, while ShopSight leverages generative AI for real-time consumer feedback and product design. Slip offers digital receipts to enhance customer engagement, Voicebox.ai enables retailers to gather customer feedback through voice messages, and Wholescale helps brands collect and distribute reviews more effectively.

Williams-Sonoma is leveraging AI to enhance customer experience, product discovery and operational efficiency, and its AI initiatives have improved personalization and supply chain metrics, contributing to a 3.2% increase in comparable sales. The retailer plans to integrate AI into in-store experiences, equipping associates with tools to elevate interior design services. "What's really exciting about what we're seeing with the evolution of AI and how customers are using it, how they're engaging with it, is that it really starts to play to our strengths as a business," said Sameer Hassan, chief technology and digital officer.

Walmart and Target are taking different approaches to AI to improve customer engagement, shopping experiences and operational efficiency, with Walmart focusing on developing in-house AI tools such as the Sparky shopping assistant and Target integrating with AI engines like ChatGPT and Google Gemini to enhance product discovery. Experts note that Walmart's approach leverages its scale in grocery and fulfillment, while Target focuses on innovation speed and partnerships to drive growth.

Costco Wholesale has partnered with Moloco to enhance its retail media network, Costco Velocity, by introducing AI-powered on-site advertising, with beta access set to begin in the second quarter. The first ad format, Reserved Display, will create "personalized digital endcaps" based on members' purchase histories. The system will optimize for actual sales and integrate seamlessly with Costco's audience-building infrastructure.

The SmartMeals AI platform, developed by Associated Wholesale Grocers in collaboration with Breez AI, offers a meal-planning and shopping assistant for grocery retailers. Integrated directly into store websites or apps, SmartMeals generates personalized meal plans in about 90 seconds based on household size, dietary needs, allergies and budget. The system automatically applies coupons, provides cooking instructions and creates a shopping list with in-stock items.

Extend's Shopper Operations tool uses AI to segment customers based on order history, return behavior, claims and promotional use, moving brands away from one-size-fits-all policies. The segmentation enables brands to distinguish between high-value buyers, first-time customers and high-risk return abusers or fraudsters. By assigning dynamic policies to each segment, retailers can offer personalized experiences such as instant refunds for loyal customers, while applying stricter measures to those identified as risks.

Despite 58% of consumers expressing openness to using AI shopping assistants, only 6% have actually used them, according to surveys by Radial. Concerns about privacy, security and control over AI actions are significant, with many consumers requiring approval for purchases and strong privacy protections. While current adoption is low, there is interest in using AI for price comparisons to find the best prices and delivery solutions.

AI is becoming integral to retail buying, transitioning decision-making from instinct-based approaches to data-driven models. AI now supports core commercial choices such as assortment planning and demand forecasting, enabling retailers to respond faster to trends and reduce duplication. Tech and buying intelligence platform NuOrder by Lightspeed, which counts Bloomingdale's and Nordstrom among its customers, has accelerated its European expansion by partnering with Nordic ecommerce retailer Boozt to streamline Boozt's buying operations by replacing manual workflows with more efficient data-driven processes.