Major retail companies are increasing their focus on agentic AI to reshape how they interact with customers. They’re willing to accept some loss of direct customer data and proximity in exchange for new ways to sell products. Recent moves show a shift toward AI-powered shopping experiences that happen inside chat interfaces and third-party platforms.

Retail Giants Embrace AI Partnerships

In early 2026, retailers like Etsy, Target, and Walmart have expanded their product offerings on third-party AI platforms. They’ve formed new partnerships with AI providers such as Google’s Gemini and Microsoft’s Copilot. These collaborations build on last year’s work with OpenAI’s ChatGPT, allowing customers to buy products directly within AI chat conversations.

Meanwhile, Amazon and Walmart are developing their own AI assistants, Rufus and Sparky, to change how shoppers engage with their brands. These efforts aim to make purchasing easier and more integrated into everyday digital conversations. Industry experts see this as a significant moment in the evolution of online retail, possibly upending traditional shopping methods.

The Growing Role of AI in Consumer Engagement

Partnering with AI like ChatGPT or Gemini enables retailers to reach customers wherever they are online. This means shoppers can discover, evaluate, and buy products through AI platforms, which could deepen their connection to brands. A report from Adobe showed that AI-driven traffic to US e-commerce sites surged by 758% in late 2025, with Cyber Monday seeing a 670% increase in AI-referred visits.

Experts believe that as AI tools improve, more consumers will rely on these assistants for various shopping needs. Katherine Black, a retail strategist, predicts that adoption will accelerate as retailers enhance their capabilities within these AI systems. This trend could lead to a more interactive and personalized shopping experience for customers.

Challenges and Concerns with AI-Driven Retail

However, shifting shopping to AI platforms comes with trade-offs. Many industry observers are concerned about data ownership and how retailers might lose control over customer relationships. A recent report suggests that 81% of retail executives believe generative AI could weaken brand loyalty by 2027.

When shopping occurs outside of a retailer’s website or app, valuable behavioral data may not reach the retailer. This change shifts power toward AI providers, who control customer interactions and data. For example, Google’s new commerce tools for Gemini aim to support customers from discovery to purchase, but this raises questions about who owns the customer data at each stage.

Sundar Pichai, Google’s CEO, emphasized that collaboration remains important, but many in the retail industry worry about missing context and insights if key data is held elsewhere. Retailers are navigating a new landscape where control over customer data and loyalty is increasingly tied to AI platforms rather than their own channels.

Inspired by

• https://www.artificialintelligence-news.com/news/retailers-examine-options-for-on-ai-retail/

Sources

• retaildive.com
• ai-expo.net
• techexevent.com
• techforge.pub
• techforge.pub