AI predictions for 2025 are shared by retail and technology experts

According to Kathy Kimple, executive director of strategy at OSF Digital, AI is influencing the retail industry in a variety of ways, such as the hyper-personalization of customer experiences, the automation of tasks to optimize profitability, and the enhancement of employee satisfaction, as she explains in her blog at RetailCustomerExperience.

It is a fact that a significant majority of U.S. consumers, 71%, are of the opinion that retail will always require a combination of human interaction and AI experiences. Additionally, 44% of consumers reported that AI has facilitated the development of more personalized purchasing experiences for retailers and brands.

58% of consumers are of the opinion that generative AI has already enhanced the online purchasing experience, and 52% are inclined to employ gen AI tools to assist with apparel purchases. A significant number of consumers, 71%, are of the opinion that the use of generative AI to generate images of them donning a product can increase their confidence in making a purchase. Additionally, 66% of consumers desire that brands utilize their purchase history and other data to personalize their purchasing experiences.

RetailCustomerExperience contacted a variety of retail and brand executives via email to obtain their AI predictions for the upcoming year, as it is evident that AI will continue to broaden its influence and reach in the retail and consumer sector by 2025.

The feedback is as follows.

Randy Mercer, the chief strategy officer of 1WorldSync:
Despite the fact that only approximately one-third of consumers have confidence in the accuracy of product information provided by AI purchasing tools, they are still inclined to employ them. For what reason? Due to the desire of consumers for more convenient and efficient purchasing methods.

Accuracy is paramount. Shoppers are more satisfied when AI offers precise product descriptions, pertinent search results, and beneficial bundle recommendations.

In anticipation of 2025, retailers must guarantee that their AI is functional and enhances the purchasing experience. Customers will choose to purchase at stores that employ AI more effectively if their AI recommendations are not helpful or reliable.

Pascal Malotti, Valtech’s strategy director and global retail strategy lead:
The retail industry is on the brink of a transformation that will be facilitated by AI as 2025 approaches.

AI will allow retailers to develop hyper-tailored, immersive experiences that enhance consumer relationships, surpassing the limitations of basic personalization. Today’s consumers are in search of experiences that evoke affective responses, rather than merely efficiency. Retailers that are capable of providing these personalized, significant instances will establish enduring customer loyalty.

In the forthcoming year, retailers will utilize artificial intelligence (AI) to develop purchasing journeys that are highly personalized, utilizing real-time consumer data to influence each interaction. This will extend beyond product recommendations to create experiences that are distinctively personalized for the individual. For example, sending a notification with a special discount on a frequently purchased item as the customer enters the store or providing curated outfit suggestions based on past purchases and browsing behavior, respectively. These considerate gestures cultivate loyalty by fostering connections, rather than by providing convenience.

Keith Nealon, CEO of Bazaarvoice, predicts that “AI and machine learning will revolutionize retail supply chains in 2025, enhancing adaptability and efficiency.”

Predictive analytics can assist retailers in predicting shifts and restocking more quickly, thereby preventing costly shortages or oversupply, as the tempo of product life cycles accelerates. Technology is revolutionizing retail at every contact point, from demand forecasting to personalized purchasing experiences, allowing brands to establish more profound connections and adapt dynamically to consumer demands.

These technological advancements enable retailers to make informed real-time decisions that enhance operational efficiency and consumer satisfaction.

Randy Carr, CEO of World Emblem, stated that the apparel industry will undergo a significant transformation in 2025 as a result of AI-driven customization.

AI will enable manufacturers to deliver personalized, high-quality products at scale and in an efficient manner, as customers demand them more frequently. Randy anticipates that in 2025, over 70% of emblem orders will be personalized through the use of AI, which will streamline the design, production, and delivery processes to satisfy these requirements.

In addition to customization, AI will optimize the entire manufacturing process by improving predictive maintenance, quality control, and inventory forecasting. In a sector where customization and rapid turnover are becoming increasingly sought after, those who incorporate AI are likely to reduce waste, reduce costs, and enhance customer satisfaction—critical factors in maintaining a competitive edge.

Keri Rich, Vice President of Product Management at Lucidworks:
Next year, I anticipate the seamless integration of a variety of generative AI-powered experiences into the entire commerce search and discovery experience, including the abolition of the search bar.

Companies such as Amazon have already announced their intention to leverage Gen AI to streamline product comparisons and expedite consumer research.

The initial step for retailers is to identify the areas of their customers’ journeys that could be improved through enhanced personalization and increased efficiency. Subsequently, they must develop the AI solutions to facilitate this process.

Jason Grunberg, Chief Marketing Officer at Bluecore:
Many retailers are aware that generative AI will assist them in resolving issues; however, they have not yet determined the specific problem they intend to address.

In the upcoming year, we will observe an increase in the utilization of AI by retailers to address more significant issues that affect their consumers, in addition to automating content and driving efficiencies. In the process, they will drive business growth by identifying the intersection of their clients’ problems and company challenges and resolving them with AI. For instance, Amazon created Rufus, an AI purchasing assistant, to facilitate the process of product discovery and the prompt resolution of inquiries. However, the technology also enhances revenue and conversion rates.

AI has the potential to address a wide range of consumer issues, and 2025 will be the year in which retailers implement it. Ultimately, this establishes the groundwork for a future that is more agentic, in which consumers themselves utilize AI to manage research, discovery, selection, and other tasks, thereby simplifying their lives.

Craig Crisler, CEO of SupportNinja:
I assure you that in 2025, 50% of AI initiatives will not be able to scale.

For what reason? Companies are overestimating the fast victories and underestimating the complexity.

However, there is a positive aspect to this: these disasters will encourage businesses to reconsider their strategy. The companies that are able to integrate human intelligence and AI to develop a scalable, resilient CX model will emerge as the victors in this sector. In 2025, brands that fail to implement AI-human hybrid teams for customer experience will rapidly become obsolete. You will not be rescued by AI alone. In order to satisfy customers in real time, it is imperative that AI efficacy and human empathy collaborate. The future of CX will be owned by outsourcing companies that are capable of delivering this potent hybrid. Those brands that fail to adapt will be eclipsed and outperformed.

Eric Williamson, Chief Marketing Officer at CallMiner:
The implementation of AI is currently transforming the operations of customer experience teams. However, not all implementations are generating the expected value for organizations.

Our research suggests that a significant number of contact center and CX executives (37% of them) are unable to determine which AI technology is most suitable for their business requirements, and over a quarter (27%) are unsure of how to calculate the return on their AI investments. Organizations are increasingly establishing AI councils or employing chief AI officers to address these obstacles, with the objective of facilitating procurement, implementation, and full enterprise adoption. I anticipate a significant increase in the number of initiatives and hiring in 2025.

On the one hand, informed adoption decisions can help guarantee that your AI investments are generating the expected value, whether that be by enhancing customer experience, enhancing operational efficiency, supporting contact center agents, or achieving other objectives. Conversely, organizations may experience a delay in their AI advancements as a result of the involvement of an excessive number of decision makers in procurement processes, which can hinder or even discontinue them. In order to sustain their competitiveness, organizations must strike a balance between responsible AI adoption and agility.

Dan Rasmussen, Hughes’ SVP and general manager of the enterprise division:
A perfect tempest for self-help IT has been triggered by a dearth of relevant talent, an escalating need for technology support, and a surge in GenAI.

Self-help IT solutions will facilitate the optimization of business operations and establish a competitive edge for organizations. IoT can assist in the early detection of indicators of compromise and aberrant behavior as cyber criminals employ AI to enhance the efficacy of their intrusions.

Cybersecurity will become the primary concern across industries as AI-enabled cyber threats become more prevalent. “Cybersecurity will undergo a rapid transition to “machines fighting machines,” as AI will expand its capabilities beyond assisting humans to also assisting itself.

Darryl Jones, Vice President of CIAM at Ping Identity:
Identity fraud is not a new concept. Identity theft and its consequences have been a concern for consumers for years, ranging from fraudulent credit card transactions to nuisance calls. This danger is on the rise as technology such as artificial intelligence becomes more integrated into daily life.

In 2025, there will be a significant change in the way consumers demand transparency from businesses regarding their security practices and AI utilization. In reality, 89% of consumers are already apprehensive about the security of their identity in the context of AI, and 97% are apprehensive about the online storage of their personal data.

In the midst of the AI growth, consumers will begin to hold companies accountable by demanding that the businesses they interact with improve their security measures for personal data. Organizations that are perceived as untrustworthy will ultimately become extinct and must adapt their digital identity strategy to address the increasing concerns, or else they risk losing customer loyalty.

Peter Curran, the GM of commerce at Coveo:
In the context of product recommendations, e-commerce vendors will place a greater emphasis on transparency in their utilization of AI. Vendors can cultivate trust and establish a more engaging purchasing experience by transparently elucidating the rationale behind the recommendations they make, whether it be based on a customer’s perusing history, past purchases, or common customer behavior.

For example, if a customer is in the process of searching for a hoodie and AI recommends a pair of trousers or a beanie, stating that these items are frequently purchased together or complement the hoodie’s style can make the recommendation feel more relevant and considerate to the shopper’s preferences. Customers are more inclined to interact with recommendations when they comprehend the rationale behind them, as they are aware that they are customized to their preferences. Subsequently, this may result in increased conversion rates.

The adoption of transparency by e-commerce firms can foster a cycle of trust, satisfaction, and long-term loyalty by establishing stronger relationships.